The Kapuna Rural Hospital in Gulf Province has achieved a significant milestone with its recent upgrades funded by the Incentive Fund Project. The hospital was formally recognized as a Level 4 Health Facility by the National Department of Health (NDOH), with the Certificate of Accreditation approved on November 8, 2024.

Serving a catchment area of 15,000 people in the Baimuru LLG, as well as the eastern regions of Kikori and Ihu LLG, it was the recommendation of the NDOH National Standards and Clinician Team, after they performed a general health assessment of the facilities in September 2023, to be certified a Level 4 Health facility.   

A cornerstone of public health services for these communities, the upgraded facilities now include a new emergency centre, dental clinic, birthing suites, operating theatres, and 24-hour solar power, among other amenities, ensuring that the rural hospital can meet the growing needs of its community.

Medical Superintendent for Kapuna Dr Valerie Archer, on the accomplishment quoted the Bible verse, Nehemiah Chapter six verse 16, how this work has been done with the help of our God. She further acknowledged the hard work of the volunteers from the Netherlands, Brazil, United States and New Zealand and most importantly, the local staff, throughout all the years of physical work.

“Looking back, it was a big undertaking for us but I believe that God gave us the right time to rebuild. A time when Curtain Brothers had a spare pontoon, a time when TotalEnergies were able to help with regular logistics. A time when we had the right people willing and able to help us,” says Dr Valerie.

“May the people of Gulf benefit from this new status, may we all benefit and may it point in the direction to a brighter future for the people of Gulf,” she added.

TotalEnergies EP PNG Limited, as operator of the Papua LNG project, supported the Kapuna Rural Hospital team with the Land Title, logistics for construction materials from Port Moresby to Kapuna and with logistics for National Department of Health Assessment team to Kapuna.

To date, the Project has supported Kapuna through the training of 200 Tuberculosis volunteers, 60 community health workers at Kapuna through the installation of a new sanitary mess and TB ward.

Marking a new era in healthcare delivery for the region, the upgrade of Kapuna Rural Hospital is a testament to the collaborative efforts of various stakeholders, including the Papua New Guinea-Australia Partnership’s Incentive Fund, Gulf Christian Services, and other partners. 

The recognition as a Level 4 health facility, underscores the hospital’s commitment to providing high-quality healthcare and its readiness to handle more complex medical cases, benefiting the entire population it serves.

On day three of the 2024 Papua New Guinea Investment Week in Sydney, TotalEnergies EP PNG Limited (TotalEnergies), Operator of the Papua LNG Project, had two representatives engage in lively panel discussions on sustainable climate transition investments and strategies to empower women in the workplace.  

Left to Right: Adrian Enright, CEO Tasman Environmental Markets; Marie-Alix Dognin HSSE Director TotalEnergies; Debra Sungi, Acting Managing Director CEPA; Katharine Tapley, Head of Sustainable Finance ANZ and James Murphy, Head of Sustainability, Santos. PC: Daniel Lavaiamat

She also talked to existing initiatives around renewable energy, such as the solarization of TotalEnergies buildings, the marketing – at a subsidized price – of solar lamps in remote areas of the Gulf Province, and the provision of solar panel for local communities in Kuriva, Central Province. She emphasized that electrical trains had been introduced in the Papua LNG project design to allow, in the future, the use of solar energy for electricity generation on the Project.  

Head of Acceptability and External Communications for TotalEnergies, Hannah Pepson, participated in the “Empowering Workplaces – Strategies for Gender Inclusion and Business Success in PNG” panel. She touched upon the challenges women in Papua New Guinea face within the industry and the misconceptions and biases around women obtaining positions of power.

“TotalEnergies is deeply committed to fostering an inclusive and diverse workplace and has implemented several innovative culture change solutions to address bias and promote equality. We continue to foster and promote Bel Isi initiatives as a corporate subscriber,” she said. She stressed that everyone has a responsibility to help contribute to and create the kind of work environment where they can thrive.

Left to Right: Vele Rupa, GM Corp Affairs Steamships; Ellen Maynes, IFC Moderator; Marcia Pokapin, Regional Manager Downstream TWM Group; Hannah Pepson, Head of Acceptability & External Comm TotalEnergies; Isabel Macguire, Country Manager Swire PNG; David Cusik, GM Sales & Ops Rhodes PNG. PC: Daniel Lavaiamat

He dedicated the award to the people and communities in and around in the Project Area of Influence, acknowledging their vital role. Our collaborative efforts have significantly enhanced health and safety standards at both the Upstream Logistics site and the Port Moresby office.

TotalEnergies has undertaken several holistic health and safety initiatives, such as the introduction of the Hanamoa Kad, a safety tool used to stop and report unsafe practices.

TotalEnergies has also installed a modern containerized pre-employment medical screening facility in a remote area of the Gulf Province and provided significant medical support to local communities,

including the construction of aid posts and health worker houses and providing medical consultations at its logistics base along the Purari River. 

From November 27 to November 29, 2024, a total of 68 men and women, celebrated the successful completion of the Advanced Category of their Adult Literacy Program, within the villages of Subu 1, Subu 2, Poroi 2 and Kaevaria, in Baimuru LLG, Kikori District.

TotalEnergies Community Development Field Supervisor Michael Leahy, whilst speaking at the graduation ceremonies, stressed the importance of community ownership and participation in programs such as these, which add value and empower young men and women with life skills.

“These sort of partnership programs, are left in your hands to be looked after. So if you look after and take ownership of them, they will benefit you in the long run for generations to come,” he stressed.

After reading, writing and basic numeracy skills were identified as a key priority, during ongoing consultations with the communities, TotalEnergies signed a Memorandum of Understanding with the Gulf Provincial Education Division and NVS, to introduce the Adult Literacy program throughout seven villages within the Project Area of Influence.

Grade six school leaver, 72-year-old Ariki Eria from Kaevaria village, expressed his joy at being able to read and write in Tok Pisin through the program, proving that one is never too old to learn.

“I was born in 1952. I left school after grade six and wasn’t encouraged to continue my schooling. Now, after all this time, I am happy that I am able to speak, read and write in Tok pisin,” he said.

The first program of its kind in the province, the Adult Literacy Program saw to a community volunteer tutor volunteer to support the Wabo Primary School in Wabo and Evara Elementary school.

As of December 2023, a total of 72 adult learners graduated from the Advanced category of the Adult Literacy training facilitated by NVS in the villages of Wabo and Evara. With the addition of the 68 graduands, this brings the current total of certified Adult Learners from Gulf province to 140.

The National Volunteer Service is an organisation that provides opportunities for individuals and groups to extend voluntary services across all sectors, in the implementation of social welfare and development programs across all sectors.

To date, the NVS Lead Adult literacy trainer Mr Yasu Opune, has trained 19 community volunteer tutors from the seven villages, 10 of which, have now been identified within their own respective villages, to be the community adult literacy trainer.

L-R: TotalEnergies EP PNG Limited (TotalEnergies) Head of Acceptability and External Communications Hannah Pepson, TotalEnergies Exploration and Production Asia-Pacific Vice President Country Delegate for Papua New Guinea Aymen Yahyoui, Health, Safety, Sustainability and Environment Director Marie-Alix Dognin and Public Affairs Manager Richard Kassman

TotalEnergies Exploration and Production Asia-Pacific Vice President Country Delegate for Papua New Guinea, Aymen Yahyoui, provided an update on the upstream activities of TotalEnergies in the Country, at the second day of the PNG Investment Week Conference in Sydney, Australia on December 10, 2024.

As mentioned in April through a Joint Statement of the Independent State of Papua New Guinea and TotalEnergies, together with Joint Venture partners ExxonMobil PNG, Santos Limited, JX Nippon and stakeholders, the Papua LNG project keeps working with contractors to obtain commercially viable EPC contracts towards FID (Final Investment Decision), now expected in 2025. 

Through such strategic partnerships and sustainable initiatives, the Project will maintain its full support to the local population of Gulf Province and will continue to demonstrate the commitment of TotalEnergies to the well-being of the people of Papua New Guinea.

TotalEnergies has made significant strides in addressing educational challenges and promoting long-term development in the region.

Papua LNG has a focus on developing the skills and competencies of all Papua New Guineans to enhance their employability for future projects and to contribute to the wider talent pool. 

“Papua LNG is actively investing in multiple scholarship programs for national students enrolled in technical institutions and we are proud of our continued contribution to local communities, institutions and stakeholders and recognize the positive impact these efforts have in assisting students learn, grow and develop,” he said.

The conference was a great platform to share TotalEnergies’ commitment to Papua New Guinea as a worthy and attractive investment destination, providing relevant updates about Papua LNG and introducing new exploration prospect, PPL 576 Mailu – 1.

Set to be the country’s first Deep Offshore well, this joint venture project saw to the introduction of Malaysian Global Energy giant Petronas into Papua New Guinea, with teams now progressing on the procurement of Long Lead items and a Rig slot. The well is expected to be drilled in the second half of 2025.

Could Papua New Guinea’s second gas project get the green light in 2025? In an exclusive interview with Business Advantage PNG, Arnaud Berthet, Managing Director of TotalEnergies EP PNG, outlines the Papua LNG project timeline and the activities left to complete on the road to FID.

“Papua LNG is perfectly located to serve the Asian markets, [being] a short distance from Japan, China and South Korea.”

The Papua LNG project is moving closer to a final investment decision. Credit: TotalEnergies

A final investment decision (FID) on the Papua LNG project is likely in the next 12 months, according to TotalEnergies EP PNG Managing Director Arnaud Berthet.

“A lot of activities need to be performed, but these were presented to the authorities last week and it is doable, so we are very confident in delivering FID within 2025,” Berthet said in a wide-ranging interview with Business Advantage PNG.

Papua New Guinea’s second gas project was expected to reach an FID in early 2024, but it was postponed in April because of what Berthet called an “absolutely unacceptable” level of capital expenditure proposed by engineering, procurement and construction (EPC) contractors.

As a result, TotalEnergies and its joint venture partners are preparing to reopen bidding to a larger group of contractors, with offers expected in the second quarter of 2025.

Berthet said this would reflect the growing number of qualified EPC contractors for oil and gas projects – particularly in Asia.

“We have found that the quality gap that we had some decades ago no longer exists,” he said, adding that “the more competitors we have, the more we will have the capability to bring the price down.”

Early works on hold

Berthet confirmed that early works were paused in September after “more than two years”, a move he said was necessary in order to focus on immediate priorities

Securing buyers and finance

According to Berthet, TotalEnergies is focusing on four simultaneous “workstreams” in its bid to achieve FID in 2025 – of which design optimisation and the re-bid phase is one.

Securing buyers for the 5.6 million tonnes per year of LNG that the project is expected to produce is a second workstream – with Southeast Asia as the target market.

“This is one of the main advantages of this project. It’s perfectly located to serve the Asian markets, [being] a short distance from Japan, China and South Korea,” Berthet said.

“We can offer our customers very good prices from within a country [PNG] which has proven to be effective in delivering gas to these customers.”

Additionally, the project will need financing, which Berthet confirmed will come from a combination of debt and equity. He noted that Papua LNG will be fully compliant with the International Finance Corporation’s Sustainability Framework, including a commitment to the highest standards of environmental and social performance.

“We are now considering other opportunities for the landowner company to be more embedded in the project.”

Sharing the benefits with PNG

The fourth workstream is obtaining a Petroleum Development Licence. This will itself require the completion of four different processes: an environmental permit, involving the Conservation & Environment Protection Authority (CEPA) and other relevant bodies; the development scheme, which requires approval from the Ministry of Petroleum; a national content plan, which Berthet said had been unchanged since its approval in September 2023; and the development forum, which will map out a benefit-sharing agreement with landowners.

Jerilai Pujari Holding Limited (JPHL), the landowner company TotalEnergies is supporting, has already signed joint ventures with other local companies, covering the provision of security, camp management, equipment rental and labour, Berthet noted.

“We are now considering other opportunities for the landowner company to be more embedded in the project,” he said.

Berthet said TotalEnergies was not sitting around waiting for FID to interact with communities, and he noted that the firm had already spent money on building schools, providing water tanks and delivering health programs.

“It’s our responsibility as operator of the Papua LNG project to build trust and confidence with these local communities. Ultimately, they are hosting us, so we owe them this positive impact,” he said.

Papua LNG in brief

Papua LNG is a liquefied natural gas (LNG) project led by TotalEnergies, with a 37.55 per cent interest, and including ExxonMobil (37.04 per cent), Santos (22.83 per cent) and JX Nippon (2.58 per cent).

The estimated US$10 billion project will effectively involve two parts. Upstream, Total Energies will build nine production wells, a water injection well, a carbon dioxide reinjection well and a gas processing plant. A 320 km pipeline will then bring the processed gas to ExxonMobil’s LNG plant outside Port Moresby, where it will be processed for shipment by up to three new electrical LNG trains. The project will have an LNG export volume of 5.6 million tonnes per year.

As Papua New Guinea’s state nominee, Kumul Petroleum Holdings and the Mineral Resources Development Company have an option to take up to 22.5 per cent interest in Papua LNG, which it is expected to formally exercise at the time of a final investment decision.

Nadav Shemer Shlezinger. (4th December 2024). TotalEnergies country head ‘very confident’ of Papua LNG final investment decision date. Business Advantage PNG.

TotalEnergies country head ‘very confident’ of Papua LNG final investment decision date – Business Advantage PNG

November 26, 2024
Subu 2 Village, Gulf Province   

TotalEnergies EP PNG Limited (TotalEnergies), operator of the Papua LNG project, celebrated the opening of three infrastructure projects in Subu 2, in Baimuru LLG, Kikori District, Gulf Province on November 22, in the presence of the community and Project partners.  

The Papua LNG Project is intent on ensuring inclusive, quality education and promoting lifelong learning opportunities and as such, has facilitated the construction of a Classroom for Subu 2 Elementary School, a teacher’s house as well as the installation of two 3,500 litre water tanks, and a radio facility. The new infrastructure is expected to significantly support the existing Subu 2 Elementary School and teacher Ms Jacinta Hove, who caters to a student population of 69 students attending Elementary Prep, One and Two. The need for the teacher’s house was identified through consultations with the community, emphasizing the importance of providing adequate living conditions for educators, to enhance their ability to teach effectively.  

TotalEnergies Health, Safety, Sustainability and Environment Director Marie-Alix Dognin, while addressing those in attendance, emphasized the importance of better improving the standards of education for the children who are the future of the community.  

“Today, I sincerely appreciate all the efforts that you all have made to ensure that these facilities are in place and will help to achieve Government’s Vision, ‘that no-one gets left behind’,” she said, further stressing that buildings enhance the efforts of teachers, parents, authorities such as the Provincial and District Level Education officials to ensure that quality learning is achieved.  

“All stakeholders need to work together to ensure the sustainability of the investment made today, into the future and to see outcomes for the children to reach further educational opportunities, so that they can positively contribute to the livelihood and sustainability of their families and communities,” she emphasized. 

Education has been a key focus area for TotalEnergies in 2024. The Project, in close consultation with the communities within the Project Area of Influence, has supported four Primary Schools in Wabo, Apiope, Evara, Mapaio and now Subu Elementary School. 

Through strategic partnerships with the Gulf Provincial Government and Administration and key stakeholders, the Papua LNG Project has made significant strides in addressing educational challenges and promoting long-term development in the province. These initiatives are the start of a broader strategy to improve educational outcomes and community well-being.