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png chastises carpenter on png gas project Avei nails Carpenter on PNG gas project


Thursday, 3 August 2006

THE premier of Western Australia was ill informed in his criticism of the PNG gas project following the declaration of a state of emergency in the Southern Highlands, PNG Petroleum and Energy Minister Sir Moi Avei said today.



Oil Search's Kutubu operation in PNG

Sir Moi said as far as he was aware Premier Alan Carpenter had never visited Papua New Guinea and had not been briefed on the PNG gas project.

"His call for the Australian Government to abandon its support for the PNG gas project because of the so called 'risks' arising from the position in the Southern Highlands deserves to be totally rejected," he said.

Sir Moi said the state of emergency would actually strengthen the gas project because it would restore law and order, ensure the delivery of basic services and infrastructure, and end the widespread abuse of public money, including royalties.

"When the Government decided to impose the state of emergency we briefed out partners in the PNG gas project. They understand the reasons for the decision and it is evident that investors do so as well," Sir Moi said.

"The managing director of Oil Search Limited – the largest shareholder in the project – has made a statement expressing total confidence that the company's operation in the province won't be adversely impacted by the emergency," he said.

"He went on to state that any improvement in law and order and service provision in the province could only be seen as positive for the company's staff and the local community around its operations."

Sir Moi said the decision to impose the emergency was not taken lightly but the evidence in favour of a state of emergency was overwhelming.

"It also has bipartisan political support, with the strong backing of the leader of the opposition and every other Southern Highlands MP apart from the governor."

Sir Moi said this week's mini-budget would assist in strengthening support among landowners for the project because it funded outstanding payments and provided funds for the business development program that would directly benefit landowners and local communities in the gas resource area.

"The premier of Western Australia is entitled to promote his own gas industry, but his suggestion that the PNG gas project be abandoned and a gas pipeline be built from WA to Queensland does not make any sense whatsoever," he said.

"I am more certain than ever that we can deliver gas to Queensland, and other states, at competitive prices and with complete reliability.

"And we can do so over a very long term – given our existing reserves and what might flow from future exploration."

Sir Moi said it was interesting that the WA premier earlier this week warned that natural gas supplies to WA households and industry could run out within 10 to 15 years.

"Our capacity to meet the needs of the PNG gas project, and our onshore gas processing and domestic electricity use, is already measured in decades and not years," Sir Moi said.

"The state of emergency in the Southern Highlands will not harm the commercialisation of our vast gas resource – in fact it will help strengthen it."

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