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29 December 2012


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My theory is that from Darwin the US will create a zone of influence in the southern part of PNG which includes it's prized investment the LNG project.

While the Chinese will take the northern half because of the Ramu Nico Mine.

Also the largest deposit of oil and gas is situated in the northern part.

At the moment the Chinese have knowledge that the deposit is there under their noses so they are keeping a close eye.

Harry, PNG is highly prospective for new discoveries, and exploration licence applications have been rapidly increasing.

According to the PNG Chamber of Mines & Petroleum, there are currently 71 Petroleum Prospecting Licenses and 15 applications pending. See

See also the back of the MRA bulletin for all resources license applications, licenses granted and renewed in the six months to end of 2011

Don't forget the remarkably frank (and perceived by the Chinese as aggressive) comments by Secretary of State Hilary Clinton with regard to the competition from China for resources in PNG - specifically oil and gas.

I'm sure this has nothing to do with a growing US military presence in Darwin. Or Exxon's decision to hire private military firm 4GS (think Sandline, Executive Outcomes, etc) to provide security to its project in PNG.

A foreign mili­tia company operating in PNG is not there to befriend the natives - it is there to protect Exxon's interests - and militia companies have a certain reputation for achieving their client objectives, regardless of the collateral damage.

Don't look to Australia for solace. Our resources companies are falling over themselves to partner with the Chinese, with some arguably intent on operating as fronts for Chinese business interests.

Couple that with the fact that most Chinese companies already in and coming to PNG are government owned, and not without their own security personnel - we have a recipe for 'interesting times' ahead in the land of the unexpected.

Bernard wrote "China has discovered a much larger deposit of gas and oil, bigger then the LNG project in the Southern Highlands"
Some clarification please?

I was not aware that China had been carrying out exploration or drilling programs in the Highlands or other parts of PNG.

I also was lead to believe that most of the exploration licenses issued by the government were done many years ago and covered most of the areas showing oil/gas potential.

Is this a recent event or have the Chinese merely bought licenses from the main players?

Is so they would want to be careful as their dreams may turn out to be nothing more than salted deposits.

I doubt Australia will be a good neighbour and help PNG by protecting it from the US and China.

Australia as we all know is America's deputy sheriff in the Pacific.

So who will PNG trust and run to for help and honest advice? Definitely not Australia.

Who will be our best ally in this war for resources?

Can a minnow like PNG stand up against these giants?

China has discovered a much larger deposit of gas and oil, bigger then the LNG project in the Southern Highlands.

This new discovery will intensify the competition for natural resources. We might end up having different zones of influence where America will control one particular region and China the other.

So where does Australia fit in?

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