The Good Oil May Flow In The Gulf

There were no firm developments in March over the PNG Government decision to ask for a greater share of Bougainville copper profits althoug there were talks between officials and Bougainville executives. The next mov will come when the government gives the company a firm statement on who extra equity or other concessions it requires, and negotiations will folfa from there.

Developments between Kennecott (PNG) Pty Ltd and the governmer over exploitation of the Ok Tedi copper prospect in Western Papua had nc progressed either and there is a possibility of stalemate. The governmen wants the company to go ahead with another multi-million dollar sampl testing programme, but the company wants first a guarantee of financic support to the tune of at least $BB million should the final tests prove satii factory.

Meanwhile, Papua New Guinea may have an oil field on its handi Phillips Oil, which has been drilling in the Gulf of Papua, was reported t , have found oil at two drilling sites. It is currently hoping for a third fin . before it decides to go ahead.

There has been much secrecy but also much activity on the company ’ financial front.