RETIRING Oil Search managing director Peter Botten believes the company is a leader in the resource sector in promoting the importance partnerships. Botten, who has been in the position for 25 years, was proud to have worked with so many individuals. “I am proud to have worked with so many outstanding and committed individuals, who have not only delivered shareholder value but have contributed so much to the social and economic development of Papua New Guinea, making a real positive impact to the lives of people in that country,” he said. “I believe Oil Search is a leader in the resources sector in promoting the importance of partnerships with governments, communities and other stakeholders to drive socially responsible development, leveraging our respective strengths and building capacity in government and communities for positive social change.” Oil Search’s chairman Rick Lee said the board appreciated Botten’s long and dedicated service to the company over the past 26 years. “Under his leadership, Oil Search has grown from a small exploration and production company to a regionally significant oil, gas and LNG producer and exporter,” he said. “Peter is recognised as one of the world’s most successful corporate executives, as well as a leader in environmental, social governance and corporate social responsibility. “Peter has decided that as Oil Search embarks on its next phase of growth, with major expansion projects in both PNG and Alaska, now is the time to transition the leadership.”
MELBOURNE (Reuters) - Papua New Guinea’s biggest company Oil Search Ltd said on Tuesday long-serving Managing Director Peter Botten will retire from the firm next year after 25 years in the role, just as the company enters a major growth phase in PNG and Alaska. Botten will be succeeded by senior executive Keiran Wulff in February and will step down from the board on Aug. 25. “Under his leadership, Oil Search has grown from a small exploration and production company to a regionally significant oil, gas and LNG producer and exporter,” Oil Search Chairman Rick Lee said in a statement. Wulff currently leads Oil Search’s operations in Alaska, where the company recently doubled its stake in a promising oil prospect and aims to make a final investment decision in 2020 on a roughly $5 billion project. “It’s pretty big shoes to fill. He was the most logical candidate. He’s certainly well regarded,” said Andy Forster, senior investment officer at Argo Investments, which owns Oil Search shares. Botten is stepping down at a crucial time for Oil Search as its larger partners in two liquefied natural gas (LNG) projects in Papua New Guinea, Total SA and Exxon Mobil Corp, look to push through a $13 billion plan to expand gas exports. Oil Search’s shares fell 1.9%, against a 0.6% drop in the S&P/ASX 200 energy index, reflecting some worry about Botten’s retirement, even though it had been well flagged. “His departure presents risks to the company’s internal functioning alongside political and market engagement risks at a delicate point in Oil Search’s growth trajectory,” said Credit Suisse analyst Saul Kavonic. However, Wulff said Botten has set up the company well for the transition, recently creating PNG and Alaska divisions and bringing in experienced international managers. He also played down concerns that political issues in Papua New Guinea could stall an agreement with Exxon on development of the P’nyang gas field, which is needed before a final investment decision on the PNG LNG expansion. “We’re very confident. The reality is these projects are fundamental to Papua New Guinea long term and its aspirations ... to develop a broader based economy,” Wulff told Reuters in an interview. Botten fended off an $8 billion takeover approach in 2015 and the company is again seen as vulnerable to a bid as its share price has slipped amid the political ructions in PNG, but Wulff was undaunted at the prospect.
Keiran Wulff will replace long-standing Oil Search chief executive Peter Botten at the company. Nic Walker
By Angela Macdonald-Smith - Financial Review
Incoming Oil Search CEO Keiran Wulff has big shoes to fill and challenges in both Alaska and the Pacific when longstanding boss Peter Botten steps down next year.
The firm's chief in Alaska and an experienced hand in PNG, he will be able to call on his predecessor's experience and expertise at least until August next year when Mr Botten retires.
But with a $US14 billion LNG expansion in PNG delayed after the change in government earlier this year and lingering investor uncertainty over the Pikka oil project on Alaska's North Slope, the carefully structured leadership transition is still seen as posing risk.
"Botten is a legend of the region's LNG industry and cannot be easily replaced after a spectacular 25-year innings," said Credit Suisse energy analyst Saul Kavonic, pointing to his key leadership role in company strategy and internal organisation as well as political and market engagement.
"We have doubts whether Oil Search is functionally prepared for this departure."
Shares in Oil Search dipped 1.8 per cent to $7.19 after chairman Rick Lee announced Dr Wulff, who first joined Oil Search in 1993, had been appointed chief executive officer designate ahead of the first CEO change for a quarter of a century.
Mr Lee, who flagged in May that succession planning was well advanced, said Mr Botten had decided, with full support from the board, that now was the right time to transition the leadership.
He said that after an extensive internal and external search process, the board had agreed unanimously that Dr Wulff was the person "with the necessary experience, leadership skills and vision to take Oil Search into the future".
RBC Capital Markets analyst Ben Wilson said an insider appointment was a "natural fit" given the growth strategy was well set for PNG and Alaska and given that navigating the political and regulatory environment in both PNG and Alaska was "of critical importance".
"Botten’s depth of relationships in PNG won’t easily be replaced, however Dr Wulff has more relevant experience than most on this front," he said.
Still, Simon Mawhinney at investor Allan Gray, which has reservations about the Alaska entry, said capital allocation decisions were probably more important.
"There are so many uncertain outcomes that present for this company in the coming one to five years that it's really hard to know how they unfold and it's also hard to know how important the CEO is in that, given how large a portion of those assets sit inside a joint venture of which they are not the operator," Mr Mawhinney said.
He suggested that Mr Botten's close relations with the previous PNG government under Peter O'Neill may mean a change of CEO is positive.
The date of Mr Botten's exit has been a source of market speculation for several years. Some have even suggested that it could leave Oil Search vulnerable to a takeover, especially after a softening in the share price earlier this year due to the delays in the $US14 billion ($20.7 billion) LNG expansion.
Speaking to The Australian Financial Review, Dr Wulff rejected any suggestion that Oil Search was vulnerable, pointing to the managed transition process that will see Mr Botten remain an asset for the company for some time.
Long-standing CEO Peter Botten is retiring. Brendon Thorne
"Peter has been such a strong leader, we've made sure that we're not just overnight going to be in a situation where there's a vacuum and there's certainly not," he said.
"There's never a good time for a leader of 25 years to leave and it's just a matter of making sure the company is well prepared when it does occur."
Success under Botten's leadership
Mr Botten, among the three longest-standing chief executives of ASX-listed companies, has taken Oil Search from a $250 million explorer into the big league, primarily through its stake in the ExxonMobil-led PNG LNG venture, which started up in 2014.
Should the next expansion go ahead as planned, Oil Search is set to more than double its production again over the next five years.
Wulff's remuneration
News of the transition comes amid heightened tensions over the benefits flowing from multi-billion-dollar LNG investment in PNG, and the public and political concerns over the UBS loan to the government for the purchase of Oil Search. But Dr Wulff said those issues had "zero" impact on the CEO changeover.
"It's been a long planned process that the board has gone through and those activities or circumstances have had zero impact and that’s categorical," he said.
He rejoined Oil Search in 2015, taking charge of the cost and efficiency drive after the crash in oil prices, and leading negotiations that saw Oil Search enter the Papua LNG project, now led by French major Total.
Dr Wulff will receive fixed pay of $1.7 million plus short-term and long-term incentives and is on an ongoing contract with no fixed term.
That compares with Mr Botten's fixed salary of $2.374 million, which will continue until his retirement date, when he will receive six months' pay plus accrued leave. He is subject to a non-compete clause until August 2021 in return for a further $2.374 million.
Washington (CNN)A former Interior Department official who oversaw oil and gas drilling on federal lands is joining an oil company with plans to expand operations in Alaska, The Washington Post reported Wednesday.
Joe Balash, who served as the department's assistant secretary for land and minerals management since late 2017, confirmed to the Post that he plans to begin working for Oil Search, a Papua New Guinea-based company that is "developing one of Alaska's largest oil prospects in years." Balash resigned from his post at the department last Friday, according to the paper.
Balash joins a growing list of former Trump administration officials who left their posts with the government for private sector jobs in industries they helped regulate, raising concerns among government watchdog groups and ethics experts. That list includes former Environmental Protection Agency chief Scott Pruitt who began consulting for a Kentucky coal baron after resigning last year amid an ethics scandal.
The Post said Balash, who would not divulge details of his new role with Oil Search to the paper, said he would "abide by the Trump ethics pledge barring appointees from lobbying their former agencies for five years" despite the fact that he would be managing employees who would coordinate with the federal government on energy policy.
"I have a ton of restrictions dealing with the Department of Interior. Most of Oil Search's properties are state lands. There isn't really the federal nexus," Balash told the Post, which noted that the company has not bid on federal leases in Alaska.
According to the paper, the company has been "aggressively" growing its drilling operations in Alaska on state lands that are near two federal reserves the Trump administration is pushing to increase oil and gas development in. At Interior, Balash oversaw the department's lease sales on parts of those two reserves, the Post said. The paper also said Balash met with executives from the company multiple times while serving at the department.
CNN was unable to reach Balash for comment, and the Interior Department did not respond to CNN's request for comment on his new role.
Ethics experts told the Post that Balash's new role "raises potential conflict of interest issues, although part of it would depend on the nature of his negotiations with the firm before he left public office."
"At the point Balash began discussing employment opportunities with Oil Search, he was prohibited from personally and substantially participating in any particular matter that would affect Oil Search's financial interests," Brendan Fischer, a federal reform program director at the Campaign Legal Center, told the paper.
Danielle Brian, the executive director of the Project on Government Oversight, told the Post that "If this ends up being legal," it'll be "hard to have confidence that decisions he was making while he was working for the taxpayers were not impacted by his aspirations or hopes to go work for a company that was materially affected by his work."
An ex-top official in the US Interior Department is joining a Papua New Guinea-based oil company days after leaving the Trump administration.
Joe Balash served roughly two years as the Department of the Interior’s assistant secretary for land and minerals management. Balash announced his departure from the government on Friday and confirmed his new position at Oil Search in an interview with the Washington Post on Tuesday.
Balash's work at the Interior included expanding oil development on federal lands in Alaska, such as the 1002 Area in the Arctic National Wildlife Refuge. The 1002 Area is a 1.5 million-acre oil reserve created in 1980 as part of the same legislative package that established ANWR.
The Trump administration’s ethics pledge, which Balash signed after joining Interior, prohibits ex-administration officials from lobbying their former agencies for five years after they leave. Oil Search’s operations in the United States include Alaska, though the company’s business is largely on state lands.
Balash will work on energy policy for Oil Search. He said he will abide by the ethics pledge and refrain from lobbying Interior officials, but "I'll supervise those who do" need to work with the federal government.
"I have a ton of restrictions dealing with the Department of Interior," Balash said. "Most of Oil Search's properties are state lands. There isn't really the federal nexus."
By DALE LUMA - The National THERE has been a drop of more than US$2.5billion (K8.5bil) in Oil Search Ltd (OSL) share price value largely due to unpredictable activities in the Papua LNG Project, says OSL boss Peter Botten, pictured. The company managing director said the uncertainty in the timing of the project caused a large value to be removed from OSL’s share prices over the last few months. “There has been a decline in our share prices since May this year by over US$2.5 billion (K8.5bil) which is largely related to events in Papua New Guinea,” Botten said. “Clearly, the last few months have tested the confidence of investors with financing, insurance cost rise and ongoing uncertainty about what’s happening in Papua New Guinea. “Predictability and stability is key to investor confidence and without this, the business becomes harder. We are the largest investor in PNG and when the country wobbles, we will wobble as well. “Off course, we fully recognise and respect that any government has the right to review agreements, however, the Papua joint venture believes that the agreement that was signed earlier on in the year provides the State with greater benefits, quite rightly, than the PNG LNG Project. “As PNG’s largest investor, we are very sensitive of this uncertainty surrounding where the Papua LNG agreement is going and we are working extremely hard to work with our joint venture partners and the Government to resolve any outstanding issues in a timely way.”
Oil Search warned on Tuesday that costs for a $13 billion plan to double gas exports from Papua New Guinea could rise if talks on a gas agreement between the government and Total SA drag on beyond next week.
Australia-listed Oil Search is a partner in Total’s Papua LNG project and Exxon Mobil Corp’sPNG LNG project, which together aim to double LNG exports from the impoverished Pacific nation to around 16 million tonnes a year.
PNG’s new petroleum minister, Kerenga Kua, last week suddenly set out to renegotiate a gas deal with Total, which the company had signed in April with the previous government. Neither side has commented on the talks held last week in Singapore.
Oil Search Managing Director Peter Botten said on Tuesday further talks are planned this week and next week, with the aim of reaching an agreement by the end of August.
“It’s a dynamic environment at the moment,” said Botten, who was in Singapore during the talks, adding that he had been fully briefed on them.
He declined to comment on what issues have yet to be resolved or say how confident he was a deal would be done by the end of next week.
“I’m not going to put odds on it,” Botten told Reuters in an interview.
“We’re doing whatever we can to work with whoever we can to try and get this resolved as quickly as possible. Time is running out though.”
Botten has led Oil Search, PNG’s biggest company, for 26 years and has faced delays on projects before, but said the current uncertainty was rare in a country that has had a “very stable fiscal regime” for many years.
“It’s unusual that this is happening at such a critical time in the project.”
The Papua LNG project had already lined up bids from contractors to do preliminary engineering and design work, but those are due to expire in September, he said.
The companies risk having to pull together new bids if the existing bids fall over, and could face higher costs.
“It would be done in a market that probably would have a higher level of expenditure as the capacity in the market gets soaked up by new projects in other parts of the world,” Botten said.
Oil Search on Tuesday reported its half-year profit more than doubled to $161.9 million for the six months ended June 30 from a year earlier, just ahead of a consensus estimate of $160 million, on strong output from the PNG LNG project and higher oil-linked LNG prices.
The result last year was hurt by a shut down of PNG LNG following a major earthquake.
SYDNEY: Oil Search says both its second-quarter production and revenue have dipped by 5 per cent as expected, but analysts were reportedly looking for a more substantial first-half recovery after last year’s earthquake in Papua New Guinea. The company said total production for the April-June period came in at 6.9 million barrels of oil equivalent, down from 7.2 million barrels a year ago on account of scheduled maintenance activity, with first half production 38 per cent higher at 14.1 million barrels. This reflects the damage caused during the prior corresponding period when a devastating earthquake halted operations. Based on performance to date, production guidance for the 2019 full year is 28 – 31 million barrels, with the upper end slightly down on the previous outlook. The company’s ASX-listed shares fell 2.18 per cent to US$7.18 (K24) by 1427 AEST, with Reuters reporting the first-half update had missed Refinitiv Eikon estimates. Revenue for the second quarter was US$378.9 million (K1,253mil), down from US$398.1 million (K1,316mil) a year ago. First half 2019 revenue was 39 per cent higher at US$777 million (K 2,569mil). The company also lowered its full-year investment expenditure guidance to US$500 million (K1,653mil) to US$610 million (K2,017mil) from US$545 million (K1,802mil) to US$655 million (K2,166mil) following delays for the expansion of its PNG gas plant. Meanwhile, Oil Search said talks with the Papua New Guinea government on the P’nyang gas agreement are on hold until the government – led by Prime Minister James Marape – completes a review of the Papua LNG agreement. – AAP Go to this link for more: https://www.thenational.com.pg/oil-search-production-revenue-drop-by-5pc/
MELBOURNE/SYDNEY (Reuters) - Papua New Guinea’s new prime minister used Oil Search Ltd’s (OSH.AX) 90th birthday to press the country’s biggest company and its oil major partners to pay more tax to the impoverished Pacific island nation.
Prime Minister James Marape’s comments come as Oil Search and partners Exxon Mobil Corp (XOM.N) and Total SA (TOTF.PA) face delays on a $13 billion plan to double liquefied natural gas (LNG) exports from the country, with the new government seeking to win more from resource projects.
Oil Search has long prided itself on work it does in PNG communities, including funding health care and literacy programs, but Marape said that was not the company’s job.
“So going into the future we will not be asking much of you in terms of community service obligation, but we will be asking you to pay your fair share of tax,” Marape said in a speech at Oil Search’s 90th birthday celebration in Port Moresby last Friday. Excerpts were released on Tuesday.
“We will be asking of you and others in the industry for a greater participation in ... downstream processing. We’ll be asking of you for a clearer, better definition of what local content is,” he said.
Oil Search had no immediate comment on the speech.
The company on Tuesday pared its full-year capital spending guidance by $45 million to between $500 million and $610 million due to a delayed start to front-end engineering and design work for the expansion of the Exxon-operated PNG LNG plant.
The expansion is due to be fed by gas from Total’s Papua LNG project, the P’nyang gas field and existing fields.
Oil Search said early work has been delayed because talks with the government on developing P’nyang have been put on hold while the new government reviews the Papua LNG agreement, signed in April.
Oil Search shares fell 2.6% in a flat broader market after it reported the delay and second-quarter revenue that missed estimates by a wide margin.
Revenue for the quarter ended June 30 rose to $378.9 million from $262.8 million a year earlier, when a deadly earthquake forced a shutdown of PNG LNG. Citi had expected quarterly revenue of $421 million.
Compared with the first quarter, production was hit by 13 days of slower output in late May to early June amid planned maintenance at PNG LNG. Sales were flat but revenue fell due to weaker LNG pricing, tied to lower oil prices, Oil Search said.
Reporting by Sonali Paul in Melbourne, Tom Westbrook in Sydney and Devika Syamnath in Bengaluru; Editing by Subhranshu Sahu and Richard Pullin
Oil Search Foundation (OSF) is supporting Rotarians Against Malaria (RAM) as they work to prevent malaria in remote parts of PNG. Launched last August, and due to run until at least late 2020, the OSF-RAM partnership will ensure that appropriate medicines are always on hand in Gulf and Hela hospitals, and provide communities with mosquito nets. And it’s off to an excellent start. By providing transport, accommodation and logistical support, along with a vast list of good local contacts, OSF has already helped RAM teams deliver over 130,000 nets to some 260,000 residents all over the province. For OSF’s Ruby Kenny, the smooth six-week operation provided an example of partnership at its finest. “Rotary sourced their own funds, OSF provided some of the logistics support and together we delivered a tangible benefit to communities. By working together, we travelled quicker and further into remote areas than we ever could have managed if we were working alone to ensure people benefited.” Designed to kill mosquitos, or at the very least prevent them from biting people in bed, the long-lasting nets come from technology that has led to sharp decreases in malaria all over the world. As Ingersoll neatly puts it, “the distribution of mosquito nets is a gift to our people to reduce mosquito-borne disease. Everyone benefits – except the mosquito!” OSF and RAM are now focussed on providing health services in Kikori District, Hela Province and Kutubu District – three remote regions where Oil Search has facilities that can support the distribution, and a long track record of serving the community. And as OSF Executive Director Stephanie Copus-Campbell points out, there is really no time to waste. “After being in decline for well over a decade, malaria is on the rise once again. The last few years have seen a huge increase in the number of cases all over the country, with a high proportion of those becoming ill being children under 15.” It is important to get on top of prevention and treatment quickly and simple mosquito nets are still one of our best prevention weapons.” “RAM is a wonderful organisation which has been fighting the good fight for a great many years. We are extremely proud to now stand by their side.” For RAM’s Munir Ahmed, the partnership with OSF has provided the organisation more, and more cost-effective, access into remote communities in Hela, Gulf and Southern Highlands Province. “OSF has a strong presence and connection with local communities and health facilities which makes RAM’s work easier and sustainable with regards to the distribution of Long Lasting Insecticide Nets (LLIN), malaria diagnosis and treatment. OSF medical staff join the RAM team during quarterly health centre visits to ensure the uninterrupted supply of malaria commodities like drugs, test kits and nets, and also to collect malaria program data from remote health workers in a timely manner. “This is a sustainable and a cost-effective program model. OSF also provides local level security, accommodation, food and vehicle support to RAM staff during quarterly health facility visits and a storage facility for malaria commodities.” Go to this link for more: https://www.oilsearchfoundation.org/media-1/2019/6/13/osf-joins-battle-against-malaria
Papua New Guinea Prime Minister James Marape has urged investors in the mining and petroleum sectors to consider the interest and benefit of the resource owners and the country.
Prime Minister Marape said this when responding to the Managing Director of Oil Search Peter Botten, who said the new Government led by Prime Minister Marape should be investor friendly.
“I know Oil Search Managing Director, Peter Botten came out a while ago in the media asking me to be investor friendly.
“Peter Botten knows that I am investor friendly. But I am more concerned for the interests and benefits and speaking for the 8 million shareholders of this country.
“That is what this generation of leaders wants in our country. That is the catch cry of these leaders and our country and what our people want,” said Prime Minister Marape.
He said that his Government welcomes new investors and encourages those already in the country to continue investing in the economy.
“I am not in the business of harming our investors in the country. Other investors in the country and our partner investors, ExxonMobil, Oil Search, Total, Santos, Nippon Oil, they have been with us for a long time.
“We are in the business of now consolidating on these investments here, as well as attracting new investors into the country.
“But, as I speak I want to first pick the lowest hanging fruits to improve our economy, improve on areas of domestic market obligations, areas of local content, and in improvements in greater equity participation in the resource sector by our landowners.
“We are tired of being rent collectors. Sometimes down the line, whether that is in 2022 or 2025 with the best advice from the Petroleum Department and with the new Ministers we will be making regime shift and change in the resource laws and most importantly it will be friendly to the investors.
“But more so importantly friendlier to the interests of the 8 million people of our country and the benefits they truly deserve.
“And that is by making sure that our economy gets the residual benefit from those resources.
“And I make no apologies to anyone. I make no apologies. If you don’t like the way I am speaking, pack up and leave.
“I am more about adding value to the economy and for my people to benefit,” said Prime Minister Marape.
Prime Minister Marape on May 30th during his maiden speech after his election as the 8th Prime Minister of PNG told Parliament he does not want any international conglomerates in the resource sector to dictate to his Government what to do and or change the laws to suit their interests.
He said he would tweak and turn the resource laws for the benefit of the resource owners and the country. Prime Minister Marape said his intention is not to chase away investors, but wants maximum benefit and meaningfully participation by landowners and the Government in the resource development.
By Matthew Stevens | Australian Financial Review Don’t imagine for a second that Oil Search sits wholly calm amid the storm created by the dumping of long-standing Papua New Guinea prime minister Peter O'Neill and the company’s place in the events that proved a tipping point in the collapse of political support for him.
In the lead-up to O’Neill’s replacement by leadership neophyte James Marape, Oil Search made wholesale changes to the way it manages its external affairs, delivering new blood to its media management and inviting Crosby Textor to take on the driller’s reputation management.
The most immediate effect of the Oil Search deckchair shuffle is that long-standing general manager of investor relations and communications, Ann Diamant, appears to have lost half of her brief to a former PNG television executive.
A familiar media contact point through her 16 years with Oil Search, Diamant has surrendered the day-to-day of communications and media management to a new face in the Australian media landscape. The new vice-president, communications and media, is Matthew Park.
Park lands at Oil Search with an ANU law degree, six years' experience in policy advisory with the Australian Communications and Media Authority and a whole lot of experience in PNG television. His most recent job of import was running a TV station in PNG and, even more recently, he ran PR for PNG’s APEC advisory council. But, according to his various CVs, that is about as close as he has got to knowing who’s who in the zoo of Australian media, or media anywhere but PNG for that matter.
Oil Search insiders suggest this shift and the decision to appoint Crosby Textor shows just how unnerved the company is by regime change rolling out in PNG.
As The Australian Financial Review reported on Friday, Marape continues to send mixed signals about his future relationship with Oil Search and its much more powerful partners in PNG liquid natural gas, Exxon and Total.
The house view at Oil Search is that Marape might seek changes to a recent deal with Santos that aligns the ownership of the P’nyang gasfield with a proposed LNG development, but that previous investment agreements will be left untouched.
By Angus Grigg and Lisa Murray | Australian Financial Review
Papua New Guinea’s new Prime Minister, James Marape, has appointed one of the most outspoken critics of a recently signed gas deal as the responsible minister and taken a swipe at Australia’s Oil Search in announcing a cabinet full of surprises on Friday afternoon.
In swearing in Kerenga Kua as the Minister for Petroleum, Mr Marape noted he was a lawyer who “shared his vision” for reforming the sector and maximising gains for PNG.
Mr Kua has previously said the $US14 billion ($20 billion) Papua LNG project, agreed in April, should be reviewed for its legality, potentially opening the way for the deal to be renegotiated.
The new Prime Minister has said he would not seek to unwind existing contracts. However, looking into the legality of this and other deals could be a way to reopen negotiations.
“We will come to a position that everyone is comfortable with without disrupting business," Mr Kua said when asked about the Papua LNG project after being sworn in.
"But [we will] ensure there is an equitable distribution of benefits which come out of these resource projects.”
Mr Marape used the occasion to take aim at Oil Search chief executive Peter Botten, following a speech Mr Botten made in Sydney on Thursday.
“Peter Botten knows me. I’m investor friendly but I also have to win for the 8 million shareholders of this country,” he said.
Prior to this the Prime Minister said he would not apologise for his comments on getting a better deal for the country out of resource projects.
“If you don’t like the way I’m speaking … pack up and leave,” he said.
This skirmish follows Mr Botten saying that any delay in the Papua LNG project would have it leapfrogged by other projects around the world.
"We can't wait too long before our place in the queue slips," Mr Botten said. "The government is aware of this, as is the new Prime Minister."
ExxonMobil and Total are spearheading the PNG LNG and Papua LNG projects, in partnership with Australian resources players Santos and Oil Search.
Shining a light on corruption
The other surprise move on Friday was the appointment of Bryan Kramer, a popular but outspoken opposition figure, as Police Minister.
Mr Kramer, who has over 117,000 followers on his Facebook page, has said former prime minister Peter O'Neill should face criminal prosecution and has written scathing articles about the UBS loan affair.
He said the deal, which had PNG borrow $1.2 billion from UBS to buy into Oil Search, would "go down as one of the dumbest investments in PNG's history".
His appointment should ensure ministerial-level support to further investigate the loan affair, which cost PNG $400 million.
On Friday, Mr Kramer said his main priority was keeping the people of PNG safe but he would also be looking at high-level corruption.
Shane McLeod from the Lowy Institute said Mr Marape had delivered a pointed and substantial shake-up of the ministry.
“Bringing across prominent opposition voices Kerenga Kua and Bryan Kramer – and placing them in key portfolios of Petroleum and Police – shows that Marape is serious about distancing himself from his predecessor, and shining a light on resource deals and allegations of corruption,” he said.
WOMEN from Hela and Southern Highlands are currently participating in a training programme to help them become better leaders in the workplace. Challenged by their remote location, the provinces cope with the reality of gender imbalance in decision making, violence, security issues, and the need to develop good leaders. Recognising that women play an important role to achieving positive change at the community level, the Oil Search Foundation (OSF) has supported the inclusion of two women from these provinces to participate in a leadership and management course organised by the Business Coalition for Women. In partnership with WINGS Education PNG, the course focuses on better communication, effective leadership, managing relationships, building networks, identifying risks, analysing and presenting information. Sr Pauline Rex Nathan, officer in charge of maternal child health clinic at the Pimaga Rural Hospital and the Hela Health Authority’s district health manager for Koroba-Lake-Kopiago Rebecca Puruma, were part of the training designed specifically for women in Papua New Guinea. Oil Search Foundation’s Head of Gender and Leadership, Amanda Anderson highlighted the importance of supporting women to be effective leaders and managers: “Having more women in leadership can improve innovation and decision making. “It was reported by Pacific Women that by mid-2014, 23 per cent of all senior management positions and 31 per cent of middle management positions in Papua New Guinea’s government agencies were occupied by women, but women were still poorly represented at provincial level. Nathan and Puruma completed their first contact session this month. OSF acknowledges the leadership of the Hela and Southern Highlands’ Provincial Health Authorities who supported the two women attending the training. “I would like to thank OSF for sponsoring me to attend this training.” Go to this link for more: https://www.thenational.com.pg/women-get-gender-leadership-training-to-apply-at-workplace/
SYDNEY (Reuters) - New Papua New Guinea Prime Minister James Marape doubled down on his plans to earn more taxes from the gas-and-gold-rich country’s natural resources sector on Wednesday, but said major reform would not take effect for years. That will come as a relief for oil giants such as France’s Total SA and ExxonMobil Corp which have done deals and were wondering if Marape would put them up for review. Marape, a former finance minister, had the firms on notice last week when he was elected and promised he would be “taking back” the economy after the resignation of his predecessor, Peter O’Neill. In an address broadcast around the rugby-league loving archipelago as thousands tuned in for the State of Origin match, a big derby in Australia screening afterwards, he promised to review resource laws in a “very, very big way,” but not quickly. “While I’m speaking on natural resources, many of our corporate citizens amidst us will feel a little bit doubtful or will feel a little bit intimidated, will feel a little bit insecure,” he said. “But you must not feel that way ... I’m looking at 2025 in which we will migrate to a new legislative framework.” Marape had sparked months of political chaos in the South Pacific archipelago when he quit as finance minister over the government’s handling of a gas agreement struck in April with French oil major Total SA. He rode a wave of discontent over that deal, and an earlier one with ExxonMobil Corp, into the top office, triggering a new round of scrambling - this time from commodity firms clamoring to meet and lobby him. Mark Bristow, chief executive of the world’s second-biggest gold producer, Canada-listed Barrick Gold Corp, traveled to the capital, Port Moresby, to negotiate an extension to a large mining lease expiring in August. Barrick and China’s Zijin Mining each owns 47.5 percent of the highlands’ Porgera mine, which Barrick said has paid 4.2 billion kina ($1.2 billion) in taxes and royalties since it began operations in 1990. Oil Search Ltd, a partner in Exxon and Total’s multibillion dollar liquefied natural gas developments, has scheduled a meeting for next week, a spokesman said.
Marape’s remarks imply, as Total has said it expects, that April’s contract will be honored, but the changes he again forecast envisage a tougher approach in future. “(I’ll be) looking to ensure that the oil and gas sector is beneficial to our country as well as our investors,” Marape said.
