OSL: US$283m in taxes, royalties and dividends

Business, Normal

The National, Monday 13th May 2013


OIL Search Ltd (OSL) paid US$283 million  (K602.93 million ) in petroleum tax, royalties, development levies and dividends to the government last year.

OSL is the country’s largest company and taxpayer, generating significant revenue for national coffers.

“As an operator, we have been one of PNG’s largest contributors to the national gross domestic product and export revenues,” the company said in a report.

OSL’s Transparency Report said it paid US$202 million in petroleum tax, US$ 36 million in royalties and development levies, US$37 million in salary and wages tax and US$8 million in dividends to the government.

“These are material value streams that the go­vernment must effectively manage for the sustainable development and future of the country.

“As seen in resource- rich developing countries globally, ineffective management can lead to increased levels of corruption that result in social inequalities and conflict at project and country level.”  

It added that Oil Search played a key role in encouraging and supporting the national government’s efforts to manage current and future revenue flows from oil and gas activities through two key initiatives; benefits management and revenue transparency. 

The Oil Search Group also holds a 29% interest in the US$19 PNG LNG project, which is scheduled to produce first gas next year.