Sounds like it will be resolved. Typical PNG tribal politics. R/B
Refinery blow
LANDS Minister Robert Kopaol has revoked the land title on which the multi-million kina Napa Napa oil refinery is being built. And, it is likely to send a disastrous and negative signal for investor confidence in the country and could threaten its economy. Prime Minister Sir Michael Somare, when briefed on the saga, said last night he would call Mr Kopaol up this morning to clarify the matter. His media advisor Bertha Somare said Sir Michael would meet Mr Kopaol this morning, also adding that the DA 5 land was land surrounding the project site. Petroleum Secretary Joe Gabut, asked to comment, was visibly shocked that his office and Petroleum Minister Sir Moi Ave’s offices were not consulted. “I am very shocked. I am very disappointed that they have not consulted my minister and myself,” he said. Mr Gabut said this decision alone could be disaster for the country on trying to build investor confidence. The project he said would bring in about K800 million into the Government coppers and that the decision must not be taken lightly. He said he was very upset because the Lands Department gave the assurance that all proper procedures were followed in so far as the land lease went. Mr Kopaol on December 5 wrote to the Lands Secretary advising the secretary of his decision to revoke the previous acquisition and lease of the land and awarded it to the customary landowners. Post-Courier understands the Secretary’s office had written to the Minister advising that he withdraw his decision, however, attempts to get the secretary’s comments were unsuccessful. A letter to Maladina Lawyers on the same date reads: “To resolve the dilemma caused by the department’s failure to use due process, I have determined to resolve the previous acquisition and lease, as proper (procedure) was not previously followed by the department. “The land will then be granted to the legitimate customary owners who will then lease the required area to the oil refinery.” He said in the letter he had directed the department to attend to necessary documentation to give effect to his decision. The letter to the secretary reads. “The land should have been returned to the customary landowners and they then lease the portion required to the oil refinery.” He also said: “Your assistance is required to prepare revocation documents and notices to interested parties advising them of the procedure the department is going to adopt to return the customary land to its rightful owners prior to new leases being granted.” Meanwhile, InterOil director Christian Vinson said: “InterOil is aware of some recent correspondence regarding the lease of its refinery site at Napa Napa, where work is going ahead building PNG’s first oil refinery. “The company relies upon the provision of its project agreement co-signed with the State after a long period of consultation and corporation. “InterOil is confident that continued consultation with the State will resolve this matter.” Executive director of the Chamber of Mines and Petroleum Greg Anderson said it was a very big concern to the industry. Mr Anderson said with the Government tax regime, the industry was encouraging more investment and this would not go down well. Attempts to get comment from Mr Kopaol was not successful.
