Oil Search wants more PNG LNG benefits

OIL Search managing director Peter Botten has called for an improvement in the delivery of benefits to landowners and other stakeholders.

  • Staff Reporter
  • 23 August 2017
  • 08:18
  • News
Oil Search wants more PNG LNG benefits

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Speaking at a breakfast hosted by the Business Council of Papua New Guinea, Botten told the business community and government representatives that benefits from projects and how they were distributed had to be improved before new projects could be contemplated, Loop PNG reported.
 
"I believe there's a broad feeling in the country that recent developments have delivered little over the last few years," he said. 
 
"I don't think this is true. But the industry must demonstrate and must be prepared to address the debate of fair value distribution.
 
"Benefit delivery from PNG LNG must improve. Landowners must be paid. The money is there, some have already been paid, but barriers to distribution must be removed.
 
"With the right environment, oil and gas production can more than double over the next five to seven years. Potential investment over K60 billion in developments, appraisal and exploration are possible in this time frame. Construction can lead to more than 20,000 new jobs with significant other spin-off economic activities.
 
"The prerequisite for success is developers engaging with government, landowners, and indeed the whole country to demonstrate fair value distribution for all parties has been achieved from existing projects."
 
Botten noted more than K3 billion had been paid by PNG LNG in royalties, development levies and equity distributions to the state and landowners since 2014. 
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