cue resources, page-26

carpenter promotes australian pipeline instead of WA Premier promotes Australian pipeline in wake of PNG unrest


Thursday, 3 August 2006

WESTERN Australian Premier Alan Carpenter has taken advantage of the current security issues surrounding the $A4 billion PNG-Queensland pipeline by renewing calls for a transcontinental pipeline linking WA's vast gas supplies with the east coast market.



WA Premier Alan Carpenter


Oil Search's Kutubu operation in PNG

In the wake of a declaration of a state of emergency on Tuesday in PNG's Southern Highlands province, where Oil Search's sizeable gas reserves for the project are located, provincial governor Hami Yawari reportedly said he would no longer support the project.

Carpenter is seeking Federal Government support for a pipeline linking WA with the east coast and claims the latest incident is further evidence that PNG carries risks, unlike WA.

"There are issues that are emerging in PNG which are causing people concern about the future of a gas pipeline between PNG and Australia," Carpenter told ABC News.

"Why would we want to pursue bringing gas from another country when we've got abundant supplies in our own country?"

Carpenter reportedly urged the Federal Government to reconsider its support for the PNG pipeline project.

In contrast, Oil Search told the market on Tuesday afternoon that its operations in the province, which includes the lucrative Kutubu oil field and Hides gas field in the Southern Highlands region as well as its Moran, Gobe and SE Mananda assets, were "unaffected" by the state of emergency.

"We anticipate that the company will continue to operate normally during the state of emergency," managing director Peter Botten said.

Meanwhile, conflicting reports have emerged overnight regarding Yawari's latest public comments on the PNG pipeline.

After a state of emergency was declared earlier this week, Yawari warned investors to "keep their money", adding that he would make sure the project did not go ahead, according to the Post-Courier newspaper.

"I am very angry. You are creating another Bougainville in the Southern Highlands," he said.

However, the paper reported today that Yawari appeared on national television station, EMTV, urging landowners to not take the law into their own hands and attack resource projects.

PNG Prime Minister Sir Michael Somare imposed the state of emergency in a bid to restore good governance as well as law and order in the province. Around 700 soldiers and extra police have reportedly been sent to the province.

Yawari is currently being investigated by the public prosecutor in PNG for allegedly misusing public funds and failing to accurately disclose personal income details.

The Southern Highlands provincial government has since been suspended, effectively rendering Yawari powerless.

Shares in Oil Search were up 1c in Thursday morning trade on the Australian Stock Exchange to $A4.04.

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