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OSH --WBC 60 Million shares., page-2

  1. 390 Posts.
    Good announcement made by OSH giving details on gas pipeline, employment growth and substantial benefits. Contracts like these should be encouraged as it creates plenty of jobs and growth for the economy.


    HOMEX - Sydney

    ExxonMobil today announced the signing of the Gas Agreement with the
    PNG Government. The Agreement provides the terms and conditions for
    the development of the huge natural gas resources in the Highlands of

    P Botten

    For further information regarding this report please contact:
    Mr Garry Marsden
    Tel: 02 8207 8440
    Mob: 0419 488 122




    Port Moresby - The PNG Gas Project participants, led by Esso
    Highlands Limited, a subsidiary of Exxon Mobil Corporation, today
    signed the Gas Agreement with the State of Papua New Guinea. The
    Agreement sets out the terms and conditions necessary for developing,
    producing and marketing more than six trillion cubic feet of natural
    gas resources in the Southern Highlands of PNG.

    The Gas Agreement follows the signing of the Memorandum of
    Understanding between the State of PNG and Esso Highlands, on behalf
    of the PNG Gas Project Participants, in February 2002.

    The Gas Agreement was signed on behalf of the State of PNG by Sir Moi
    Avei, Chairman of the Gas Committee and the Prime Minister Sir Mekere

    The important elements of the Gas Agreement include:

    * The mechanism for the State of PNG to participate in the Project.
    Under the agreement, the State will seek financing to take 15% to 30%
    equity in the Project's infrastructure.

    * Fiscal stability for the PNG Gas Project.

    * The necessary legal framework to develop the PNG gas resources.

    In March 2002, AGL reached conditional agreement with the Project
    participants on commercial terms to take up to 50 PJ of gas per
    annum, commencing in 2006.

    "Completing the Gas Agreement with the State of PNG and signing AGL
    Wholesale Gas Limited as our first base customer are important steps
    for the PNG Gas Project," said Mr Bill Threlfall, President, Esso
    Highlands and Chairman of the PNG Gas Project Owners Group.

    "That said, the Project is obviously disappointed with the recent
    decision by the Queensland Government to award the Townsville Power
    Station tender to a developer which intends to use coal seam methane
    as the gas supply source.

    "Our attention continues to focus on marketing activities in
    Queensland and South Eastern Australia and we look forward to
    initiating front end engineering and design (FEED), once we receive
    commitment to the project from additional gas customers", concluded
    Mr Threlfall.

    The Project has also today released a report by ACIL consulting which
    sets out the economic benefits that construction of the pipeline
    would bring to Queensland and Australia (see highlights overleaf).

    The PNG Gas Project Participants include ExxonMobil (operator), Oil
    Search, ChevronTexaco, JPP (Japan PNG Petroleum), and MRDC (a PNG
    company representing landowner interests).

    For further information:
    Anna Schulze +61 3 9270 3182 or +61 408 532 589


    PNG Gas Project: Economic Impacts at National, State and Regional
    Level in Australia

    * The introduction of PNG Gas would have a major positive impact on
    the supply of gas to meet emerging market opportunities in

    * During construction, the PNG Gas Project would lead to:

    - An increase in gross economic output of $1,500 million of which some
    $1,280 million will be in Queensland.

    - Net additions to regional income of more than $300 million in the
    form of wages, profits and supplements.

    - Net additions of approximately $700 million to Gross State Product
    (or in other words, value added).

    - For the life of the construction project, there will be an increase
    of 1,490 new jobs and maintenance of 2,235 existing construction
    industry jobs.

    * During a typical operating year, the PNG Gas Project would provide:

    - An increase in gross economic output of $1,620 million per year, of
    which some $1,220 million will be in Queensland.

    - Net additions to regional income of more than $350 million per year
    in the form of wages, profits and supplements ($275 million in

    - Approximately $575 million per year net additions to Gross State
    Product (or value added), of which $425 million will accrue in

    - Maintenance of more than 2,900 full-time jobs, of which 2,200 will
    be in Queensland.

    * The modelling demonstrates that all regions within Queensland would
    benefit as a result of the on-going operations of the PNG Gas
    Project. There would also be substantial benefits arising outside the

    * The results are conservative in that they do not take separate
    account of the economic benefits arising from the construction and
    operation of new projects that would use PNG Gas.

    * Both Commonwealth and State government revenue would be expected to
    increase as a result of the PNG Gas Project. Modelling shows that
    Commonwealth receipts would rise by around $113 million per year in a
    typical operating year, attributable to:

    - $55 million per year from increased GST.
    - $34.8 million per year from increased company tax.
    - $23.3 million per year from increased personal income tax.

    * Queensland State government receipts would be expected to increase
    by between $9 million and $19 million per year through payroll tax
    and mineral royalty payments.

    The full ACIL report is available online at www.pnggas.com
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