Oil Search will remain loyal: Botten

The National Business

By MARK HAIHUIE
OIL Search Limited remains “strongly committed” to Papua New Guinea despite the Government selling its shares in the company, according to managing director Peter Botten.
Botten said there was a strong market demand for the sold shares from domestic and international investors.
“The Government’s shares were sold by way of a block trade, at a modest 1.6 per cent discount to the share price,” Botten said.
“We understand that there was strong demand for the shares, which were distributed broadly into the market to domestic and global institutional investors, demonstrating strong support for Oil Search.
“The sale does not diminish the excellent relationship between the State and Oil Search.
“We remain strongly committed to Papua New Guinea and expect our activitiesin the country in partnership with the State in the areas of health, education, infrastructure development and power, to name a few, will continue.
“Exiting its Oil Search shares has allowed the State to partially recover refinancing costs on the loan it took out in 2014 to fund the purchase of the shares, which will assist this year’s budget, as well as avoid future loan refinancing costs that would have arose in 2018.”
Botten highlighted several government priorities in line with the Oil Search operations including:

  • The Government entry into FEED for PNG LNG expansion in 2018 and commencing early works for Papua LNG;
  • two power projects in which Oil Search is involved, a 58MW gas power plant in Port Moresby and the 30MW Biomass Project; and,
  • The resolution of PNG LNG landowner benefits issues.

The first landowner royalty payments were paid in last month with final landowner identification for other areas now underway.