Oil In Papua?
pp. 57-58 · Read in the full issue
Three Companies Have Permits To Search
T'HE search for oil in Papua and the Mandated Territory of New Guinea is being intensified and the Common wealth Government has announced that a sum not exceeding £250,000 is avail able to assist the search in those terri tories.
This represents the extension of the search that is being carried on in Dutch territories (East Indies and Dutch New Guinea) by American and Japanese oil interests.
The Standard Oil Company, of Cali fornia, has obtained a concession from the Dutch Government of 1,482,000 acres for oil exploitation in Sumatra. This Standard Oil Co. controls the Netherlands Pacific Petroleum Co.; and the latter holds a 20 per cent, interest in the Netherlands New Guinea Petroleum Company. The latter company, it is understood, is supported also by the Dutch Shell Co. and Pan Pacific Oil Co., and it is carrying on an active search for oil at the present time in Dutch New Guinea.
It is reported that, as a result of this oil search, oil wells have been found by drilling at Bongu, which is a few miles west of the border between Dutch New Guinea and Papua.
Meanwhile, the Japanese are securing supplies of new oil from three islands in the Dutch East Indies —Borneo, Sumatra, and Java. It is reported that
a Japanese oil combine with a capital of about £3,000,000 has been formed by the Mitsui, Mitsubishi, and Sumitomo in terests; and that this combine is eagerly seeking concessions to enable the oil search to be prosecuted in the Dutch islands further south.
The new ordinances passed in Papua and New Guinea allow encouragement to be given to British interests in the shape of concessions over large areas of coun try, and subsidies. Either Administration is empowered to impose conditions, such as to assure that the investigations shall be carried out expeditiously and satisfac torily. Following such investigations, permit-holders will be entitled to select licence areas, each up to 250 square miles.
Five such licenses (total area, 1250 square miles) can be granted to any one permit holder, subject to the approval of the Petroleum Advisory Board and the Minister.
Upon discovery of oil in paying quan
titles, and resultant proclamation of an oilfield, the Administrator would be em powered to grant leases of an area from eight to 20 square miles, not more than five of such leases going to any one qualified person, plus three reward leases in certain circumstances.
The “Petroleum Oil Search Act, 1936,” makes a first appropriation of £250,000 on a £1 for £1 basis to assist private concerns in drilling for oil on approved locations. Application for a permit is submitted to the Legislative Council in Rabaul or Port Moresby, after submis sion to the local Petroleum Advisory Board. After the application' is approved by the Legislative Council, it is then submitted to the Minister for Territories in Canberra for final approval, and settle ment of terms as to cash guarantee and specific performance preliminary to issue of the permit.
Three Permits Issued In Papua
It was announced in Canberra at the end of August that three permits had been issued to companies to prospect for oil in Papua. They are as follows: Papua Development Co. Ltd.— Permit to prospect for petroleum over 20,000 square miles in the Western and Delta Divisions.
This company was registered in Port Moresby on July 9, and is reported to be connected with one of the major oil companies.
Island Explorations Pty. Ltd. —Permit to prospect for oil over 20,000 square miles in Papua. This concern was registered in Melbourne on June 16 with a capital of £50,000. Directors are Hugh Hamilton, Senator J. D. Millen, W. A. Ince, and J.
C. Blair. Mr. L. B. Tomlins is secretary.
Some of the directors are also associated with the Vacuum Oil Co.
Oriomo Oil Ltd. —Permit to prospect for oil in an area of 12,000 square miles.
Oriomo Explorations Ltd. was formed in Sydney some time ago.