Just a quick reply Dave R. Many people sling off at poor old PNG but need to look at home as well. Also Oil Search has done well in this economy for 10 years despite obvious difficulties.
With regard to the PNG project the Queensland Government gave early indications of VERY strong support, by signing a Memorandum of Understanding with the PNG and Commonwealth Governments, and by the proposed involvement of the Queensland Government-owned-corporations (Energex and Ergon) as marketing agents. Now the Queensland Government has since reversed what had seemed to be its strong early commitment with the official view now seemingly one that the government was merely a by-stander waiting for the pipeline to be developed.
The Government's research also shows that successful tenders for Townsville Power Station will yield large employment and economic growth - but many in the industry doubt that a small 220MW power station will have much economic impact. Also Enertrade's Moranbah to Townsville pipeline does not link North Queensland to Gladstone.
The problem now is that Queensland's reputation as a reliable administration has been clouded to the point where their economy which has traditionally been highly dependent on foreign investors may present perceptions of uncertainty and risk. This is as a result of a hot and then cold approach to major investors.
just my thoughts .......denny
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