Sonk explains energy summit

THE country hosted its inaugural petroleum and energy summit this week with the aim to promote the sector. Among delegates who attended were Government officials, the sector’s stakeholders, landowners, investors, buyers, suppliers and potential investors from within the region. With the theme, “Unlocking Papua New Guinea’s Energy Potential”, discussions were on ongoing projects within the sector, work in progress of potential new projects, market, investment climate in the country, challenges within the sector, development of other areas as a result of the petroleum and energy development, policy development, etc. The National’s Business Editor SHIRLEY MAULUDU spoke to Kumul Petroleum Holdings Limited Managing Director WAPU SONK on the overview of the summit as it ended yesterday. KPHL was the host for the two-day event.

MAULUDU: Please give a brief overview of the inaugural Petroleum and Energy Summit.
SONK: The Summit has been a huge success. The inaugural event has attracted more than 250 delegates from various parts of the World. Most notable was the huge presence of Japanese Companies, especially LNG buyers.
MAULUDU: What would be a significant highlight of the summit?
SONK: The enthusiasm within the Industry, showing their confidence in PNG as an investment destination in the petroleum and energy sector.
MAULUDU: Do you think there will be some policy changes as a result of this summit?
SONK: I expect that the Government will now focus on landowner participation rights, getting the identification process cleared and most importantly ensure domestic market obligation, national content and third party access polices are in place before the next project reaches FID (final investment decision).
MAULUDU: What was the general reaction like from potential investors?
SONK: Despite the commodity price slump in the past few years, there is renewed hope and investors are keen to invest in Papua New Guinea. Prices have improved, especially oil but it is not likely to reach US$70 (K217.9) -80 (K249)/bbl (oil barrel) anytime soon so industry players and Government now need to adjust the expectations.
MAULUDU: Any plans of staging similar summits going forward?
SONK: The Prime Minister Peter O’Neill announced at his keynote address that such an industry specific or focused conference should be held annually so we will look to making that happen.
MAULUDU: What sort of implication can the summit now have on the country’s petroleum and energy sector given feedback from the participants?
SONK: Investors are looking at PNG to deliver the next project so has a very positive impact.
MAULUDU: Certain issues that are mostly associated with resource projects are landowner issues. Do you think landowners’ matters were also well represented/ covered during the summit?
Landowners are key stakeholders in every project development and I think it was well represented by MRDC (Mineral Resources Development Company) and also industry players want to take landowners along with them so the national content policy is critical to ensuring that they play a meaningful role this time in next projects.
MAULUDU: What was the total number of participants at the summit?
SONK: The official record was 470 delegates but there were people still coming throughout the two days so it would have reached 500.
MAULUDU: How do you see PNG being positioned on the global scale following this summit’s feedback?
SONK: Papua New Guinea is very competitive when it comes to delivering low cost LNG, we also have an attractive fiscal system and a stable Government and a willing partner in development. Papua New Guinea also is positioned strategically in geopolitical sense with our major buyers being in Asian region so Papua New Guinea is the next logical place for LNG project investment. In our region, we have the best reservoirs, high quality gas and large undeveloped gas reserves so this attracts the best and the largest players in the industry.
MAULUDU: Any specific comments of the country’s petroleum and energy sector you would like to make?
SONK: PNG is now ready for the next wave of LNG development so we need to be ready. Government, Kumul Petroleum, landowners, our state owned enterprises etc, must close ranks to take full advantage…Start preparing now.