TALISMAN Energy Inc, one of Canada’s largest petroleum companies, has full confidence in the prevailing investment climate in Papua New Guinea.
Talisman president John Manzoni made this known to Prime Minister Sir Michael Somare whom he met in London.
Sir Michael was on his way to the Commonwealth Heads of Government meeting in Trinidad & Tobago.
Sir Michael said: “We discussed the current political stability and excellent investment climate in PNG and I am encouraged by the company’s enthusiasm to increase its operations in the country.
“Talisman has also indicated it will realise the fruits of some of its early exploration work by 2011,” Sir Michael said.
Mr Manzoni was accompanied by Dave Nolan (regional head of Australia & PNG) and Madiu Andrew (manager, government affairs) Talisman is an oil and gas company with its headquarters in Calgary, Alberta, Canada and is listed on Toronto and New York stock exchanges, with a market capitalisation of around US$18 billion (K48 billion).
The company’s current operations are focused in Gulf and Western provinces, having owned the two offshore petroleum retention licence (PRL) 1 and petroleum prospecting licence (PPL) 244 since 2005 when Paladin was purchased.
Mr Manzoni said that as part of ensuring growth in PNG business, “Talisman focused on the Western province to combine offshore and onshore gas opportunities and to create a new, non-competing project separate from Interoil and ExxonMobil projects.”
Talisman acquired Rift Oil including PPL 235 and 261 last August and had reached agreements with Horizon Oil and New Guinea Energy to enter PRL 4 and 5, PPL 268 and PPL 269, respectively.
“I am encouraged that these moves represent an investment of over US$400 million (K1.1 billion) on these assets over the next three years with more new wells to be drilled and seismic surveys to be conducted,” he said.