PNG Oil Refinery

The benefits of the 40,000-barrels-per-day refinery (near the capital Port Moresby) to Papua New Guinea ("PNG") will be substantial.

1. PNG will become self-sufficient in transport and power-generation fuels, except for a small volume of aviation gasoline (Jet A1).
2. Annual foreign currency savings will total about US$73million.
3. PNGOR is projected to generate US$17million in new direct company tax after the five-year tax holiday.
4. The cost to deliver petroleum products will be reduced allowing the government to raise duties without impact on PNG customers.
5. A power station running on refinery off-gas will supply badly needed electricity to the capital, Port Moresby, at a very competitive price.
6. Direct and multiplier-effect indirect employment will also introduce new technical skills to the PNG workforce.
7. The refinery will be a catalyst for new industries, especially petrochemicals.
8. A PNG fleet of two new 40,000-dwt tankers and a new 20,000-dwt tanker will be operated by a PNG company employing highly experienced management.  The tankers will deliver crude oil to the refinery and distribute petroleum products to PNG and overseas markets.

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