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PNG’S TRANS WONDERLAND SIGNS $192 MILLION DEAL ExxonMobil contract for gas project transport

By Mahammad Bashir PORT MORESBY, Papua New Guinea (PNG Post-Courier, Oct. 8, 2010) – In a milestone event, Papua New Guinea’s first and only landowner company yesterday signed a 500 million kina [US$192 million] contract to provide a complete transportation package for ExxonMobil in the PNG LNG project.

The momentous event signified the recognition of a home-grown company which started with 50 pieces of equipment over 12 months ago in a highly competitive contractual work by a world class operator in ExxonMobil.

ExxonMobil demands the best and Trans Wonderland Ltd (TWL) with joint venture partners Agility Logistics were awarded the contract based on those standards.

Petroleum and Energy Minister Willaim Duma, SHP Governor Anderson Agiru and State Minister Moses Maladina all hailed the signing as significant achievement for the country.

TWL and Agility stated that through their joint venture agreement, they will provide complete logistics and transportation requirement for the PNG LNG project servicing the northern route.

This is made possible through an enabling Frame Agreement signed between Esso Highlands Limited (EHL) and Agility yesterday.

The signing was witnessed by Mr Agiru, Petroleum and Energy Minister William Duma, Minister assisting the Prime Minister Moses Maladina, MP John Kekeno and executives of EHL, Agility and TWL. Through the three-year Frame Agreement, Agility will provide an array of logistical services. The pact was signed by Agility Director, John Beattie, and by the EHL Development Support Senior Project Manager Mark Hackney. Mr Beattie said:" The signing of this agreement signifies Agility’s long term commitment to the PNG LNG project in cooperation with our Trans Wonderland partners".

The logistics services covered include northern logistics base (NLB) that provides a central base of operations for the receipt, storage and processing of goods and equipment to be transported to project sites and use of a designated fleet of trucks from the national Lanco trucking companies to transport project freight to sites. NLB will be located in Lae near 11-mile that is expandable to 250,000m2. Site facilities will include a bonded area for customs/quarantine clearance, offices, accommodation, warehouses, materials handling equipment and lay-down areas.

Trucking resources and operations will be provided through a joint venture partnership between Agility and TWL. Lanco trucking companies contributing prime movers, trailer, drivers, and mechanics include: TWL, Mapai, Traisa, and Kutubu Transport

Mr Larry Andagali, Managing Director of TWL said: " Our joint venture agreement with Agility marks an historic event for landowners and it demonstrates the importance of national content. This will strengthen our ability to provide the highest quality logistics service to the world class PNG LNG project".

The PNG LNG project is a culmination of over 20 years of trials, errors and attempts by many companies and individuals to get a gas project going.

Mr Andagali was one man that was involved in the oil and gas industry in various capacities over 20 years.

BP discovered the Hides Gas field and mooted the idea of a LNG project in 1996 with the gas to flow through a northern route pipeline to Wewak but it never eventuated.

Chevron Niugini later took over the challenge to sell dry gas to Gladstone in Australia but it all fell apart.

Even ExxonMobil mooted the idea of selling gas to Queensland through Midland oil and gas which also did not see the light of day.

The current PNG LNG project is the fourth LNG project that has been attempted in this country.

Mr Andagali was a very important player in the project by leading landowners and was the first man to sign the UBSA in Kokopo and the subsequent LBBSA.

With no clear definition on national content plan, Mr Andagali and his directors brain stormed in close door for a week and decided to wear their entrepreneurial caps instead of their landowner and political caps.

TWL is a direct result of that change of mindset and has been thriving on the motto; "getting the basics right and doing the little things well.

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