Impact of benefits to communities studied

OIL Search Limited (OSL) will be conducting an independent research with the National Research Institute (NRI) to assess the impacts of benefits it has contributed to PNG.
Executive general manager stakeholder engagement Gerea Aopi told a workshop on the Economic Policy Analysis Course at NRI yesterday that this was because Oil Search had delivered more than just oil and gas for the country.
“OSL has supported the State in delivering infrastructure and social development initiatives like roads, schools, hospitals and churches through donations and projects at the request of the State through the tax credit scheme,” Aopi said.
He said the company estimated that the PNG LNG had paid in excess of K3 billion to the State and the landowners since 2014.
“This includes K145 million that went to royalties, K147 million to development levies and K2748 million went to the equity distribution of the landowners and the State,” he said.
Aopi said on oil alone, the industry had paid K2.7 billion to the State and the landowners.
“From that, K868 million went to royalties, K245 million to development levies and K1,626 million went to the state and landowners in equity distribution.”
Aopi said OSL also contributed K500 million in delivering projects at the request of the State.
He said these were substantial contributions to the landowners and the project also did contracting, creation of employment and other multipliers.
“The oil and gas industry is also the primary contributor to the country’s export earnings that make up 80 per cent of it,” Aopi added.