Papuan Oil Company Saved by

Australian Government

BY means of a special Act, passed at the end of November, the Austra lian Government (Labour) made available another £20,000 of public money to Papuan Apinaipai Petroleum Co. Ltd., which is boring for oil on a small area in Papua, near the Gulf of Papua.

This company was formed by a Mr.

R. Haynes (who had retained a small area when all the rest was abandoned by the oil-boring companies, nearly two decades ago) and by Mr. W. M. Marks, who for a long time was a member of the Commonwealth Parliament. It started operations with £25,000 worth of plant loaned by the Commonwealth Gov ernment as part of its equipment, and with apparently inadequate capital.

When its capital ran out, it asked the then Australian Government for help.

The latter promised £50,000, but insisted that, in relation to the last £20,000 of it, the company should put up £ for £.

The company could not, and the con cern appeared to be in a difficult posi tion when the Labour Government came into power in October.

The position then was that, if the company was not assisted, the Govern ment would lose the £30,000 already advanced, and also the £25,000 worth of plant (which would cost £lO,OOO in trans port if brought from Papua).

As the Commonwealth geological adviser reported that prospects are favourable, and recommended that the Government should advance another £55,000 in order to complete the bore, the Government now is backing the Papuan Apinaipi Co. —but under condi tions which ensure that the Government shall be properly recompensed and rewarded if oil is found.

The company announced on Decem ber 30 that, in view of the changed Pacific situation, the Government had requested it to suspend operations for the present.