Oilmin Field Services at 30: Work Seif, Home Seif
by PNG Business News - November 17, 2022
For 30 Years, Oilmin Field Services has been part of remote field projects throughout Papua New Guinea. Oilmin has been a key stakeholder and partner in the evolving Oil & Gas Industry since 1992 and continues this legacy throughout Papua New Guinea today.
Founded by the late George Leahy and partners, Leahy took full ownership of the Company several years later and launched OM Holdings. George was the son of Dan Leahy, famously known for his exploration expeditions with his brother Mick into the Highlands, later documented by Australian writers and filmmakers Bob Connolly and Robyn Anderson in the documentary, First Contact.
Oilmin has grown and expanded in many ways since its inception and continues to diversify its business model.
OILMIN - Earlier Years
In the earlier years of operations, Oilmin was directly involved and responsible for the Community Affairs Management within a project. This was possible with a selective number of key Field Managers who had experience with these requirements. They possessed a sound understanding of Papua New Guinea and its people.
The Core Business of Oilmin Field Services during the earlier years was Seismic Support Services. Clients at the time consisted of Chevron, Oil Search, ESSO PNG, Geco Prakla, and Union Texas, to name a few. Seismic Projects ranged from a vast number of services and Oilmin continuously delivered these services to its clients. Examples of these services included but not limited to –
- Community Affair Management
- Line Preparation
- Labour Hire & Management
- Logistics & Procurement
- Remote Bush Camp Construction (Fly Camps)
Known for the ability to deliver projects in the most remote areas of the Country, Oilmin became a respected entity that specialised in lightweight, rapid deployment camps. These camps were portable by air and did not depend on machinery to mobilise and construct. They were fabricated from Oilmin’s Head Office, located in Mt Hagen.
Over time, Oilmin Field Services diversified into a variety of industries and services that could be offered to clients for their project requirements. The diversification offered project solutions to clients in terms of Aviation, Shipping, and Timber Supply.
Oilmin continued to diversify over the years and entered projects that were new to the company but expanded the core business and brought in many more employment opportunities for Papua New Guineans to be part of an experienced remote field team.
It entered the Rig Pad Construction sector, and Oilmin managed to mobilise a fleet of heavy equipment into the remotest sites to clear and build rig sites for clients. The work involved with the rig pad projects is quite amazing and unique. The crews would disassemble heavy equipment into 4 to 6 different pieces and fly them under helicopters through the remote jungles before having to reassemble the machines ready for the civil works to commence.
Oilmin has built and delivered over 20 rig pads throughout PNG. The terrain for each location is quite different and the project team adapted to the conditions and requirements for executing these jobs. The locations have been stretched through the provinces including Hela, Western, and Gulf Provinces.
In 2015, the Company and the Oilmin Family were saddened with the news that it had lost its leader -- George Leahy passed away in his beloved town, Mt Hagen. His leadership in the company would be missed for the years to come. He left the company in the hands of his children, who had already been involved in the company and had been working on the remote Oilmin sites throughout the Country. Late George’s vision would live on through the next generation of Leahy’s to lead Oilmin forward.
OILMIN - NEW GENERATION
The Company focused on the core business, remote field services. Oilmin continued to service the Oil & Gas Industry throughout the later years to come and continued to diversify into Camp and Catering Services on the remote sites. It continued to excel with Camps and Catering Management Services, delivering services to the highest expectations. This would lead to the company obtaining International Accreditation for Food Safety and Quality.
Its accreditation is still intact today with ongoing regular facility audits from an International External Auditor. The Auditors’ comments during the 2020 audit were truly pleasing to the management and team -- “The kitchen facility was the cleanest he has seen in all of his years auditing Catering Companies.”
The team continued to invest in its personnel. Training and development have delivered several of its National Employees to being promoted and obtaining Management Positions throughout the Project Sites that Oilmin manages today. These positions include but not limited to:
- Catering Managers
- Camp Managers Crew Managers
- Community Affairs Managers
- Personnel Managers
- Construction Managers
- Logistics and Procurement Managers
Oilmin partnered with Smart Seismic Solutions to offer clients an in-country solution to manage and execute Seismic Surveys. This new model of Seismic Project Management was developed for PNG and the Oil & Gas Companies that operate here.
For the first time in PNG, a PNG-owned company is now operating a world-class seismic crew on behalf of international exploration companies. The crew has recently passed 1,000,000 man-hours on the project LTI Free.
With vast local and regional knowledge and as one of the PNG’s leading suppliers of remote field support services, Oilmin aims to be the premier support service provider for major Oil & Gas Projects and other industries.
Oilmin is a TruTru PNG Company -- not just a registered PNG Entity, but a PNG-Owned Company that is and will be permanently in PNG for the good times and the bad.
During the years, Oilmin has faced several situations that put the company through some tough and trying times. These challenging times have made the company what it is today. Stronger than ever before, Oilmin will continue to grow and expand into the future.
With a new generation of the Leahy Family at the helm, Oilmin continues to expand and looks forward to new opportunities and further growth for our people. It is an exciting time at Oilmin, and the company and its staff all look forward to seeing what the years ahead will bring.
PNG Business News - July 11, 2022
Oilmin, PNG’s Leading Field Service Provider
Photo: One of Oilmin’s Campsites in PNG In Papua New Guinea, Field Service providers are constantly challenged to adapt their operations based on the particular conditions encountered at the Project area of operations. A company which has been in the business of providing these services to the oil, gas and mining sectors for the past 30 years is O.M. Holdings Limited (trading as Oilmin Field Services and Oilmin Seismic Services). Oilmin is a 100% PNG owned company which has an enviable reputation of providing safe and efficient Field Services throughout the country despite the rigorous demands of supporting exploration operations in challenging terrain. Oilmin’s core expertise includes manpower (skilled and unskilled) and expert supervision for onshore seismic acquisition surveys, construction of remote camps and the subsequent management and catering services, and civil construction projects including construction of rig pads. Oilmin’s pool of specialists includes Project Managers with a specific expertise in Seismic Crew Management, Tree Felling Specialists, Trainers, Drilling Managers, Bridging Managers, Civil Construction Managers, Camp Managers and Catering Managers. The primary task of these specialists is to bring their international experience and expertise to ensure safe operations. It is an Oilmin requirement that they assess their National workforce, train them, identify high achievers and mentor them into senior roles within the Company. This has been very successful and Oilmin now has National Chainsaw Supervisors within the company. They also have National Managers throughout Oilmin whom manage operations in the areas of Camp Management, Catering, Personnel, Human Resources and Logistics. With an established history that spans over three decades in the industry, their major clients are International Oil, Gas, Mining and Construction companies with operations all over Papua New Guinea. Mr. Fintan Lalor, Oilmin’s Operations Manager said “Recent developments has led to Oilmin partnering with Smart Seismic Solutions to offer locally based geophysical exploration services to our clients. For the first time in PNG, a PNG owned company is now operating a world class seismic crew on behalf of international exploration companies. Our clients can rely on us to sub-contract all of the support services required such as helicopters and medical services which significantly reduces much of the preparation work that historically they performed themselves.” With a vast local and regional knowledge and as one of the PNG’s leading suppliers of remote field support services, Oilmin aims to be the premier support service provider for major Oil & Gas projects and other industries.
PNG Business News - February 05, 2023
PNG Tourism Promotions Authority (TPA) and Bougainville TPA signs MOU
The Department of Commerce, Trade and Industry reached another milestone recently when it signed a Memorandum of Understanding (MoU) with the Papua New Guinea (PNG) Tourism and Promotions Authority (TPA). The MOU paves the way forward for both parties to continue bilateral partnership based on the understanding of tourism and promotions in Bougainville. The MOU was signed by the PNG TPA and the ABG Department of Commerce, Trade and Industry on the understanding relating to a joint partnership for the protection and preservation of tangible and intangible culture, development and promotion of tourism, contemporary culture and the arts and sustainable tourism in the autonomous region of Bougainville. ABG Vice President and Minister for Commerce Trade and Industry, Hon. Patrick Nisira (MHR) acknowledged the PNGTPA for its tremendous support so far since the first MoU was signed in 2016. The support has cemented many agreements already signed and has proven that Bougainville is truly a tourism destination that is worth investing time and money on. Mr. Nisira acknowledged the PNG TPA officers for their continuous negotiation with the Bougainville partners in pushing for significant income generating programmes to proceed in the region. “Standing here today it gives me great pleasure to witness and participate in this significant event that will go down in history books of this nation to be. We are here today to mark this important event on the signing of the MOU between my ministry and the department of national government and PNG Tourism Promotions Authority (PNG TPA).” This agreement adds value to our collective vision, ideas and consultations that the local tourism and cultural practitioners in both government and private sectors, he said. “As a way forward the agreement presents a realistic and workable approach to tourism development and its sustainability in the region.” “The MOU also sets out a framework for future development for tourism emphasizing on effective and determined and holistic approaches.” He said that the agreement generally outlines the pros and cons of tourism development in Bougainville and the framework and strategy of reaching the targeted goals and vision earmarked to reaching the overarching goals of economic building and development. Deputy Chief Secretary for Operations Anthony Koiri approved and signed the MOU on behalf of the Bougainville Public Service Chief Secretary who is on sick leave at the moment. The signing was witnessed by the staff of the PNG Tourism Promotions Authority (PNGTPA), Department of Commerce, Trade and Industry, senior officers and a small crowd at the Bel Isi park.
PNG Business News - February 05, 2023
PNGEITI POSITION ON PORGERA MINE LEGACY TAX ISSUES
The PNGEITI Head of Secretariat Mr. Lucas Alkan says all parties to the Pogera Mine must adhere to rules governing the extractive industry, particularly when dealing with fiscal matters that must be administered and observed according to law. His comments follow a news article on The National citing the Internal Revenue Commission (IRC) that unmet tax obligations of the Pogera mine stood in the way to expedite the mine re-opening process. Mr. Alkan says a workable and timely strategy that does not impinge on basic laws is a way forward. Below is the full comment on this issue. “The Papua New Guinea Extractive Industries Transparency Initiative (PNGEITI) commends The National newspaper for attempting to bring to light what appears to be the final outstanding issue (among others) in the Porgera Mine recommencement negotiations (more on this in footnote). We’ve noted from the reporting that taxation matters are legacy issues that appear to be standing in the way for the multi-million-kina Porgera Gold Mine to re-open. We have observed that the Government was on track to conclude negotiations and re-open the Mine by June last year, however this did not eventuate as anticipated. Attempts to reopening the Mine in the second half of last year was not feasible due to the national general elections and the formation of government. It appeared that all negotiations were concluded and a new Porgera Mining Agreement Framework was in place for the Mine to be re-opened in the first quarter of this year. Surprisingly, we learn that an old Porgera Tax liability dispute is standing in the way for the Mine to be re-opened. The early recommencement of the Mine, preferably within the first quarter of this year is critical for the country as the lead time required for mobilizing resources and the significant start-up capital needed to get the mine back into its full operating capacity would be a significant challenge. On this, we are aware there are also discussions going on with the developer and the government as to who is going to meet the startup cost but we understand Barrick Niugini Limited might meet the full cost of starting up the Mine and government would refund later but unsure as to whether this understanding has been reached or not yet. With regards to the current standoff, the EITI based on its global best practice principles is of the view that the existing law governing taxation matters must dictate or take precedence over any political intervention. We do not know the specifics of the on-going tax matter but understand that it is related to a tax dispute concerning the ‘old Porgera Mine’. If it is a significant amount of tax owed by Barrick to the Government based IRC’s audit in 2013 then it is a legal tax obligation that Barrick and its joint venture partners need to settle as required by law. We fail to understand as to why the old Porgera tax obligation/liability clause was inserted into the new Porgera Mining Framework Agreement making it a condition to resolve this legacy tax issue before reopening the Mine. If whatever was reported and commented by PM Marape recently is true then Barrick Niugini Limited and the State need to speed up the negotiation process and resolve this dispute immediately. Both parties should exercise good faith – Barrick Niugini Limited should not pull strings on this old Porgera tax liability matter and delay the re-opening of the Mine. It is understood the State (IRC) may not easily forego if there is a substantial amount of tax liability to be paid by the operator. Whatever the parties decide to do, they should resolve the tax liability issue through the due process of law but allow the Mine to re-open immediately under the New Porgera Framework Agreement. Political intervention is not recommended to resolve this dispute as this can undermine investor confidence, set bad precedence for the Government and create an uneven playing field for project developers. Barrack Niugini Limited should not put undue pressure on the State to resolve this matter politically in order to re-open the mine as it is not a best business practice. All stakeholders and the citizens have the right to know the specific issues or the nature of this tax liability issue between Barrick Niugini Limited (BNL) and the Internal Revenue Commission (IRC) as the continued delay in re-opening the Mine continues to have negative consequences on the economy. The prolonged delay has not only resulted in significant revenue loss to the Government (including the provincial and local level governments in the impacted resource area) but also loss of employment, business opportunities and spin-off benefits to the landowners and the wider communities. The shutting down of the Mine 3 years ago has had significant negative consequences on the economy including the current foreign exchange shortage that has constrained business operations in the other sectors of the economy. Porgera Mine had been a good source of foreign exchange inflows and its continued shutdown will definitely not going to contribute to the 4% economic growth (that was largely to be driven by the extractive sector) projected for by the World Bank for last year and the real GDP growth of 4% projected for this year in the 2023 National Budget. PNGEITI commends the transparent negotiation process to date that took substantial amount of time and effort to ensure the interests of all parties were reflected in those agreements. We encourage all parties to continue to respect and observe the laws of the land in this dispute resolution process to address the tax liability issue. We believe that a win-win situation for both parties (Government and Barrick) is to re-open the mine first and work together to resolve the outstanding tax liability dispute later going forward.
PNG Business News - February 02, 2023
Weir Minerals releases the 6th edition of the Warman® Slurry Pumping Handbook, the definitive resource for slurry pumps
Photo: The Warman Slurry Pumping Handbook is the definitive guide for most slurry pumping applications. Weir Minerals, manufacturer of the industry-leading Warman® slurry pump, has released the latest edition of their coveted Warman® Slurry Pumping Handbook. The 6th edition, compiled by the most trusted name in slurry pumps, features detailed engineering data required for most slurry pumping applications. Drawing on decades of Weir Minerals’ inhouse expertise in innovative engineering and slurry pumping technology, the new handbook has updated reference material based on new learnings, improved understanding and technological developments within the mining industry. With customers always in mind, the handbook aims to empower engineers to achieve optimal performance from their Warman® slurry pumps. An increased global focus on the environment, energy consumption and water conservation will influence slurry pump design and considerations – making this latest handbook an essential tool for all current and future pump engineers. “Pumping slurry has many challenges and I’m excited to publish our latest handbook, packed with fundamental theory, application advice, standard practices and latest Warman learnings from the field; all aimed to help our customers, present and future, deliver with excellence.” Marcus Lane, Director, Slurry Pumping Technology Group Weir Minerals are continually striving to shape the next generation of smart, efficient and sustainable solutions with cutting-edge science and innovation. The comprehensive handbook includes over 140 pages of detailed information, including performance charts, impeller design, part configuration, assembly and slurry considerations – fully supported by accurate technical renders and specifications. “The high quality of the reference material in this essential resource reflects the leading status of the Warman slurry pumps. As the industry leader, we have a responsibility to develop our future engineers; we will make the latest version of the Warman Slurry Pumping Handbook available not only to our customers, but also to the leading schools worldwide, so they can learn from the best in the industry.” John McNulty, Vice President Global Engineering & Technology. As part of Weir Minerals’ commitment to investing in STEM education and developing the next generation of engineers, copies of this essential resource will be gifted to the leading mining and engineering educational facilities around the world, including the winner of the 2022 Warman Design & Build competition, Deakin University in Australia.