In recent weeks, factually misleading statements and assertions have been made by a particular NGO Activist regarding Ownership, Responsibilities and Transparent operations of Petromin PNG Holdings Limited.
Petromin would like to take this opportunity to clarify any misconception and confusion that this publicity has created amongst our stakeholders and the general public.
Ownership and Legal Structure
Petromin is a company incorporated under the Papua New Guinea Companies Act 1997 (Companies Act) and is 100% owned by the People of Papua New Guinea, as the Beneficial Shareholders.
The People are represented by both the Prime Minister of the day as Trustee Shareholder and the Minister of Treasury of the day as Beneficiary Shareholder. The Trustee Shareholder and the Beneficiary Shareholder do not have any direct or indirect control over the management and affairs of the Company. As with any other Company, powers of the Trustee Shareholder are restricted to the Shareholder powers set out in the Companies Act and the Petromin Constitution.
Furthermore, the Trustee Shareholder is assisted in the exercise of his shareholder powers by three Independent Trust Managers compromising the State Solicitor of PNG, the President of the PNG Law Society and the President of the Certified Practising Accountants (PNG) under the Petromin Trust Deed. The individuals who form the Trust Managers are independently appointed by the respective professional bodies based on the positions they hold.
The Petromin Trust Deed guides the roles and responsibilities of the Trustee Shareholder and Trust Managers of Petromin. It ensures that shareholding in Petromin is always managed in the best interests of the People of PNG. The three independent Trust Managers make independent resolutions in vetting the Board’s investment and management decisions.
The role of the Prime Minister of the day as Trustee Shareholder is not a new corporate structure and has been used in other companies such as Mineral Resources Development Company Limited (MRDC).
The Petromin concept was based on the successful experience of other countries where state-owned companies were created for the benefit of their people such as Petronas in
Malaysia. Some of these companies contribute immensely to the national income of their respective countries.
Does Petromin Generate Revenue for the People of Papua New Guinea?
Since Petromin’s incorporation in March 2007, the company declared K7 million in Dividends for its first two years of operation. Under the Petromin Trust Deed, all Dividends must be paid to the Department of Treasury on behalf of the People of PNG. Petromin has complied by paying all Dividends into the National Government’s revenue account, managed by the Department of Treasury. The Department of Treasury, through normal budget processes, decides how Dividends from Petromin are to be used for the benefit of the People of Papua New Guinea through the Annual Budget process.
Does Petromin Pay Taxes?
There have been allegations that Petromin is not liable for “Taxes, Duties or others”. This is not correct. Petromin is required to pay taxes. As a responsible Corporate Citizen, Petromin and its employees pay their taxes at the normal rates on time. Petromin enjoys no special privileges from the State. Petromin has already paid over K67 million in 2007 and K71 million in 2008 to the State in taxes, bringing the total to K138m. And Petromin will continue to pay its taxes. This is all a matter of public record and details can be independently ascertained from the relevant authorities.
Is Petromin treated differently in the industry?
Petromin is not treated differently from the rest of the companies in the mining and petroleum industry. It was established to hold, manage and maximise benefits to the People flowing from the State’s interests in mining and petroleum projects. To establish Petromin the State’s mining and petroleum assets had to be separated from landowner interests and other non-mining and petroleum interests.
Any provision in the Petromin PNG Holdings Limited Authorization Act 2007 (the Petromin Act) for assets to be transferred to Petromin are consistent with the purpose and intent of creating Petromin; that is to separate landowner interests held by MRDC from those of the State. This was done at the creation of Petromin in 2007 where the State’s interest in Eda Oil Limited was acquired for a consideration by Petromin from MRDC. Other non-mining and petroleum interests held by the Independent Public Business Corporation (IPBC) were not affected. With respect to shares held by IPBC in Oil Search, the State has already decided to use these shares to acquire its equity in the PNG LNG Project. Therefore these were not acquired by Petromin.
Petromin does not garner any special treatment from State regulators or within the industry. Any commercial investment is made purely on the basis of Petromin’s balance sheet, after required due diligence has been carried out and on commercial terms. The Petromin Act and Petromin Trust Deed ensure that investment decisions are made strictly in compliance with governing laws and investment principles.
Purchase of Tolukuma Gold Mines
The purchase price for the Tolukuma Gold Mine is also a matter of public record, which can be confirmed through a company search of Tolukuma Gold Mines Limited at the Investment Promotion Authority. Since acquiring the Mine, Petromin has (together with the 600+ employees at Tolukuma and with the moral support of the Goilala people) stabilized cost and increased production.
In its short history as operator of the mine, Petromin has turned the Mine around through increased efficiency from a Company heavily in debt into a going concern within the past eighteen months. It was purchased at an opportune time and no public funds were used to purchase the Mine. Tolukuma is worth a lot more today then when it was purchased.
Further, the Mine was bought from a publicly listed Australian company and that company has also reported the acquisition price to the Australian Stock Exchange.
Does Petromin practice Transparency?
For us to participate and drive the Company in the interest of our shareholders, we strive to provide timely, meaningful, reliable disclosures about our financial operations, including performance to the People of Papua New Guinea and other stakeholders.
Although Petromin is outside of the Government’s normal systems of checks and balances (accounting and audit), we are subject to the Companies Act, which has higher accounting, audit, and reporting requirements as well as a stricker penalty regime. The company has therefore developed very high transparency and governance standards, statutory and otherwise.
Details of financial and business performance are presented to the public, through the Trustee Shareholder, each year during the Annual General Meeting. The AGM is witnessed by various stakeholder representatives, including the State, regulators, NGO’s, tertiary institutions and the General Public. Our financial records are audited by an international accounting firm each year and are registered as a matter of public record at the Investment Promotion Authority. Annual audit is a requirement of the Petromin Constitution and the Companies Act and to date, Petromin is fully compliant.
You can find scanned copies of our audited financial statements available on our website (www.petrominpng.com.pg ) together with information on our shareholding structure. Our shareholding structure can be independently confirmed by undertaking a company search of the public records at the IPA.
Also you can visit our website www.petrominpng.com.pg to learn more about the company. You can also download our Financial Report from the website.
Protecting our Commercial Interests
Petromin is a company and any misleading statements can undermine our business activities and bring injury to our standing or commercial interests. Furthermore, circulation of any misleading statements by any medium, whether by the author or otherwise, may give the Company an action in damages. We therefore urge all our stakeholders including the general public not to be easily misled but instead conduct independent searches on our website and at the Investment Promotion Authority, instead of purposely inflicting injury to our reputation and commercial interests.
WE THEREFORE ADVISE THAT THE PLANNED RALLY ON 5TH NOVEMBER, 2009 IS BASED ON DECEPTIVE AND MALICIOUS INFORMATION AND SHOULD NOT BE PERMITTED TO TAKE PLACE.
Joshua R. Kalinoe, CSM, CBE
Managing Director & CEO
Showing posts with label Petromin. Show all posts
Showing posts with label Petromin. Show all posts
Sunday, November 1, 2009
Monday, October 22, 2007
Petromin Signs MOU
JAPAN is looking at Papua New Guinea as the most promising new supplier to the Japanese LNG (liquefied natural gas) market.
LNG Japan Corp recently signed a memorandum of understanding (MOU) with Petromin PNG Holdings Ltd in Port Moresby to form the basis of a strategic partnership.
Through this partnership as presented by company general manager Yasushi Tashiro, LNG Japan aims to:
*Arrange the necessary funding for Petromin to participate in the LNG projects from its own sources;
*Provide technical advice and enhance the capacity of Petromin to participate in LNG projects;
*Study to identify the project structure to maximise the benefit for PNG;
*Support Petromin in commercialising its share of natural gas, including marketing, LNG transport and project finance;
*Support Petromin’s human resource development; and
*Support professional skills and experiences relating to the development of LNG to be transferred to PNG.
LNG Japan president Kenichi Yonezawa said the company was committed to bringing about the materialisation of the LNG project by utilising their knowledge and experience in the LNG industry for the benefits of PNG.
“We will propose a training programme for the Petromin employees to develop skills, providing opportunities to become acquainted with the companies in LNG industry,” Mr Yonezawa said.
Joshua Kalinoe, Petromin managing director, said the MOU was an outcome of a series of meeting between LNG Japan and Petromin.
He said the company had visited the country and met with a number of Government departments, including Petroleum and
Energy, and upon visiting Petromin, introduced their business and interest of pursuing commercial opportunities with Petromin.
“As a new company, we need strategic partners to, among other things, share information, technology and skills transfer on the back of a commercial relationship,” Mr Kalinoe said.
He said the MOU would give both LNG Japan and Petromin the basis to proceed on any future specific business partnerships, especially in LNG.
He added Japan had the market and well-established infrastructure for LNG with a reserve of investment funds that Petromin hopes to access through strategic partnership arrangements with corporate Japan.
LNG Japan Corp recently signed a memorandum of understanding (MOU) with Petromin PNG Holdings Ltd in Port Moresby to form the basis of a strategic partnership.
Through this partnership as presented by company general manager Yasushi Tashiro, LNG Japan aims to:
*Arrange the necessary funding for Petromin to participate in the LNG projects from its own sources;
*Provide technical advice and enhance the capacity of Petromin to participate in LNG projects;
*Study to identify the project structure to maximise the benefit for PNG;
*Support Petromin in commercialising its share of natural gas, including marketing, LNG transport and project finance;
*Support Petromin’s human resource development; and
*Support professional skills and experiences relating to the development of LNG to be transferred to PNG.
LNG Japan president Kenichi Yonezawa said the company was committed to bringing about the materialisation of the LNG project by utilising their knowledge and experience in the LNG industry for the benefits of PNG.
“We will propose a training programme for the Petromin employees to develop skills, providing opportunities to become acquainted with the companies in LNG industry,” Mr Yonezawa said.
Joshua Kalinoe, Petromin managing director, said the MOU was an outcome of a series of meeting between LNG Japan and Petromin.
He said the company had visited the country and met with a number of Government departments, including Petroleum and
Energy, and upon visiting Petromin, introduced their business and interest of pursuing commercial opportunities with Petromin.
“As a new company, we need strategic partners to, among other things, share information, technology and skills transfer on the back of a commercial relationship,” Mr Kalinoe said.
He said the MOU would give both LNG Japan and Petromin the basis to proceed on any future specific business partnerships, especially in LNG.
He added Japan had the market and well-established infrastructure for LNG with a reserve of investment funds that Petromin hopes to access through strategic partnership arrangements with corporate Japan.
Petromin Signs MOU
JAPAN is looking at Papua New Guinea as the most promising new supplier to the Japanese LNG (liquefied natural gas) market.
LNG Japan Corp recently signed a memorandum of understanding (MOU) with Petromin PNG Holdings Ltd in Port Moresby to form the basis of a strategic partnership.
Through this partnership as presented by company general manager Yasushi Tashiro, LNG Japan aims to:
*Arrange the necessary funding for Petromin to participate in the LNG projects from its own sources;
*Provide technical advice and enhance the capacity of Petromin to participate in LNG projects;
*Study to identify the project structure to maximise the benefit for PNG;
*Support Petromin in commercialising its share of natural gas, including marketing, LNG transport and project finance;
*Support Petromin’s human resource development; and
*Support professional skills and experiences relating to the development of LNG to be transferred to PNG.
LNG Japan president Kenichi Yonezawa said the company was committed to bringing about the materialisation of the LNG project by utilising their knowledge and experience in the LNG industry for the benefits of PNG.
“We will propose a training programme for the Petromin employees to develop skills, providing opportunities to become acquainted with the companies in LNG industry,” Mr Yonezawa said.
Joshua Kalinoe, Petromin managing director, said the MOU was an outcome of a series of meeting between LNG Japan and Petromin.
He said the company had visited the country and met with a number of Government departments, including Petroleum and
Energy, and upon visiting Petromin, introduced their business and interest of pursuing commercial opportunities with Petromin.
“As a new company, we need strategic partners to, among other things, share information, technology and skills transfer on the back of a commercial relationship,” Mr Kalinoe said.
He said the MOU would give both LNG Japan and Petromin the basis to proceed on any future specific business partnerships, especially in LNG.
He added Japan had the market and well-established infrastructure for LNG with a reserve of investment funds that Petromin hopes to access through strategic partnership arrangements with corporate Japan.
LNG Japan Corp recently signed a memorandum of understanding (MOU) with Petromin PNG Holdings Ltd in Port Moresby to form the basis of a strategic partnership.
Through this partnership as presented by company general manager Yasushi Tashiro, LNG Japan aims to:
*Arrange the necessary funding for Petromin to participate in the LNG projects from its own sources;
*Provide technical advice and enhance the capacity of Petromin to participate in LNG projects;
*Study to identify the project structure to maximise the benefit for PNG;
*Support Petromin in commercialising its share of natural gas, including marketing, LNG transport and project finance;
*Support Petromin’s human resource development; and
*Support professional skills and experiences relating to the development of LNG to be transferred to PNG.
LNG Japan president Kenichi Yonezawa said the company was committed to bringing about the materialisation of the LNG project by utilising their knowledge and experience in the LNG industry for the benefits of PNG.
“We will propose a training programme for the Petromin employees to develop skills, providing opportunities to become acquainted with the companies in LNG industry,” Mr Yonezawa said.
Joshua Kalinoe, Petromin managing director, said the MOU was an outcome of a series of meeting between LNG Japan and Petromin.
He said the company had visited the country and met with a number of Government departments, including Petroleum and
Energy, and upon visiting Petromin, introduced their business and interest of pursuing commercial opportunities with Petromin.
“As a new company, we need strategic partners to, among other things, share information, technology and skills transfer on the back of a commercial relationship,” Mr Kalinoe said.
He said the MOU would give both LNG Japan and Petromin the basis to proceed on any future specific business partnerships, especially in LNG.
He added Japan had the market and well-established infrastructure for LNG with a reserve of investment funds that Petromin hopes to access through strategic partnership arrangements with corporate Japan.
Petromin acquires Eda Oil for K40m
Eda Oil Ltd, formerly the subsidiary of the Mineral Resource Development Corporation has been transferred along with its assets to Petromin PNG Holdings.
This was Petromin’s first business transaction since its inception.
Eda Oil Ltd holds 20.5% of the State’s interest in the PDL 5 Moran petroleum project in Southern Highlands with a total asset value of more than K270 million.
Petromin chairman Brown Bai said the transfer was a milestone for the company and was the first of many commercial transactions for Petromin as it builds its asset base to deliver its mandate.
“We have truly begun this process with the acquisition of the State’s interest in the Moran project through the purchase of Eda Oil Ltd and I want to assure our stakeholders that we will add value to this asset,” Mr Bai said.
Mr Bai stressed that while Petromin, through its Act, was entitled to acquire State assets in current and future mining and petroleum projects, the company had no special protection from the State with respect to exercising the State’s option to participate in any projects.
In officiating at the transfer, Prime Minister Sir Michael Somare praised both MRDC and Petromin for successfully concluding the transfer, consistent with the intentions of government to have all State owned assets in mining and petroleum held by Petromin.
“ The successful acquisition of Eda Oil Limited by Petromin for a total consideration of K40m gives me the satisfaction that the State-owned companies can work together in achieving objectives of their shareholders, the people of PNG.”
Sir Michael reflected back on the sale of Orogen Mineral Ltd which, he noted, was “ruthlessly sold for a few pennies” in 2002 and as such Papua New Guineans have remained rent collectors.
“And that’s the ugly face of complete privatisation – ownership and revenue gains are not maximised and transparency and fairness on the value of our resources cannot be guaranteed.”
This was Petromin’s first business transaction since its inception.
Eda Oil Ltd holds 20.5% of the State’s interest in the PDL 5 Moran petroleum project in Southern Highlands with a total asset value of more than K270 million.
Petromin chairman Brown Bai said the transfer was a milestone for the company and was the first of many commercial transactions for Petromin as it builds its asset base to deliver its mandate.
“We have truly begun this process with the acquisition of the State’s interest in the Moran project through the purchase of Eda Oil Ltd and I want to assure our stakeholders that we will add value to this asset,” Mr Bai said.
Mr Bai stressed that while Petromin, through its Act, was entitled to acquire State assets in current and future mining and petroleum projects, the company had no special protection from the State with respect to exercising the State’s option to participate in any projects.
In officiating at the transfer, Prime Minister Sir Michael Somare praised both MRDC and Petromin for successfully concluding the transfer, consistent with the intentions of government to have all State owned assets in mining and petroleum held by Petromin.
“ The successful acquisition of Eda Oil Limited by Petromin for a total consideration of K40m gives me the satisfaction that the State-owned companies can work together in achieving objectives of their shareholders, the people of PNG.”
Sir Michael reflected back on the sale of Orogen Mineral Ltd which, he noted, was “ruthlessly sold for a few pennies” in 2002 and as such Papua New Guineans have remained rent collectors.
“And that’s the ugly face of complete privatisation – ownership and revenue gains are not maximised and transparency and fairness on the value of our resources cannot be guaranteed.”
Thursday, August 16, 2007
PNG Accident & Emergency Units Need Help
By Jaive Smare Pic: Thanks....Treasurer for the PNG Women Doctors Association Dr Helen Emang accepts cheque from Petromin's Senior Community Affairs Officer while Dr Evelyn Lavu, President of the Association looks on.
The Accident & Emergency Unit of hospitals across Papua New Guinea lack many basic equipment that could ease the suffering and prevent the possible deaths of patients who arrive there.
President of the Women Doctors Association of Papua New Guinea Dr Evelyn Lavu said the A&E unit are the primary care department for hospitals, however because A&E units of hospitals nationwide lack vital equipment such as defibrillators, automatic ventilation and CPR machines, oxygen, intravenous lines, fluids and emergency drugs, patients ultimately suffer.
In order to rectify this situation, the association has been campaigning since June this year to raise funds for the purchase of necessary A&E equipment for all hospitals in the country.
The association recently campaigned for three years to raise awareness and funds for radiotherapy re-establishment in PNG.
Radiotherapy has been absent from the country for over 10 years after the Radiotherapy machine at the Angau Memorial Hospital in Lae, Morobe Province broke down.
This has meant that many cancer victims have died without radiotherapy treatment that could have saved their lives.
In the end, the association’s campaign raised several millions of kina and secured government support from health department and a K3 million allocation in the national supplementary budget (2007) for the re-establishment of the Radiotherapy Unit at Angau Hospital.
“We were so happy to see the supplementary budget with the commitment by the Government towards the re-establishment of the Radiotherapy in Angau Memorial Hospital.” Dr Levu said.
Now the association is turning its focus on the A&E Units.
Dr Levu made her comments when she was presented with a K1,500.00 cheque from Petromin PNG Holdings Ltd.
The cheque was presented by Petromin’s Acting Senior Community Affairs Officer, Mr Aria Pula on Monday August 17.
Mr Pula said Petromin was in its start-up phase but in the future it will become more involved with associations such as the PNG Women’s Doctors Association.
Mr Pula encouraged everyone in the country to support the work of the PNG Womens Doctor Association.
If you would like to help the PNG Women Doctors Association contact Dr Levu through email: evelynlavu@daltron.com.pg
If you would like to help the PNG Women Doctors Association contact Dr Levu through email: evelynlavu@daltron.com.pg
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