Firm obliged to provide business

Business, Normal

The National, Monday February 29th, 2016


OIL Search Limited says it is obliged under a memorandum of understanding and development agreements that apply to all licensed areas to provide business development opportunities to landowner companies.

A company spokesperson made this known to The National following concerns and comments raised by landowners from the Moran Petroleum Development Licence 5 during a forum last week.

The group raised concerns that landowner companies were not involved in long term business opportunities in resource development areas.

The two-day state and landowner forum last week saw Petroleum and Energy Minister Ben Micah gathered with landowners from impacted areas of oil and gas projects to discuss issues surrounding the landowners. 

The Oil Search spokesperson said: “To ensure that benefits that accrue from such business opportunities are received by the greatest number of people, Oil Search has service contracts with landowner companies (lancos) that are broadly representative of all impacted groups or geographic areas.”

The spokesperson said preference was given to companies that had a broad equity base of individual shareholders, a constitution, carry out annual audits, hold regular board meetings and have a dividend distribution policy. 

“Almost all service contracts associated with the operation of the Oil Search facilities in Papua New Guinea are awarded to lancos or joint ventures involving such companies.”