Oil, gas can bring in K60 billion more for PNG: Botten

OIL Search Limited has estimated that the oil and gas sector will attract more than K60 billion in investment in the next seven years if given the right environment.

Managing director Peter Botten highlighted during the prime minister’s breakfast in Port Moresby yesterday the potential that the oil and gas sector had to materially and positively impact the economy.
“Papua New Guinea is in a tremendous position to expand the LNG production as there are more discovered proven probable gas resources set by now than before the PNG LNG first initial sanction,” he said.
Botten said more than 10tcf (trillion cubic feet) is available to under-ride new investments in the Elk Antelope on the PNG LNG field and the P’nyang field.
“With the right environment, oil and gas production can more than double over the next five to seven years,” he said.
Botten said the potential investment of more than K60 billion in developments, appraisal and exploration were possible in this time frame.
“Construction can lead to over 20,000 new jobs with significant spin-off economic benefits will flow from those developments,” he said.

He said there were many issues to resolve to make this happen.
“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,” he said.
Botten said this required developers to work with the state to help deliver infrastructure, address service delivery, and support both economic and social developments in the country. The National/PNG Today