New Delhi, July 29 (Inditop.com) Papua New Guinea, a sprawling Pacific Ocean nation of just six million people speaking 850 languages, is inviting India to develop its hydrocarbon resources after the islands struck gas two years ago. It is also keen to forge ties with New Delhi after courting Beijing all these years.
The first ministerial visit from the Oceania country this week has been a long time coming, over 30 years since diplomatic relations were established in 1976.
“It (the delay) is a question that I have been asking – especially since we have similar systems of parliamentary democracy, both are in the Commonwealth and so many of our people are in the rural areas,” Papua New Guinea’s Foreign Affairs, Trade and Immigration Minister Samuel T Abal told IANS in an interview as he concluded his visit.
This year, the minister indicated, Papua New Guinea’s Prime Minister Michael Somare may also make a visit, but the dates were still to be decided.
Lured by its mineral resources, China has an established presence in the former Australian colony, with high investment in mining contracts and infrastructure projects.
For India, the island nation with an area of 460,000 square kilometres – equal to Madhya Pradesh and Tamil Nadu combined – has become an attractive destination as an emerging natural gas supplier.
“We welcome Indian participation in the hydrocarbon area. For us, it is to develop our resources. For you, it is to secure energy needs for the long-term,” Abal said.
Already Indian state-owned importer of liquefied natural gas, Petronet LNG Ltd, has been scouting around for partners in that country. It had ultimately unsuccessful talks with Exxon Mobil but now has begun discussions with InterOil, an integrated private oil and gas firm with licences in Papua New Guinea.
InterOil, which wants to develop its licence with reserves of seven trillion cubic feet of gas to start exports by 2014, is “seriously looking for partners”. “I believe that they (Petronet and InterOil) have already spoken once or twice and I encourage that,” Abal told IANS.
He pointed out that as per law, 22.5 percent of the gas produced was the government’s share.
While the minister reiterated his encouragement for the Indian company, the decision had to be a commercial one with discussions between Petronet, InterOil and Petromin, the national oil and gas firm.
“The second way, which I told the minister (of state for petroleum, Jitin Prasada) here, was for companies to go down to PNG (Papua New Guinea) and seek a licence. If India is seeking to secure its own energy supplies, then it is better to start from the beginning,” said Abal.
He asked Indian companies not just to look at the exploration side but also to consider developing the entire chain from the upstream to the downstream sectors.
“I told Mr (Jitin) Prasada (minister of state for petroleum) that our petroleum minister will be coming soon this year,” said the foreign minister.
During his visit, Abal met Indian government leaders including External Affairs Minister S.M. Krishna, Commerce and Industry Minister Anand Sharma and others. They also promised that Indian help would be available to build up Papua New Guinea’s economic infrastructure, especially in the areas of oil and gas, and hospitality sectors.
rounak