BISHOP BROTHERS MARK 50 YEARS IN PAPUA NEW GUINEA

Kumul Petroleum recognition means KEO dividend payment to PDL7 landowners

Papua New Guinea’s national oil and gas company, Kumul Petroleum Holdings Limited has announced that all necessary eligibility process verifications had been completed with the PDL 7 landowners, so that they were able to receive accrued Kroton Equity Option (KEO) preferential dividends.

The 2009 PNG LNG Project Umbrella Benefit Sharing Agreement between the Independent State and recognised provincial governments and landowners impacted by the project were entitled to exercise a commercial option to acquire shares in the State entity taking up shares in the project, known as the Kroton Equity Option.

Wapu Sonk, Managing Director of Kumul Petroleum said, “working closely with the Department of Petroleum and MRDC, we have completed the landowner identification studies for this landowner group, ensuring that they can receive their KEO entitlements.”

“Today I am pleased to announce that Kumul Petroleum can award this PDL 7 landowner group with a share certificate, recognising them and their nominated company, and therefore a cheque for their accrued preferential dividends from 2017 to 2021, for K22.7 million, this is a significant amount.”

“I thank these landowners for their patience over these past 5 years, we are all glad this moment has come.”

The PDL7 landowner beneficiaries have established and nominated Kroton Laitepo Equity Limited to receive the KEO benefits on their behalf.

Mr Sonk added, “It is important that Kumul Petroleum follows due process, including proper identification verified by the Department of Petroleum.”

“We issued a public notice in May this year notifying all KEO beneficiaries to complete KEO eligibility criteria requirement. The PDL 7 landowner beneficiaries are the first to complete this.”

Mr Sonk took the opportunity to also encourage other beneficiary groups to complete their KEO eligibility criteria compliance so that they could also receive their KEO related benefits. Kumul Petroleum Managing Director Wapu Sonk presents to PDL 7 landowner beneficiaries who established and nominated Kroton Laitepo Equity Limited to receive the KEO benefits on their behalf.

EU-STREIT PNG URGES YOUTH TO JOIN AGRI-FOOD VALUE CHAIN

EU-STREIT PNG joins hands with rural youth groups in Papua New Guinea to celebrate the International Youth Day with a message for young population to become proactive and take part in agri-food value chain businesses.

The EU-STREIT PNG Programme in collaboration with rural youths and students in the Greater Sepik region marked the International Youth Day 2022 (IYD) with a message for all to become innovative and take part in all nodes along the agri-food value chains, including areas supported under the Programme.

Led by the Food and Agriculture Organization of the United Nations (FAO), the EU-STREIT Programme organised two events this year in East Sepik and Sandaun provinces, bringing together 1,781 youths in total. These youths were briefed, sensitised, and made aware through engaging interactions, including motivational speeches, cocoa competitions, student debates, contemporary group dances, drama role plays, march pass and collective chanting, in a bid to promote this year’s theme of IYD: ‘Intergenerational solidarity, creating a world for all ages”.

IYD is commemorated every year on 12 August, bringing youth issues to the attention of the international, national, and local communities, while celebrating their potential as partners in today’s global society.

Explaining this year’s theme, Ms Patu Shang, the FAO International Gender and Youth Inclusion Specialist, on behalf of the Programme Coordinator, called on the elders and parents as well as authorities to provide an enabling environment for youths to excel and take over. “It means mainstreaming young people’s perspectives and we have to come together as one from all ages. Therefore in everything we do, we must sit together and include youths in solidarity so they can tell us their perspectives.”

Ms Shang also challenged the youths particularly those from rural areas to become innovative and take part in agribusiness. “Don’t just sit back and observe because the world will pass you by.”

She added: “EU-STREIT PNG is supporting a holistic approach to develop cocoa, vanilla and fisheries activities so every young person can find his/her place in any node along the agri-food value chains and with the advantage of technology they can develop a particular value chain either as a farmer, or input supplier, or take part in processing and marketing.”

These overarching and inspirational messages where shared in the two celebrations held in Yangoru-Saussia District of East Sepik Province, on Thursday 4 August and in Vanimo, Sandaun Province, on Wednesday 17 August.

Bishop Brothers mark 50 years in Papua New Guinea

For 50 years, Bishop Brothers have been an integral part of the ongoing development of Papua New Guinea through the supply and service of products to a multitude of projects in agriculture, mining, forestry, manufacturing, marine, industrial, and, over the last decade, the evolving oil and gas industry.

Bishops in many ways have grown and developed with the nation -- from humble beginnings in 1972 with two brothers working enthusiastically to get established with a handful of staff to numerous outlets and over 300 staff.

In 1972 Mark and Wayne Bishop came to Papua New Guinea to work with their older brother Ross. The original business in Port Moresby focused on general engineering and mechanical and marine maintenance. As the business developed, the Bishops took advantage of the opportunities PNG presented in this area, and invested in more and varied machinery, leading to the young men working 14- to 20-hour days, 7 days a week to build their business service and brand.

The business continued to grow, and by 1977 the brothers had purchased their property, which remains the current site of the Port Moresby sales branch, Equipment Hire, and head office.

As PNG developed and flourished after independence, so did the Bishops. The Bishops played an integral part in projects across the country. Bougainville Copper realized the first labor hire of tradesmen, and later a sales outlet at Kieta, followed by a workshop and sales office in Lae in 1985 to manage the maintenance requirements coming off the island, and to service the new projects coming online in the Misima and Porgera gold mines, and the oil fields of Gobe.

The brothers established a joint venture (JV) in Tabubil in 1983 when the Ok Tedi mine commenced operations. The venture consisted of a sales office, hardware store, and machining, engineering, and fabrication workshops. The JV was responsible for the fabrication and construction of many of the original houses in Tabubil.

In 1984, a sales branch was established in Mt. Hagen to service the tea, coffee, general agriculture, and extended mining and exploration activities in the Highlands. With the success of the Mt. Hagen branch in the agricultural area, a branch was opened in Kimbe in 1987 to provide sales and service to the developing oil palm industry in the province.

In 1990, a branch was opened in Rabaul, again to support the cocoa, copra, and balsa industries. The volcanic eruptions in 1994 witnessed the decimation of the Rabaul township and the Bishops outlet. After some years, Bishops returned to the province, setting up an outlet in the now thriving Kokopo town. 1991 saw a second JV established, this time in the Porgera township. This outlet serviced the Porgera gold mine with a concentration on hydraulic services. This association led to major contracts for the supply of consumables to be supplied from Lae.

In 1999, Bishops set up a sales outlet in Madang, as the promise of mining developments was a catalyst for this operation. The final branch expansion came in 2006 when Bishops entered the Solomon Islands with an outlet in Honiara. Unfortunately, this branch was closed in 2022 due to ongoing internal tensions, which lead to numerous security incursions on all business houses there.

Bishops Today

After a birth based around engineering and machining services,

Top photo: Bishop Brothers Port Moresby office in 1980. Above photo: Port Moresby office today.

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the thriving Bishops business today is the leading supplier of engineering, industrial, and safety products to PNG.

General Manager Len Pianta, who has been with the company for over 25 years of the journey, has continued to drive the business with a strategy based on customer service, competitive pricing, quality products, stock in the country, experienced staff, up-to-date technologies, and a substantial network of suppliers from around the globe.

Presently, Bishops operates six sales branches; Port Moresby, Lae, Mt. Hagen, Kimbe, Madang, Kokopo, and an Equipment Hire/ Crane Hire division. Industrial sales remain the spine of the business.

Bishops stocks an extensive range of products and superior brands in PNG covering all industries. These product ranges include safety clothing and footwear, safety equipment, materials handling, workshop, machinery, and construction equipment, power and pneumatic tools, lubricants, sealants and chemicals, janitorial, general industrial products, hand and cutting tools, welding and abrasives, hydraulics, valves and hoses, fasteners, bearings, and oil seals, power generation, and timber processing equipment.

The brands include Bosch, Stihl, Cigweld, Flexovit, Insectshield, Spanset, Warrior, Milwaukee, Puma, Enerpac, Alfagomma, Macnaught, Steel Blue, Howler, CRC, Penrite, Loctite, and Wacker.

Bishops have developed an import program and introduced many currently well-known brands to the PNG market -- King Tony hand tools, Bulldog boots, Hardman clothing, PPE Select and Wirra safety products, and Genpower generators. The business continues to develop this direct import program to offer PNG a range of quality products at competitive prices.

Since its inception, Bishops has always re-invested profits back into PNG, through the land, buildings, redevelopments, stocks, and of course our people across the country. Bishops presently employ 300 staff across PNG and carry 50 million kina worth of products. Major redevelopments of Port Moresby, Lae, Mt. Hagen, and Kimbe now reflect modern facilities with exponential storage capacities to service the major customers across the country.

Bishops are proud to be associated with and service old and new, large and small clients alike: Exxon Mobile PNG, OTML, NBPOL, Simberi Gold, Kainantu Holdings, Porgera JV, Wood Group, Ramu Agri, Innovative Agro, Hides Gas, Curtain Bros, Associated Mills, Paradise Foods, Ela Motors, Monier, Anitua, Morobe Goldfields, PNG Motors, PNG Forest products, Total Energies, and Guarddog, to name a few.

The office in Rabaul before and after it was decimated by a volcanic eruption in 1994. (Photo below) Some of Bishops’ 300 staff.

Top photo: Bishop Brothers Lae office in the 1980s. Above photo: Mt. Hagen office today.

Bishops Future

The future looks bright for Bishops and PNG with several major projects earmarked to continue to develop and enhance the nation. Bishops will continue to grow and develop through the continued custom and support of our communities.

Bishops will continue to support and grow our people, as we appreciate that they play an integral part in continued business success.

Pasca A project awaits signing

The Pasca A offshore gas project in Gulf will go ahead once the gas agreement is signed and the petroleum development licence (PDL) is approved, says developer Twinza.

Robert Gard, the chief executive officer of Twinza, made the statement while attending the recent induction ceremony for the 11th National Parliament in Port Moresby.

“We are awaiting finalisation and signing of the gas agreement and approval of the petroleum development licence.

“We are ready to proceed with front-end engineering and design (Feed) and project financing arrangements,” he said.

The 95 km offshore Pasca A offshore gas project is located in 93 m of water. It was found in 1968, and Twinza bought it in 2011.

After conducting a rigorous subsurface evaluation programme, Twinza submitted for a PDL in 2015.

Pasca A possesses more than 70 mmbbl (million barrels) of liquefied petroleum gas and condensate in addition to 0.33 trillion cubic feet of recoverable dry gas. The project’s advantages include: • K500 million per year to the State (tax, levies, royalties); • K8.6 billion revenue to PNG over the life of the project; • K18 billion contributions to the gross domestic product over the life of the project; • K400 million per year spent in PNG annual operating costs; and, • 300 construction and 500 permanent jobs in PNG both direct and indirect.

According to Gard, around 70 local businesses have already been named as service providers for the continuing project.

“Direct jobs include offshore, supply base and office workers such as operating, maintenance, onshore support, marine support, catering staff, management and office support,” he said.

“Indirect jobs include security, airline operations, hotel and transport, meals and catering supplies, spares and materials supply, helicopter logistics, training and professional services.”

The Pasca A liquids-rich gas field in the Gulf of Papua is being developed by Twinza, an Australian upstream energy firm. The business has been operating in PNG since 2011 and has committed more than K350 million to thoroughly assess the market.

Its creative development strategy and design are now prepared for implementation.

The Pasca A oil platform in the Gulf of Papua. Photo courtesy Twinza Oil

SONK: PAPUA LNG FEED GREEN LIGHT IS GOOD NEWS FOR PNG

Commenting on the recent announcement by TotalEnergies that the Papua LNG joint venture will launch the first phase of front-end engineering and design (FEED) studies for upstream production facilities on the 5.4 Mt/year LNG project that they are operator of, Kumul Petroleum managing director Wapu Sonk was congratulatory.

He said, “As a potential co-venturer in this LNG project, we are really glad that this momentous decision has been made by TotalEnergies and its partners, it is a sign of their faith in the future of Papua New Guinea.”

Mr Sonk noted that studies for the downstream liquefaction facilities were also progressing in line with the overall project schedule, with the objective of launching the integrated FEED in the fourth quarter of 2022.

“The project is targeting a final investment decision (FID) around the end of 2023, which will enable project construction to commence, leading to a projected project startup at the end of 2027. We have been waiting for this good news for a number of years now.”

As the national petroleum company, Kumul Petroleum Holdings will be exercising its right to take up to 22.5% equity in the Papua LNG project, and join the other partners TotalEnergies, ExxonMobil and Santos.

Mr Sonk continued, “We have seen the many benefits that have come about as a result of the ExxonMobil led PNG LNG Project, and I foresee that the lessons learned from that project will enable all Papua New Guinea stakeholders to maximise their various benefits from the Papua LNG development. Papua LNG construction will have large multiplier effects in the economy.”

The decision by Papua LNG to enter FEED would benefit many stakeholders since after the completion of an estimated four years of construction it was planned to then start the construction of the P’nyang LNG Project, which would take another 3-4 years to construct.

“The likelihood of up to eight years of LNG related infrastructure construction means that many nationally owned service industries have the opportunity to develop a firm financial, technical and human resource foundation that will ensure their future in a rapidly industrialising Papua New Guinea.”

Mr Sonk confirmed his belief that LNG developments would underpin the economy of PNG for at least the next two decades, assisting in the roll out of electrification across the country and be the catalyst for downstream processing of petroleum into products such as fertilisers and petrochemicals.

“At Kumul Petroleum we will be playing a continuing role in petroleum developments and also intend to play a greater role in related nation-building projects to ensure that benefits from this sector are spread as widely as possible.”

Kumul Petroleum managing director Wapu Sonk