Oil Search pays state K22mil in levies and royalties

National, Normal

The National – Wednesday, February 2, 2011

OIL Search Ltd, the developer of the rich oil and gas fields in Southern Highlands, presented more than K22 million in business development levies and royalties to the state in Port Moresby yesterday.
A total of K4.5 million in royalties for December last year and K17.8 million for development levies were presented.
It was revealed at a gathering yesterday that more than K157 million in development levies had been paid to the Southern Highlands provincial government and the Moran Special Purpose Authority and another K269 million in royalties had been paid since 1992 to more than 194 ILGs.
Executive general manager Gerea Aopi, when presenting a cheque for K22,504,607 to the Department of Petroleum and Energy said that benefits from PNG’s oil operations continued to flow to the state and landowners in the project areas.
He said the turnover for the last quarter was good with good oil prices at the world market.
He said of the K22 million, more than K4.5 million was for royalties for the month of December last year.
He said the royalty breakup was Kutubu K2,116,912.27; Moran –  K1,706,689; Gobe – K588,197.46; and Hides –  K111,887.
More than K17.9 million was paid as development levies to the state which would then be paid to the provincial government and the Hulia local level government.
Acting deputy secretary Francis Lola said the royalties were paid for existing projects while the development levies would be paid for the Moran oil project.