Projects to start: Botten

THE process on the development of petroleum projects in the country should start soon, Oil Search managing director Peter Botten says.
Botten was speaking at the 2019 Papua New Guinea Mining and Petroleum Conference in Port Moresby yesterday.
“The LNG markets that we are seeking are being filled, as other projects around the world are sanctioned,” he said.
“We were ahead of many two years ago, now we are coming towards the end of the queue, LNG prices are under pressure, as are construction cost. We continue to lose value as things are delayed.
“We all want only the right project to go ahead, one that works for all stakeholders but we do live in a real world, where we don’t control some of the key pieces that will make any project here work.
“The window is closing so we all have to decide what to do.”
Botten said developing discovered resources at Papua LNG in Gulf and P’nyang in Western had the capability of almost doubling production from 2024-2025 onwards. He said these developments were initially likely to invest over US$13 billion (K44bil) or US$52 billion (K176.8bil) over the next five years, with more to come with the upstream development of P’nyang.
“This will come with significant economic stimulation, new jobs, new wealth creation and stimulation for the PNG economy,” he said.
Meanwhile, making reference to petroleum projects, Botten also said all projects provide shared opportunities for local landowner companies.
“Work carried out by our landowner companies is fundamental to our ongoing operating success and project stability,” he said.
“This work provides employment and skills training thousands of people who live within the communities we operate.
“Oil Search alone will spend approximately K260million with landowner companies in 2019.
“Landowner employees represent 35 per cent of our workforce, PNG nationals represent over 85 per cent on our employee payroll.
“There are 11 multi-million kina landowner companies operating on behalf of the oil joint ventures.”