Barry: Think long term to overcome revenue fluctuations

 By SHIRLEY MAULUDU

NO doubt the current low commodity prices will strain resource sector dependent economies such as Papua New Guinea, ExxonMobil PNG Ltd managing director Andrew Barry says.  

“Monthly and annual revenues will continue to fluctuate, thus the key to success is having a long term view, while taking the necessary actions to ensure that project fundamentals remain strong and that LNG production continues uninterrupted,” he said. 

Barry noted that what was important to reflect on was the long term nature of investments such as the PNG LNG project. “Commodity prices are cyclical and as long as the fundamentals are strong, like they are for this project, the benefits will remain,” he said. 

“The PNG LNG project is just at the beginning of its multi-decade production life, and already you can see the impact, from successful construction and early startup, on the economy. So, what is important to encouraging further investment in PNG? It comes back to all the factors that made PNG LNG successful. 

“It is the cooperation with government, with landowners and communities and ensuring a sound oil and gas regulatory regime that supports private investment. 

“The PNG LNG project has created a reputation that is not only enjoyed by project participants but by the wider industry in PNG. 

“The investment community, the buyers and governments have all stood up and taken notice of 

the achievements made by this project.