KPHL supports Total

 By SHIRLEY MAULUDU

IT is in the Government’s interest to always support any petroleum project that is low-cost and technically sound, Kumul Petroleum Holdings Limited managing director Wapu Sonk says.

He said this would avoid any financial burden being passed onto the people and Government entities. 

The National sought his views on the call by Gulf Governor Havila Kavo to have the Total-operated Papua LNG project plant built in the province.

It has been decided that the location will be at Caution Bay near Port Moresby. 

“The main driver for site selection is project economics and technical feasibility. And the operator usually makes those decisions,” he said.

“KPHL as a joint venture partner will support Total in their decisions. 

“At the end of the day, if we force Total or any other oil and gas operator to build projects in an uneconomical and technically feasible manner, the cost in Capex (capital expenditure) and the ongoing Opex (operating expense) always gets passed on to the people of Papua New Guinea through taxes and equity dividends through KPHL or MRDC (Mineral Resources Development Company).

“So it’s in all our interest to get a project that is low-cost and technically sound with future ongoing operability in mind.”

Kavo had told a meeting between the State and PNG LNG project landowners in Port Moresby this week that the Gulf provincial government wanted the Papua LNG project developed in the province.

If developed in Gulf would benefit people in spin-off businesses.