InterOil seeks Gulf LNG operator

By MALUM NALU
INTEROIL says it is in the process of seeking an internationally-recognised operator for its controversial and much-delayed Gulf LNG project.
InterOil CEO Phil Mulacek yesterday broke his silence following continuous accusations and attacks from government, private sector and landowners on the company.
Minister for Petroleum and Energy William Duma told parliament on Tuesday that InterOil was a small company and did not have the capacity to develop a large world-class LNG project because it had neither the capacity nor the experience.
Duma said the government would not allow InterOil to develop the project in phases as it wanted to do.
Former petroleum minister Francis Potape told parliament on Tuesday that when he was minister, he advised InterOil several times to look for a reputable international company to develop the project with, but it had not done so and continued to insist it could develop the project.
State-owned Petromin Holdings joined the fray on Tuesday by accusing InterOil and Liquid Niugini Gas Ltd of deviating from delivering the project.
Impatient Gulf landowners have in recent weeks made it clear to InterOil that their patience was wearing thin.
Mulacek, in a statement yesterday reiterated InterOil’s ongoing bid process to select an internationally-recognised LNG operator to join the Gulf LNG project was on schedule.
“The bid process is being led by investment banks Morgan Stanley & Co LLC, Macquarie Capital (USA) Inc and UBS AG,” he said.
“The company is pleased with the process being conducted by the investment banks and the number of bidders involved in the process.
“Selection of the preferred LNG operator is targeted for the second quarter of this year.
“The project agreement stipulates that final investment decision (FID) be reached by June 2013 for the 7.6 million tonnes per annum Gulf LNG project.
“The front end engineering and design (FEED) packages for the project facilities are mostly completed.
“We understand the government’s desire to have an internationally- recognised LNG operator join the project and we trust that our LNG bid process will fully satisfy that requirement.
“We welcome the continued support of both the prime minister and the minister for petroleum who endorse an LNG project in the Gulf which complies with the LNG project agreement.”