Posted By Staff Reporter
Underlying FACTS on PNGLNG that Leads up to UBS Loan, Sacrificed Papua LNG and PNG Economy Downfall13/3/2020
By Rickson Apa Underlying FACTS on PNGLNG that Leads up to UBS Loan, Sacrificed Papua LNG and PNG Economy Downfall. A BLESSING turned into a CURSED by People involved during those deals. #1. PNG LNG Social Mapping failed by DPE: In 2004, when the Exploration Development License was handed over Exxon considering the Gas reserves were marketable and economical, EXXON advice and funded the Government body in Charge (DPE) as per constitution (Oil and gas Act 1998) to carry out all the Clan Vetting and Social Mapping whilst having this ready for development in 2008. 4 years was given to have this important task sorted out before the company moves in to carry out this development. Exxon Mobil hoping that PNG Government is doing Social Mapping, they went into FEED pricing, seeking investors and sorting out Markets. What went wrong? - Our Government failed to complete this important task (the social Mapping), when Exxon came into country in 2008 to have this Agreements proceed for UBSA and LBSA, the government paniced, shocked and wasn't prepared. Random people were selected just to have the formalities done and paper work cleared. Real Landowners finds out and now, court case got locked up all the Royalties payments. #2. The drop and Financing of the Equity. Our Mining Acts allow Government to participate up to a maximum of 30% Equity and Royalities of up to 7%. However, for PNG LNG, everything changed without any formal approvals, reviews or NOT even a reference formula, guide or Standards used. The Equity participation dropped to 22.5% as per the Agreements between those people who involved those days was an individual choice based on corporate interest and personal gains.This drop in Equity wasn't even justified, referenced, formulated or guided till now, and it's still applied to other coming projects like Papua LNG and proposed Pnyang LNG. Thus, PNG Government was forced by the Developers (EXXON) on an overpriced FEED costing a whopping US$22 billion for a 800km pipeline, few onshore wells and only 2 trains.. Our Government have to participate with US$1 Billion. 6 months earlier, Arthur Somare had a Loan deal with the International Public Investment Corporation (IPIC) fund of the Government of Abu Dhabi. The securities used to secure this was the PNG Government Equity in the Oil Search Limited. This IPIC Loan wasn't and ordinary Loan, but an exchangeable Loan. This means IPIC acquired the rights to either being repaid in cash or attain the Securities in the loan. The Loan was to be Matured in 5 years, with interest at 5% but IPIC couldn't opt for a short period. Hence, IPIC took over the whole Equity in the Oil Search Ltd which belongs to PNG Government with an additional payment of US$70.8million. What went Wrong? - The overwhelming Priced of FEED for PNG LNG at US$22 Billion was chocking and NOT even our Government have third party experts to confirm, justify, QAQC check and verify all pricing. The World's largest LNG project in Abu Dhabi (The RAS GAS LNG) with 14 Mega Trains, hundreds of offshore wells with 2900km mega pipelines and floating facilities that all have a total cost of ONLY US$14 Billion. This overpriced PNGLNG has killed our Government to dig deeper for IPIC Loan, resulted in selling our Equity in OSL. - There was a conflict of interest when the Somare's (The father was a PM and the Son was the Minister for Public Companies IPBC), which the Loan was ALL carried out by Michael and Arthur themselves resulting in the State loss of Equity in OSL. Some of the many illegal and deviations carried out to attain the Loan are as follows *Treasury wasn't involved in IPIC loan *IPIC loan has NO approval from NEC *Loan never being tabled in the parliament *Negotiated and signed between Close doors *Loan drawn half a year by Arthur and Michael before required, thus causing early maturing of the Loan. Finally, PNG GOVERNMENT has NO Equity in OSL and IPIC took over. ------------'xxxx to be continued ------------ Section 2 . How Peter Onil and Peter Botten mastermind the UBS Loan for OSL to buy the Stake in Elk/Antelope project which Leads up to the Papua LNG? . The missing funds in UBS for Bridging Loan and Collared Loan. ....... keep in touch. . More coming up Thanks you Next : Lawyer Paul Paraka Wants To Investigate Recruitment Of PNGDF Comments are closed.
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