IPBC Govt’s nominee for LNG project

Business, Main Stories

THE Independent Public Business Corp has become the latest major player in the liquefied natural gas (LNG) project representing the Papua New Guinea Government, with a total stake now of 19.6%.
The final investment determination  by project owners ExxonMobil yesterday has allowed the State to get a further 0.2%, thus boosting its initially estimated ownership of only 19.4%.
With bigger stake at the project, the Government finally nominated IPBC as its nominee.
Peter Graham, managing director for project operator Esso Highlands Ltd, said this yesterday shortly after the project partners and the National Government gave the approval for the project to go ahead after making the final investment decision (FID).
He said the initial 19.4% determination was based on the hydro carbon contributions and the capital costs associated with each of the licences, which were factored into a formula, thus resulting in the 19.4%.
Mr Graham said with State gaining the 0.2%, some stakes of project partners had either gone up or gone down, but could not reveal the exact figures as of yesterday.
“And there will be several others (fluctuation of stake ownership) through the life of the project as we develop the gas.
“There will be another check on the reserves and then there will be re-determination and there would be slight adjustments,” he said, adding all project participants had paid their share in the project.
Funding for National Government’s 19.6% stake in the project through IPBC is from Abu Dhabi’s International Petroleum Investment Co (IPIC).
The Mineral Resources Development Corp (MRDC) has 2.8% stake in the 19.6% and Eda Oil Ltd, a subsidiary of Petromin (PNG) Holdings Ltd has 0.2%.
Managing director for Petromin, Joshua Kalinoe said Petromin had already contributed about US$3 million (K8 million) towards the project.
He said an estimated total contribution would be over US$10 million (K27 million) for the 0.2% equity, as calculations were continuing.
Funding would be from cash reserves and other arrangements.
He said Eda Oil was currently participating in the project because of its Moran oil interest.
But he regretted that Petromin did not have a bigger stake in the project.