Tuesday, March 27, 2012

Oil Search to spend K4.3 billion in 2012


OIL Search Ltd will be spending up to US$2.1 billion (K4.3 billion) on investments in PNG alone this year, which will make it the country’s single largest investor during the year, The National reports. Managing director Peter Botten said yesterday that this was a very significant investment by Oil Search shareholders.
Last year, Oil Search posted a net profit of US$202.5 million (K420 million), reflecting the rise of oil prices and lower exploration expenses.
“So (this is) a very solid investment record in the country overall, but this year is our biggest ever,” Botten said.
He said a lot of money was being spent on the LNG project, rejuvenating oil fields, finding new oil, carrying out exploration and appraisal work and drilling.
Drilling was also being carried out in the Gulf of Papua for the first time in many years.
From the 2011 financial reports released this year, this investment reflected the company’s confidence in the government and continued operating stability, as well as its ability to manage in-country challenges, including the forthcoming elections.
It also reported that the cost of the ExxonMobil-led PNG LNG project had increased its initial value of US$15 billion (K31 billion) to US$15.7 billion (K32.5 billion) due to the impact of currency fluctuations.
This strong performance had placed Oil Search in a good position to launch a long-term commitment to assist the National Health Department through the implementation of malaria, TB, HIV/AIDS and maternal and child mortality projects within its impacted areas.
Botten said the Oil Search Health Foundation would become an independent body to run these projects by end of this year.
He said their participation in this area would be logistics, finance and experience in working on the ground in a private-public partnership, as well as managing donor monies for these programmes, using existing infrastructure.
“With the LNG happening and revenues coming, the future lies in us and the critical role we have in providing something back to PNG,” Botten said.
He said OSL was also concerned at the spread of benefits from resource-rich provinces to others, which was the core goal of the health foundation

No comments:

Post a Comment