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Oil Search Environmental Management Certified as ISO 14001 Compliant
by PNG Business News - March 31, 2021
Oil Search continues to place constructive environmental conservation at the forefront of its activities. To that end, it maintains an efficient environmental protection scheme that complies with the ISO 14001 global standard's specifications.
The Company is dedicated to preserving and reducing environmental impact in the communities.
Oil Search's oil and gas facilities are located in some of the world's most isolated and environmentally diverse locations. It is critical that its infrastructure and management processes are equipped to handle the threats that its operations pose to the natural environment.
Leon Buskens, Oil Search Country Manager said, “This is an outstanding result for Oil Search. The ISO 14001 recertification provides assurance to our shareholders and other stakeholders of our commitment to safe and environmentally responsible operations.”
Over the course of five days, an analysis of the Company's Environment Management System (EMS) was performed through the Oil Search PNG Business Unit (BU). The audit looked into Oil Search's environmental inspection results, EMS training logs, and relevant contracts that included clauses requiring vendors to follow the company's environmental policies and procedures.
The organization first obtained ISO 14001 certification in 2009 and has retained it for the last ten years.
Oil Search is committed to recognizing and mitigating the detrimental effects its activities can have on workers and contractor personnel, local community residents, and the ecosystem as a responsible operator, as well as defining opportunities for quality development and optimizing productive business operations.
Oil Search's contributions to water, pollution, biodiversity, land use, food care, education and security, and carbon mitigation are outlined in concrete strategies for Health, Welfare, Environment and Security, Social Responsibility, and Climate Change policies.
The company takes a cautious approach to address possibly harmful environmental and social effects on the broader economy and surrounding climate. This entails frequent consultation with communities on how the company's activities can affect them, as well as ensuring that their property, culture, wealth, and rights are safeguarded.
Oil Search has set 2021 Key Success Indicators for waste management and greenhouse gas emissions reduction as part of its ongoing pledge to good environmental performance. This involves reducing onsite waste disposal and introducing greenhouse gas (GHG) reduction measures that lead to a GHG level reduction of more than 30% for all managed assets by 2030.
PNG Business News - March 29, 2021
Oil Search Operating With Measures
Oil Search claims that stringent quarantine procedures, behaviour restrictions, and personnel roster guidelines put in place last year have secured the company's activities in the region. In a statement, Oil Search said that no cases of Covid-19 had been identified in their field operations. In addition to the number of Covid-19 cases around the world, the organization has increased its efforts to protect its employees and ensure secure and efficient operations. The instituted ways include: The organization is bringing its disaster and emergency response strategies into effect, with staff in PNG and Sydney closely handling and tracking the situation. PNG field sites are continuing to follow precautionary procedures placed in effect last year, which included redeploying non-essential personnel, limiting access and transport to field areas, and putting in place stringent preventative measures and quarantine zones; Imposing further RISK Reduction Steps, such as acquiring further monitoring facilities and expanding the quarantine duration for staff and contractors heading to the field; Reducing the Port Moresby office's workforce to a core community of medical, defence, and facilities workers, with regular checking of office employees; and, Procurement and distribution of nearly 500,000 pieces of personal security equipment to the National Government. Oil Search managing director Dr Keiran Wulff said, “The Covid-19 is a growing threat to the people of Papua New Guinea. “We are doing everything to ensure that our employees can continue to work safely, and to support their families as they do so.”
PNG Business News - March 11, 2021
Hela and Southern Highlands Sign MoU for PNG LNG Project
To set out how benefits from the PNG LNG project will be divided between two provincial governments, Papua New Guinea's Governors Hon. Philip Undialu (Hela province) and Hon. William Powi (Southern Highlands province) have recently signed a Memorandum of Agreement. In 2009, benefits from the PNG LNG Project to the provincial government and landowners were agreed during the UBBSA when the Hela region was still part of the Southern Highlands province, but three years later in 2012, the Hela region became a province. With oil and gas and wells supplying gas to the PNG LNG Project located in both provinces, leaders decided on a split of the benefits agreed in 2009, and instructed the Mineral Resources Development Company (MRDC) to work out the formula. “First and foremost, we want to thank and pay homage to Grand Chief Sir Michael Somare for delivering the PNG LNG Project, the single biggest investment ever undertaken in our nation’s history. The project remains a milestone achievement for the nation by the founding father, whose passing we are mourning at this moment. “We also thank and remember late Anderson Agiru, former governor of Southern Highlands and foundation governor of Hela, for his role in delivering the project, and negotiating the benefits for the landowners and the provincial government. “At that time, the Hela region was part of Southern Highlands province. Work had begun for the establishment of a new province, and it was agreed that the benefits to the southern Highlands province agreed under the UBBSA would be reviewed once Hela province was established. “MRDC undertook that exercise and worked out a formula for the split of the benefits between the Southern Highlands and Hela provinces, and we want to thank MRDC for almost their years of hard work put into this document we signed today. “Essentially, this Agreement allows benefits from oil and gas fields in Southern Highlands to be split 60% (Southern Highlands) and 40% (Hela). Likewise, benefits for oil and gas fields in Hela province will be split 60% (Hela) and 40% (Southern Highlands). “To illustrate, SHP will retain 60% of the benefits from PDL2 (Kutubu and Moran), which includes royalties, SSG funds, and development levies. “Hela will retain 60% of benefits from all gas fields, which includes royalties, development levies, and the Kroton Equity as well. “The Southern Highlands Provincial Government equity in Bank South Pacific (BSP) and Petroleum Resources Kutubu (PRK) will also be split, with 40% going to Hela province.” “We are proud and honoured to sign this agreement on behalf of our people. “This split ensures equitable distribution of benefits from this project to the two provinces so that vital social development projects that uplift the lives of our people can continue to be delivered.”
PNG Business News - December 07, 2020
Santos Says PNG LNG Is A World-Class Asset
Australian natural gas developer Santos Ltd said that the PNG LNG is a world-class low-cost asset delivering above nameplate productivity. According to chief operations officer David Banks, opportunities for expansion can come in the future. “One core asset that is operated by others is the PNG LNG,” he said. “Exxon Mobil, the operator, does a very good job in terms of filling the plant. The plant has been tracking at 30 per cent better than nameplate capacity through very low-cost operational improvement and bottlenecking that has been completed. The production cost of US$4.85 (K17)/boe (per burial of oil equivalent) demonstrates that it is a world-class asset and within that US$4.85/boe is something approaching a dollar of earthquake impact which we are in the process to recover through insurance and the like.”He added, “In terms of backfill options, we have a number, one of them P’Nyang which is subject to framing agreements and we are working with partners in the Government on that Muruk and Hides are also exciting backyard opportunities that will enjoy extreme capital-efficient development costs and make the most of very well run the infrastructure that we have in place there.”
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PNG Business News - April 08, 2021
Price of Oil Recovers in Spite of COVID
According to Oil Search, oil prices have risen steadily in recent months from the initial effect of the Covid-19 last year, when prices ranged about US$43 (K150) per barrel of oil (bbl), to levels above US$60/bbl (K210) since February this year. In response to questions, a group spokesperson said,“ To date, there has been no impact to production in our Oil Search operations in PNG as a result of the recent surge in the Covid-19 cases. The increase in confirmed Covid-19 cases in PNG has prompted Oil Search to enact its crisis and emergency management plans. The health and safety of our employees remain the company’s highest priority and teams have been assembled in PNG and Sydney to deploy additional support to protect our people and to ensure the safety and reliability of our operations. At our PNG field locations, we continue to operate under precautionary protocols established in 2020, which includes redeployment of non-essential personnel, restriction of access and travel to field locations and implementation of strict preventative measures and quarantine zones.” He added, “We have enacted additional risk mitigation measures include establishing ‘cocoons’ for our field teams and extending the quarantine period for employees and contractors. To date, there has not been a single positive case recorded in our operating sites outside of quarantine. We have also conducted more than 7,500 Covid-19 tests at our medical clinics and quarantine facilities in PNG. Beyond the safety of our own people and assets, Oil Search stands ready to work with relevant Government and health authorities to assist in PNG’s overall response to the Covid-19. This includes the dissemination of accurate information around the Covid-19 and vaccinations, supporting provincial health authorities to implement an effective vaccination programme, and providing logistics and cold chain support where required and as directed by the Government.”
PNG Business News - April 08, 2021
Lae Chamber Welcomes Green Energy
The Lae Chamber of Commerce and Industry (LCCI) said it welcomes any power plan that is long-term, environmentally friendly and creates jobs in the delivery of efficient, low-cost electricity in Lae and Morobe. President John Byrne referred to concerns regarding the PNG Biomass project in the province's Markham Valley when he said, “PNG Biomass has provided a solution which ticks most of these boxes, whether it fits the plan of PPL (PNG Power Ltd) is a decision beyond our scope. The recent Ramu 2 announcement is another such solution. Our people of Lae, Morobe, and PNG, not only expect but deserve, reliable, constant and cost-effective power solutions.” According to Byrne, the Lae business group praised the Lae PPL team for their commitment, hard work, and communication in maintaining an ageing and insecure grid infrastructure operational. He said many companies that had short or long-term contracts with the government were failing because of the long-standing outstanding Government bills owing to them. “The quantum of debt is not specified but very large and this added to the impact of the Covid-19, resource debates and a lack of forex is taking a toll on the business houses.,” he said.
PNG Business News - April 08, 2021
Businesses Concerned Regarding Government Debts
With the outstanding amount of government debt owed to the sector, pending landowner fees, and rising law and order woes, businesses are concerned about 2022. According to Chey Scovell, chief executive officer of the PNG Manufacturers Board, conversations within the business community revealed that the government owed companies more than K2 billion. “I don’t have an updated list, but from general conversations with business and what is being raised with the various chambers, it would exceed K2 billion,” he said. “We hear that contractors for the Department of Works have claims for this amount alone, so the number could be as high as K3 billion. No doubt they may have paid some, technically a K1 payment would be paying at least some. The Budget hasn’t been able to be implemented properly at all. Recurrent expenditure, monthly bills for things like water, power, security, rent, are not being paid in full or in many cases at all. We’ve suggested that the Government put up an online portal/list, for all creditors to register for the Government to show full or progressive payments.” Scovell compared what the government was doing to the private community to what would happen if everybody started paying taxes for one to five years but continued to use government programs. “They wouldn’t be able to survive, so how is it that they expect businesses to carry on?” he said. “It is also a bit of a cop-out that Treasury is taking a long time and in many instances taking extensive reviews of claims to see if they will pay them and by how much.” Scovell argued that the government was required to behave in good faith and to set a precedent, but that forcing or intimidating companies to make substantial reductions in compensation due for goods and services rendered was bad form. “We note there are many dodgy claims, but there seems to be little evidence that hires car firms, public works contractors and catering firms (reported as problematic areas) are having the same scrutiny,” he said. “BOC Gas waited years to be paid for medical gases such as oxygen supplied to PMGH (Port Moresby General Hospital), it was reviewed twice that I know of and not paid. The other item of note is that debt carried is a growing debt. The older it gets the more it has cost the businesses.” He added, “Also, our currency has been depreciating, many businesses based their fees on the foreign exchange rates at that time, some even had loans Just like our tax penalties, the longer they are overdue, the higher they should become. This Government isn’t doing to others as it does for itself. We still have micro, small and medium enterprises that have suffered duress due to non-payment of bills going all the way back to our 40th Independence, same goes for the 2015 Pacific Games, we hear from the regional chambers that there are many outstanding claims for the past two elections. Again, if we had a publicly available list, the Government wouldn’t be able to hide behind confusion and people could whistleblow on dubious claims.”