OIL SEARCH REDUCES COSTS

Papua New Guinea's biggest oil and gas producer, Oil Search, has announced moves to reduce costs, and become more efficient, in response to the sharp fall in global oil and gas prices.

It will be carrying out a number of exercises, including reducing the number of staff, to sustain the company's operations over the next five years.

Managing Director, Peter Botten, says the company reached this decision after a three-month business study, which identified the need to be more efficient, in light of lower likely future revenues.

The study confirmed the need to focus activities on supporting the PNG LNG, construction of the Papua LNG and continued optimization of its core oil business in PNG.

It also found out that investments in some areas that are non core to Oil Search should be reduced.

Mr Botten said this means there will be a number of redundancies from its business across all its operations.

"It is very difficult, it's a personal issue, it's one that deals not just with the individual concerned but also with their families," Mr Botten said.

"You have to do it with transparency, with respect, and do whatever you can but at the end of the day, we have to lose staff from right across the organization to reduce cost," Mr Botten said.

There will also be changes on where they do their work and new higher investments in certain areas of its business.