Lanco eyes gas project contracts

Business, Normal

The National, Tuesday July 16th, 2013


A LOCAL landowner company will have financial, technical and technological capacity to be a major contractor in the construction of the Stanley gas project after a joint venture arrangement is done.

This is according to the Stanley Gas Field Landowners Association chairman Rex Aipe.

Aipe said the Stanley Resource Investment Ltd (SRIL), the company owned by the association, had secured private arrangements with an overseas partner and is now in the process of formalising the deal.

The chairman said the current 2% allowed under the Oil and Gas Act was not enough for everyone, because the provincial government, impacted local level governments (LLGs) and the landowners would be sharing this 2%.

“We have the financial capacity to buy off the government free carry of 22% as required under the Oil and Gas Act and we will be negotiating with the operator of Stanley Gas, Horizon Oil to purchase additional equities.

This will really benefit my people,” Aipe said. 

But he said he was very concerned that the developer (Horizon Oil) has awarded early major contracts to overseas companies without consulting the landowners.

He raised this concern with Minister of Tourism, Art and Culture and local MP Boka Kondra, who would write to the minister for Commerce and Industry for government intervention.