Oil Search Limited

Petroleum Minister calls on Oil Search not to shift blame

He was responding to a report in the Australian Financial Review which quoted Oil Search chairman Rick Lee who said that the PNG government was responsible for the payment of benefits from the PNG LNG venture.

Minister Pok called on Oil Search to clearly indicate the exact amounts in the different benefit streams, and provide the names of beneficiaries of the estimated K14 billion being paid in Royalties, Levies, Tax and Equity as disclosed by the company.

PNG received K14bn from PNG LNG: OSL

The country has received K14 billion in revenue, with K3.9 billion paid to the state and landowner entities in royalties, development levies and equity payments.

Managing Director, Peter Botten, said landowner benefits of K708 million is held in trust waiting for the completion of landowner identification process.

Botten also said of the 15 licences covering PNG LNG Project areas, 12 are either receiving (Plant Site LOs) or close to receiving benefits. Three are held up by the courts.

OSL assumes operatorship of Alaska asset

Oil Search says assuming operatorship three months earlier than expected is a result of support from government, regulators, joint venture partners and native companies.

Following the acquisition, OSL has assigned 127.5 million barrels (mmbbl) of 2C contingent oil resource to the Pikka Unit, which reflects Oil Search’s 25.5 percent share of the estimated gross resources of 500 mmbbl for the Unit.

The Alaskan North Slope is one of the US’ largest conventional oil discoveries in recent times.

Over 200 people treated in quake villages

The treatments have been carried out by Oil Search Limited since the earthquake struck six weeks ago.

The Company’s medics have covered Yalanda, Kekero, Huiya, Dodomona and Walagu villages attending to sick men, women and children.

Patients are being treated for muscular pains, diarrhoea and respiratory infections in makeshift aid posts.

“Crowded conditions in care centres can lead to an outbreak of diseases and it’s important we are treating these mild cases and decreasing the risks,” said Oil Search Medical Officer, Dr Robert Imambu. 

Oil Search resumes CPF production

Managing director Peter Botten announced today that operations and oil production have commenced from a number of Kutubu oil field wells at an initial rate of approximately 4,000 barrels of oil per day.

This follows a detailed assessment of all Oil Search-operated infrastructure, including the processing equipment, storage tanks and flow lines at the CPF, and minor remedial work to ensure the facility’s integrity.

With the CPF now operational, oil production from the Kutubu complex fields is expected to be brought back online progressively during April.

More than 70, 000 assisted

This include village visitations, providing relief assistance, on the ground medical treatment, and conducting village assessments.

In a statement Managing Director and CEO, Peter Botten, said as of March 13, Oil Search helicopters have made over 86 village drop offs, moving over 70 tonnes of material to Moro and delivered almost all of that already to communities.

Over 10 tonnes of this amount has been medical supplies which have been delivered to health facilities across the affected Gulf Provinces.

‘The earth started to shift and shake violently’

This was the traumatising experience of Marlian, a mother-of-three, following the recent 7.5 earthquake. 

“I ran outside pulling my children by the hands and then I saw my house just ‘fly away’.

“We lost everything. Our house is gone, our gardens are gone and the water has turned red so we cannot drink it or wash in it.

“We are sleeping in the bush without any cover.

OSL acquires Alaska assets

In a statement released on the Port Moresby Stock Exchange, the company announced it has completed its acquisition of a 25.5 percent interest in the Pikka Unit and adjacent exploration acreage and a 37.5 percent interest in the Horseshoe Block in the Alaska North Slope.

Both interests were acquired from privately-owned companies Armstrong Energy LLC and GMT Exploration Company LLC, and was completed on 14 February 2018.

The acquisition cost of US$400 million was paid from the Company’s existing cash balances.

​PNG Orchids presented jerseys

The PNG Orchids were presented the new jerseys from major sponsor Oil Search Limited for their curtain raiser match before the Prime Minister XIII match between the Kangaroos and the Kumuls.

OSL executive general manager stakeholder engagement, Gerea Aopi, said the company was thrilled to support the PNG Orchids.

“This is PNG’s first ever women’s national rugby league team to participate in international events and we are proud to create sporting history alongside them.

“Oil Search is a proud advocate of women’s empowerment.

Oil Search backs resource revenue transparency

In a statement the company announced that as member of the Extractive Industries Transparency Initiative (EITI) it backed the transparent use of revenue generated from the resource sector to empower policy makers and citizens as well as mitigate corruption.

Oil Search says the payments for royalties, taxes, levies and other fees and charges to government and other stakeholders make up a large proportion of the country’s total private sector income.

These payments also cover some of the organization’s most significant socio-economic contributions.