OSL pays millions to landcos

 By GYNNIE KERO

OIL Search Ltd has spent US$81 million 

(K174.6 million) on landowner companies providing services and supplies to camp caterers, according to the company’s annual report. 

The company said it aimed to support and develop the capacity of local people and businesses so they prospered in the local market thus providing a range of goods, services and skills of international standards.

“The success of landowner companies in particular is important for ensuring an adequate supplying of goods and services, generating an income for local community shareholders and mitigating any landowner related problems.

“Supporting landowner companies is therefore an ongoing priority for Oil Search and in 2012 our spending on services provided by landowner companies increased by 43% to US$81 million.”

OSL says community participation in project business development and job opportunities remained strong.

This was evident when two landowner groups from Southern Highlands signed an agreement in Port Moresby last week to pool their resources and bid for work in the petroleum industry.

The memorandum of understanding was signed by the Hides Gas Development Company (HGDC) and KutMor (Kutubu Moran) Ltd.

The company spokesperson said it would provide the companies an opportunity to combine their resources and compete for opportunities in the PNG LNG project.

The spokesperson told The National that instead of having many smaller cluster groups, HGDC-KutMor joint venture would serve the interests of landowners and stakeholders in the LNG project.