Oil and gas industry

I LIVE in Goroka, Eastern Highlands, and am hearing rumours from Port Moresby on the oil and gas industry by the Government that should concern everyone in PNG.
I believe the Government is seeking change to duly executed contracts with major international oil companies that underpin the new Papua LNG project which is set to boost the PNG economy.
Unfortunately, the Government attitude is such that major oil companies are prepared to leave the country if the changes to the existing contracts are made, and the international ramifications of faith and confidence in PNG, which is in place now, will be lost for a very long time.
If these companies decide to withdraw from PNG, the loss of local jobs will have a huge impact on the economy both in the towns and the rural areas, where people to be unable to pay their rent, repay house loans, pay school fees and support their extended families and the list goes on.
The effect for rural areas will that there will be fewer jobs for Papua New Guineans and there will less money in local economies.
Papua New Guineans will be poorer.
As a businessman, I fear the loss of at least 150 national jobs from my company alone.
So I hate to think what the total loss of jobs might be nationwide.
I urge the prime minster and the Cabinet not to seek changes to existing terms and contracts, but to focus on new projects, so PNG does not lose international credibility. PNG is blessed with an abundant commercial onshore and offshore gas reserves that will last for a 100 years. There will be many opportunities to improve contract terms for the benefit of landowners, provincial governments and the PNG people.
Future oil and gas projects will be delayed or lost if we lose our international credibility as a place for investment.
The corruption in Port Moresby has become extremely excessive.
Our past and current politicians and public servants have either directly or via legal trusts used PNG funds to purchase business and private properties from Cairns to Sydney in Australia as well as New Zealand and Singapore.
It is amazing how many PNG children are attending schools that cost close to a K100,000 a year.
Where has all the millions that went to Southern Highlands gone?
So whatever the Government intend to squeeze out of the oil and mining companies will only be misused in Waigani and very little for the benefit of the rural people.
I write because I want PNG to have a bright future and I appeal for common sense by the Government.

Mal Smith Kela
Former Eastern Highlands
Governor