"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 Guinea National Goals and Directive Principles

Saturday, 1 December 2012

Prime Minister Labels PNG Workers Lazy

When you have a state so eager to become capital, through equity interests in the mining, gas and oil sector, it stands to reason Ministers will begin to think like capital, whose primary focus is disciplining and exploiting labour. Enter Prime Minister O'Neill

LNG blowout irks O’Neill

Source:The National, Friday 30th of November, 2012


In Sydney PRIME Minister Peter O’Neill has blamed the recent blow-out in the PNG LNG product costs in part on the country’s work culture.O’Neill told the Lowy Institute in Australia that productivity remained one of Papua New Guinea’s greatest challenges to development and one that had cost the country dearly.

He said PNG had never really focused on productivity, especially on government measures to improve productivity.It has become “relaxed and comfortable”, even “complacent” to the extent it cost the country greatly as evidenced most recently by the blowout in cost of the PNG LNG project, appreciating from the forecasted US$15.7 billion (K32.49 billion) to US$19 billion (K39.23 billion).

The additional cost is to be borne by shareholders ExxonMobil, Oil Search, Santos, Nippon Oil and Gas and the state, which has a 19.4% stake in the project.“While currency fluctuations have been a factor, there is no doubt that actual construction costs have grown significantly,” O’Neill said.“As a shareholder, the national government, on behalf of the people, will have to meet its share of the additional cost.“What concerns me is that we have taken our eye off the main game when it comes to lifting productivity and addressing the rising cost factors impacting the development of our resource sector.”

The project management recently announced that the cost blowout had in part been caused by currency fluctuations and in part by work stoppages brought on by landowner actions and adverse weather.O’Neill said he would be insisting on efforts to lift productivity across the board in every activity right throughout the country.

Productivity had to increase to best position PNG to reap the benefits of an exciting period of resource sector growth, he said.Productivity would enable PNG to compete with other LNG producing nations in the region and elsewhere to secure sales in an increasingly crowded LNG market.O’Neill said contracts for sale for the first LNG project were concluded and LNG would be exported to China, Japan, Taiwan and Korea but the challenge would be to get contracts of sale for the second project managed by InterOil, which received initial approval recently.

“There are more than 70 applications for petroleum prospecting licences awaiting approval and a number of potential projects for domestic gas and export are advanced,” he said.“That is going to require project developers and the national government to focus on cutting development costs, streamlining processes, making sure our tax regime is competitive and ensuring there are no disruptions during the construction and operation phases.”

That would be the only way Papua New Guinea got ahead and stayed ahead of the competition, he said.

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