Yesterday Jubilee Australia released a damning report on PNG LNG. Its findings echo the experience of Chad-Cameroon with ExxonMobil. Why didn't PNG's leaders conduct due diligence into Exxon before getting into bed with them! Now it is the people of PNG who are going to pay.
Compare Chad-Cameroon findings:
"When the Chad-Cameroon Oil and Pipeline Project was officially inaugurated in 2003, the World Bank explained its rationale for supporting the project: 'There are two essential reasons for World Bank Group involvement: The first is to help ensure that Chad's oil money is used for the well-being of all Chadians, particularly the poor…. The second reason is that World Bank Group involvement has helped ensure that the Bank Group's rigorous safeguard policies were observed in order to implement the project in an environmentally and socially sound manner.'
Despite the World Bank Group's unprecedented efforts, it has failed on both counts. The social and environmental situation in Chad has not improved. In fact, there is evidence (some reflected in World Bank statements and official reports) that things are worse. The project appears to have fueled violence, impoverished people in the oil fields and along the pipeline route, exacerbated the pressures on indigenous peoples and created new environmental problems. Meanwhile ExxonMobil, the leader of the oil consortium and the world's largest oil company, is registering record profits".
With PNG LNG Findings:
"This Report is the most complete discussion to date of the potential risks and benefits of the Project to the people of PNG; it argues that, contrary to the official discourse, there are serious risks that the revenues generated by the project will not mitigate the negative economic and social impacts of the Project. In fact, it is very likely that the Project will exacerbate poverty, increase corruption and lead to more violence in the country".
http://www.jubileeaustralia.org/LiteratureRetrieve.aspx?ID=112463 (3576 KB)