Search For Oil In

Papua

Residents Upset By Shortening

of Staff

From Our Own Correspondent

Moresby, Dec. 6.

RESIDENTS are concerned about re ports that the management of the Australasian Petroleum Co. —the giant organisation that is conducting a search for oil in Papua—is putting off staff by the dozen.

It is stated that the Oroi rig is closing down, after boring to a depth of 5,516 feet. Some people regard this as a sign of a general narrowing of APC’s opera tions.

A few weeks ago, high officials of the Anglo-Iranian Oil Co. and Standard Vacuum Oil Co. were in Papua, looking over the field of search operations; and it was reported at the time that they favoured a policy of concentrating the search at certain points that seemed to offer the best prospects of success. What the local residents call the APC’s “austerity campaign” began about that time.

Story That Good Oil Prospect

Was ‘Killed’

MEANWHILE, in Sydney, on December 7, Mr. E. J. Ward (Australian Minis ter for Territories) said he had strong evidence that a huge oil combine had deliberately frustrated development of an oil find in New Guinea.

“The operations occurred in territory where Australian oil-search companies are not functioning. A foremost topograph ical surveyor and oil technologist, em ployed by the combine, discovered oil bearing country which, from a 2,000 ft. shaft, was productive of oil,” said Mr.

Ward.

“However, he was instructed not to bore deeper than 500 ft.—a depth which the oil combine executives knew would be unproductive of oil in this area. The expert was told by the company to seal the shaft-hole and move expensive equipment on the site to another site

which was the crater of an extinct vol cano.

“He bitterly protested to his employers, pointing out that, first, if he were allowed to proceed he would produce huge quan tities of oil for them, and, secondly, it was a waste of time drilling in the crater. He drilled fruitlessly in the crater and pro tested again to the company, which then summarily dismissed him.”

Mr. Ward said that this man who had had many years’ experience in the oil fields of America, Persia and Burma, is now dead, but letters, written prior to his death, are in existence, protesting against the treatment he had received from the company and the manner in which his efforts to obtain oil had been deliberately frustrated. These letters describe the exact area where the original shaft was sunk.

The Search Will Go On

A SYDNEY authority said on December 8 that there was no suggestion what ever of the abandonment of the oil search in Papua. One great problem there was insufficiency of transport. By reducing the rigs (boring installations) from five to three, the Cos. found it could make better and more economical use of transport. Another factor was that de valuation had automatically made nearly all supplies. 25 per cent, more costly. The most important recent development was the recent decision to increase the issued capital of the Cos. from five to ten million pounds.