Wednesday, May 09, 2012

Oil Search commits to PNG

Oil Search Ltd remains committed to PNG despite considerable political uncertainty over the past year, according to chairman Brian Horwood, The National reports.
He told the company’s annual general meeting at Crowne Plaza in Port Moresby yesterday (Tuesday) that despite political instability and concerns within the banking and investment communities, neither the PNG LNG Project nor Oil Search operations were disrupted.

Oil Search shareholders listen attentively at yesterday’s annual general meeting at the Crowne Plaza in Port Moresby.-Nationalpic by MALUM NALU

“Ensuring the continued security and safety of our staff and contractors in the run up to the election remains the highest priority for Oil Search,” Horwood told shareholders.
“We are encouraged that the government has confirmed the election will proceed according to the original timetable.
“The country is already in a period of major social and economic change.
“This will increase further when the very significant revenues from the PNG LNG Project start to flow in 2014.
“We look forward to working with the incoming government, in particular, on establishing structures and processes to manage these very substantial benefits streams, in the best interests of the nation, and on ensuring consistency of fiscal terms, which is critical to ongoing investment.”
Horwood said apart from assisting Esso Highlands with the successful delivery of the PNG LNG project, Oil Search’s other key objectives were:
• To mature and find new gas reserves in the Highlands and PNG Gulf regions, to be used for both LNG expansion and other gas development opportunities; and

• To pursue in-field and near-field oil exploration and appraisal opportunities, based on a view that substantial oil remains to be discovered in our existing producing areas.

“During 2011, Oil Search and its partners agreed a comprehensive programme aimed at establishing additional gas resources in the Highlands region,” he said.
“This comprises exploration and appraisal drilling as well as further definition of the gas within existing oil and gas fields.
“…I am pleased to report that the campaign has started extremely well, with the recent discovery of a substantial gas accumulation at P’nyang South.
“Other aspects of our growth plan are also progressing well.
“We had considerable success in the near field exploration programme at Kutubu in 2011.
“Two exploration wells discovered oil and both are now in production.
“In the Gulf of Papua, a range of exciting prospects have been identified from our 3D seismic, with drilling activities targeted to commence at the end of 2012.”

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