Over K25bn invested

 OIL Search has invested more than K25 billion in Papua New Guinea in the last 10 years, managing director Peter Botten (pictured) says.

He told the Australian Broadcasting Corporation yesterday that 2014 was a transformational year for the company, with a record revenue and profit about 72 per cent higher than 2013.

Asked what the people of PNG would get out of the high performance, Botten said Oil Search was interested in getting the benefit streams from the PNG LNG “distributed properly and evenly across the whole country”.

He said the key to that was to work closely with the Government “to ensure it happens”.

“That’s the core to our business,” he said.

“I think in reality, the biggest beneficiary of the PNG LNG is the State. So although people can complain corporates don’t get taxed enough, you should realise we are  massive investors in PNG.

“Over the last 10 years, we as the largest investor invested something over K25 billion in the country to generate jobs, wealth.

“Part of that is undoubtedly the successful development of the PNG LNG project.

“We absolutely sensitively to the fact that we need to work with the Government to ensure that benefits which are very substantial to landowners and communities are used wisely and distributed properly.

“That is a key challenge for us all over the next 12 to 18 months as the LNG revenue starts to flow in.”

On the global decrease in oil process, Botten said Oil Search was “in a better shape than most”.

“We’ve got a good cash flow coming in from PNG LNG and in all areas of our business. And they all remain profitable,” he said.

“But like everybody, we have to look at our business. When you take a 50 per cent cut in revenues, you do have to re-focus and prioritise your cash flow.”