Oil Search

​KPHL sells OSL shares, loses K760m

KPHL made the official announcement today after the decision was made yesterday.

Chairman Moi Avei said this was a commercial decision by the board that was in the best interest of KPHL.

Managing Director Wapu Sonk said the decision to sell the shares had been looked at over the last two years but had been waiting the right time.

He said with the current pricing, the board decided that it was time to sell.

The MD said the shares were sold at $6.70, a dollar thirty short of the purchase price of $8.

​Pruaitch welcomes Oil Search decision

Pruaitch says he stood by his earlier statement that it is in the national interest for locally produced resources such as crude oil, copper, gold, fishery and forest products, to be sold to local purchasers in PNG’s national currency, the Kina.

Pruaitch believes it is an infringement of our sovereignty for lenders, or any other entity, to insist that domestic resources have to be paid for in US dollars or other foreign currencies, even when sold to PNG buyers.

Such arrangements add to the cost of doing business and hamper efforts to encourage domestic processing.

​Govt agencies lack consistency

Executive general manager of stakeholder engagement at Oil Search, Gerea Aopi, said this when addressing participants of the Climate Change and Sustainable Development Workshop.

Aopi said from previous experience, when collaborating with the Government, there was usually no consistency amongst various agencies regarding policy and implementation.

He said to address a critical issue such as climate change, all government agencies and key stakeholders needed consistent alignment and direction to effectively address the issue.

Barikewa and Kimu fields’ appraisal

Oil Search Limited says the commercialisation options for these fields will be dependent on appraisal results.

Other options dependent on the appraisal results include the delivery of third party gas for LNG expansion or Small Scale LNG (ssLNG).

Oil Search says this represents a potential competitive source of fuel for domestic and/or regional markets that are currently dependent on diesel.

The Barikewa Gas Field is located in Gulf Province while the Kiu Gas field is located on Western Province.

The update is contained in Oil Search’s Half Year Results.

VIDEO: Oil Search in Gulf

Governor Haiveta confirmed that his provincial government will negotiate establishment of the plant with Oil Search Limited and other stakeholders. 

 

Sophie Yaruso with more 

​OSL to carry out seismic acquisition

The licenses are located adjacent to the world-class Elk-Antelope gas fields and contain the Triceratops, Bobcat and Raptor discoveries.

Oil Search announced in its half year results report that their planned entry into the licenses will enhance their exploration portfolio.

The company said it will also build on their existing strong relationship with ExxonMobil in the PNG LNG and Papua LNG projects.

‘Seismic acquisition’ is the generation and recording of seismic data.

Concept on LNG expansion expected

Oil Search revealed in its half year results report, that discussions between them, ExxonMobil, operator of both the PNG LNG Project and P’nyang, and Total SA, operator of Elk-Antelope, are ongoing.

The report states that an aligned view on the proposed coordinated development concept to the Government, will enable fiscal discussions to commence, prior to Front End Engineering Design (FEED) entry.

“Engagement remains focused on evaluating the various integrated development options for the Elk Antelope and P’nyang gas resources.

Oil Search approves interim dividend

This follows the company’s first half year announcement of a 405 per cent net after tax profit of US$129.1 million which is a 405 per cent increase from the same period in 2016.

The dividend is a 300 per cent increase in interim dividend from 2016.

Oil Search says this represents a dividend payout ratio of 47%, which is towards the upper end of the range of the Board’s dividend policy to return between 35% and 50% of core net profit after tax to shareholders by way of dividend.

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Oil Search records 405% profit

This also surpasses the full year core profit by 21 per cent.

In its announcement of its 2017 Half Year, Oil Search said the results reflected higher sales revenue and lower costs.

The PNG company said sales revenue increased by 16 per cent to US$676.2 million (K2,028,194,361), underpinned by materially higher average realized oil/condensate and LNG/gas prices, which increased by 28% and 26%, respectively.

First ever PNG female rugby team sponsored

Oil Search was announced this week as the naming rights sponsor for the inaugural Oil Search PNG Orchids – the women’s team to participate in the annual PNG Prime Minister’s XIII against Australia next month and also in the 2017 Women’s Rugby League World Cup.

Speaking during the launch, Oil Search Managing Director Peter Botten said Oil Search is a proud advocate of women’s empowerment and strongly supports the campaign to end violence against women, through the company as well as the Oil Search Foundation.