"We declare our first goal to be for every person to be dynamically involved in the process of freeing himself or herself from every form of domination or oppression so that each man or woman will have the opportunity to develop as a whole person in relationship with others".
- Papua New GuineaNational Goals and Directive Principles
Monday, 18 October 2010
LNG in the News: Somare hails progress of Kroton No. 2
PUBLIC Enterprises Minister Arthur Somare, said yesterday he was pleased to be briefed by the chairman of Kroton No. 2, Kerenga Kua on progress with the PNG LNG Project, which is scheduled to commence LNG exports by early 2014.
Mr Somare expressed confidence the recently appointed interim board and management of Kroton No. 2 will play a positive role in managing the 19.6 per cent stake held by the PNG Government in the PNG LNG Project. A full board will be appointed after the legislation for Kroton No. 2 is enacted by Parliament.
Mr Somare noted that Mr Kua has extensive legal and practical business experience especially in the mining and petroleum sectors that would be of value to Kroton in its formative stage.
It will take on the key liaison work with the project manager, ExxonMobil, to ensure the National Government through the Ministry for Public Enterprises and the National Executive Council is aware of all project developments in anticipation that construction would be completed by the end of 2013.
The schedule driven nature of the construction phase will require all stakeholders to provide maximum value to ensure costly delays are avoided.
Kroton will also keep a close watching brief, as a direct equity participant in the project, on ongoing issues that need to be resolved between the National Government and project area Landowners, such as the issue of Business Development Grants or ‘seed capital’.
As the State’s nominee in the PNG LNG Project, Kroton No. 2 was uniquely placed to play a significant role in managing project related issues such as project security and maintenance of the rule of law and in ensuring the necessary capacity building to enable various arms of government to efficiently handle the large inflows of people and equipment needed for this $US15 billion venture.
An interim board of directors has been appointed for Kroton No. 2 to establish the corporate entity and commence operations as the State’s Equity participant in the PNG LNG Project following the National Executive Council Decision on May 12 this year. (NEC Decision No. 88/2010).
The board consists of well-known PNG lawyer Kerenga Kua as Chairman with the Acting Secretary of the Department of Public Enterprises, Mathias Lasia, and a nominee from the PNG Treasury, Igimu Momo, appointed as directors. Mr Kua, who hails from Kundiawa, has been president of the PNG Law Society since 2003, Deputy
Chairman of Nambawan Super and Chairman of Finance Corporation.He is a former managing partner of Posman Kua Aisi, where he was partner in charge of commercial litigation from 1993 to June this year.
A more permanent Board representing all relevant stakeholders will be appointed in due course as Kroton’s legislation is passed by Parliament. More broad based participation by Landowners and Provincial Governments is envisaged through exercising of a call option on up to 25.75 per cent equity that was negotiated from the Benefits Sharing Agreement process in 2009.
The Board appointed has further appointed Mr Dairi Vele as Interim Chief Executive Officer, Brian Rapson as Chief Operating Officer, Geoffrey Emang as General Counsel and Pertusio Capital Partners as Strategic Advisers.
Mr Vele has formally resigned as Project Director of the Gas Projects Coordination Office and officially commenced his role at Kroton No. 2 on 11 October 2010.
The NEC decision also involved the separation of Kroton No. 2 operationally from IPBC. It is envisaged the Government will be announcing the new arrangements for the Gas Project Coordination Office to facilitate the development of the PNG LNG Project and other gas commercialization initiatives in the near term.