Peter Botten

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.

Water borne disease outbreak likely

Oil Search Managing Director, Peter Botten, said there is already cases of diarrhoea and other related illnesses due to contaminated water.

He said while efforts are increasing, there remains a dire situation.

Botten said in a media conference on Monday that a potential outbreak could occur due to contaminated water.

 “I think everybody knows there’s a high likelihood that this is happening and I think a response is building through this committee to what will inevitably be some outbreak of diarrhoea and other disorders,” he said.

OSL disaster funds almost exhausted: Botten

He said over the last two weeks, the company had undertaken intense relief efforts, conducting more than 87 supply drops of a combined total of nearly 50 tons of supplies and materials.

Most of these have been done using helicopters flying to remote parts of the impact areas.

Botten said it was an expensive exercise but it was only fair the company did its part as a member of the community.

Three LNG trains proposed

Oil Search managing director, Peter Botten, revealed this during the announcement of OSL’s 2017 results.

Botten said productive, high level meetings were held with ExxonMobil and Total to discuss the results of the downstream development options that were received by the PRL 15 joint venture partners last December.

“The partners have reached broad agreement on the preferred development concept, which will be presented to the PNG Government and other PNG LNG and PRL 3 joint venture partners for endorsement.

PNG’s best managed hospital

This follows the highest commendation of an ‘Unqualified’ rating from the Auditor General’s Office (AGO) recently.

This achievement was officially made known to the Hela Provincial Health Authority (PHA) during its board meeting last week, after the AGO completed an audit of the hospital’s 2016 financial statement of accounts.

K60 billion potential for gas expansion

This potential covers any exploration, appraisal, and developments, within the next few years.

During the Prime Ministers Breakfast in Port Moresby on Thursday, Oil Search Managing Director, Peter Botten, said the potential investment will create 20,000 new jobs and significant economic spin off benefits.

PNG is in a tremendous position to expand LNG production. There’s more discovered proven, probable gas reserves now than before PNG LNG’s first initial sanction,” Botten said.

Barriers to LNG payments must be removed

In his speech during the Prime Minister Breakfast event on Thursday, Botten called for the removal of barriers hindering the fair distribution of LNG benefits to landowners.

In his update to the business community on the gas resource sector, Botten said a pre-requisite for developers investing in PNG and engaging with the Government, Landowners, and stakeholders was to ensure ‘fair value distribution.’

TCS projects decided by Govt

Oil Search Managing Director, Peter Botten, said this when questioned why the TCS was used to fund projects outside provinces in which resource projects were in.

The question was raised by Madang Open MP, Bryan Kramer, who said the original intention of the TCS was to provide road infrastructure for project areas.

“We’ve adopted a practice now where projects which were supposed to be expanded in rural development in the project area are creeping up in Port Moresby,” said Kramer.

Botten said that decision was the Government’s prerogative.

Oil Search excited with prospects

Managing Director Peter Botten said during the company’s annual general meeting in Port Moresby recently that the Muruk Well and its follow up is part of their 2017 program and beyond.

He said the company will soon go into testing the Muruk as well as into other prospects north-west of the Angore and Hides gas fields.

LNG production to increase, oil to slump

Speaking during the company’s 2017 Annual General Meeting recently, Botten revealed how LNG production is expected to increase.

These, he says follows the announcement of increases in OSH’s PNG LNG Project reserves last year with ‘Proved (1P)’  reserves up by 50 per cent while ‘Proved plus Probable (2P)’ reserves increased by 12 per cent.

So far in quarter one of 2017 a production of 8.3 metric tonnes per annum (MTPA), which is 20% above nameplate, was recorded.

Meanwhile, oil production is expected to drop this year according to the CEO.