Oil Search to lose veteran boss in 2020 amid big growth push

By Sonali Paul - Reuters

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.


“At the moment some of the issues in Papua New Guinea have affected us a little bit, but frankly, we’re well prepared for that. But we don’t see that as an issue going forward,” he said.

Go to this link for more: https://www.reuters.com/article/us-oil-search-moves/oil-search-to-lose-veteran-boss-in-2020-amid-big-growth-push-idUSKBN1WG2PJ

Oil Search taps Wulff as CEO Botten to retire

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.

Dr Wulff will take over from Mr Botten on February 25, but will have to navigate uncertainties casting a shadow over the oil and gas producer's biggest growth project in Papua New Guinea.

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.

A geologist by training, Dr Wulff worked at Oil Search from 1993 until 2008, before leaving for roles in Australia to be closer to his young family. These included a stint as managing director of Western Australian junior explorer and producer Buru Energy.

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.

Go to this link for more: https://www.afr.com/companies/energy/oil-search-taps-wulff-as-longstanding-ceo-botten-to-retire-20190930-p52w87

Komo league ends season with first grand final

Posted on The National

KOMO Rugby League Association had its first grand finals on Sunday, signifying a historic achievement for the district.
The inaugural season has seen Komo produce female, Under-20 and the A-grade teams.
Under-20 player Humule Thomas Wabe made it into the Highlands side at the regional championships in Goroka.
Sunday started with Topai Python and Gateway Dust facing off in the women’s division. Gateway Dust won 3-0.
The B-Grade fixture was the second match of the day, with Elawi Sharks beating Topai Tigers 2-1.
The last game was the men’s grand final. Kupe Eels’ Ikipe Amenaya scored the opening try and man-of-the-match Aipe Kamia scored the last four-pointer to secure a 18-8 win over the Tigers
Hela Sports and Youth coordinator Ken Angobe, ExxonMobil PNG’s Kim Hahn, Murray Johnson and Elly Sawa and Hides Gas Development Corporation operations manager Abel Voyorite attended.
Kim Hahn when making the presentation said the tournament had brought peace and unity to the community. She said it had broken down barriers and had included all members of the district.
“We are glad that we have been here with you since day one when you started this journey and you have truly inspired us as well as other communities who now want to be like you,” Hahn said. Angobe thanked ExxonMobil PNG and Hides Gas Development for their support towards the association.
Angobe praised the community and the players for displaying a safe and eventful day of matches.

Go to this link for more: https://www.thenational.com.pg/komo-league-ends-season-with-first-grand-final/

Kumuls named for 9s

Posted on The National

BRISBANE Broncos hooker James Segeyaro is expected to captain the Papua New Guinea LNG Kumuls at the Rugby League World Cup Nines in Sydney, Australia, from Oct 18-19.
Hela Wigmen centre Stanford Talita is the only fulltime Digicel Cup player named in Michael Marum’s 16-man squad. Announcing the national sides yesterday, PNG Rugby Football League chairman Sandis Tsaka said the Kumuls and Oil Search Orchids (women) players were selected on form and performance, with most having just completed their season.
Orchids executive committee chairman Ruth Waram said the team were selected on agility and speed.
“We may still be finding our feet in the 13s game but this shorter version will suit our style and athleticism, which we naturally have,” Waram said.
Waram said the team would be coached by Bagelo Solien.
“He did a good job with the women at the Pacific Games and against the Brisbane Broncos women’s team last month so I have every confidence and support in him,” Waram said.
Kumuls executive committee chairman Sudhir Guru said Marum and the national selectors had picked a strong team and “they will do us proud in this shorter version”.
Only four nations – Australia, New Zealand, England and PNG – are competing in the women’s tournament.
Twelve nations are competing in the men’s tournament with the Kumuls in Pool A alongside Australia, New Zealand and the United States.
England, France, Lebanon and Wales make up Pool B while Pool C has Tonga, Fiji, Samoa and the Cook Islands.
The Kumuls and Orchids will assemble in Port Moresby on Monday.
The tournament will be played at Bankwest Stadium – home of the Parramatta Eels.
Kumuls: Stargroth Amean (Barrow Raiders), Watson Boas (Barrow Raiders), Edwin Epape (Wynnum Manly), Edene Gebbie (Wynnum Manly), Lachlan Lam (Sydney Roosters), Kyle Laybutt (Townsville Blackhawks), Bernard Lewis (Sydney Roosters), Garry Lo (Hunters), Rhys Martin (Leeds Rhino), Justin Olam (Melbourne Storm), Nixon Putt (North Devils), Daniel Russell (North Queensland Cowboys), James Segeyaro (Brisbane Broncos), Jedidiah Simbiken (Redcliffe Dolphins), Stanford Talita (Hela Wigmen), Terry Wapi (Hunters).
Orchids: Elsie Albert (UNRE Cowgirls), Catherine Anjo (Hohola Flies), Heather Ario (Gabutu Dragons), Lekiellia Brown (Wentworthville Magpies), Shae-Yvonne Dela-Cruz (Easts Tigers), Carol Francis (Gabutu Dragons), Shirley Joe (Eriku Panthers), Janet Johns (Hanuabada Hawks), Roswita Kapo (Paga Panthers), Sera Koroi (Goodna Eagles), Ua Ravu (Leeton Greens), Jacobeth Wake (Royas Ramu League), Joyce Waula (Blackswan Royals), Veronica Waula (Royals), Angelo Watego (Capalaba Warriors), Josephine Wong (Nightcliff Dragons).

Go to this link for more: https://www.thenational.com.pg/kumuls-named-for-9s/

Chinese president hails PNG’s affinity with table tennis

Posted on The National

Chinese President Xi Jinping, one of the most powerful persons in the world, is delighted with Papua New Guinea’s affinity with table tennis.
National table tennis representative Geoffery Loi had written to Xi on July 15 but never thought that the 66-year-old would respond to his letter.
The Tubusereia villager was taken by surprise when Chinese Embassy deputy chief of mission Yao Ming delivered Xi’s letter to him at the Convention Centre in Port Moresby yesterday.
In his letter, Xi wrote: “I have received your letter, dated July 15, which reminds me of my visit to PNG last year when I watched you and your teammates training with Chinese coaches.
“I am delighted to hear that you all love learning the Chinese language and culture as well as ping pong (table tennis).
“Congratulations to you and the PNG table tennis team for delivering a great performance at the Pacific Games and making your country proud.
“I wish you and your team still greater success.”
Yao said China valued its relationship with PNG through sports and economic ties.
“We will continue to support table tennis in the country as it is the national sport in China,” he said.
Loi said he was grateful to Xi for taking some time out of his busy schedule and to respond to his letter.
“This shows that he (Xi) supports PNG sportsmen and women in their careers,” he said. PNG Table Tennis Federation president George Shao praised the continued support of China and the Chinese business community in the country.
“We are again sending four athletes — Geoffrey, David Loi, Maryann Hane and Leah Taru — to Shanghai University in China to undergo table tennis training for two weeks.
“I thank the China Table Tennis College for it support in helping develop table tennis in the country.”

Go to this link for more: https://www.thenational.com.pg/chinese-president-hails-pngs-affinity-with-table-tennis/

Row over budget

Posted on The National

DEBATE on the 2019 Supplementary Budget has started even before is it tabled by Treasurer Ian Ling-Stuckey in Parliament, with Opposition MPs calling the figures “misleading”.
Prime Minister James Marape is confident Ling-Stuckey will provide the correct “economic numbers” for the 2019 Supplementary Budget and the 2020 Budget, based on areas the Government team has been working on with the International Monetary Fund (IMF), Treasury, the World Bank and others.
“What the Treasurer is doing is to fully ascertain our present economic conditions for us to offer solutions to take our country out of the present (economic) conditions,” Marape said.
“When I was finance minister, I was part of the government that deliberately entered into debt financing so we could do economic projects.
“But along the way, the areas of investments influenced by the then prime minister (Peter O’Neill) differed against some of our opinions.
“And these investments now add up to our present debts.
“Whether it is at K27 billion or above K30 billion, the fact is that it is still very high and possibly above requirements of the Fiscal Responsibility Act.”
Marape said his Government wants to establish where the true economic position of the country was and put forward policies and programmes in 2019 and 2020 “that should take us out of this mess”.
Opposition Leader Belden Namah and Shadow Treasurer Joseph Lelang refuted, saying the figures provided by Ling-Stuckey were “influenced by foreign due diligence group” and therefore unrealistic.
They allege that it “is a dangerous trend and a threat to national sovereignty” if “foreigners” are allowed to influence the 2019 Supplementary Budget and the 2020 National Budget.
Lelang doubted that the Budget, as claimed by Ling-Stuckey, was being assessed and verified by the IMF.
He said the IMF only provided surveillance and based their report on figures provided by the due diligence team.
Lelang cautioned Ling-Stuckey “not to mislead the nation” because the purpose of the IMF’s mission to PNG is to do surveillance of its policy and economy”.
He said the IMF reported a K2.7 billion blow out which was based on the figures provided to them by the Treasurer and his team.
Meanwhile, Marape said one of the reasons he had resigned from the O’Neill-led Cabinet was because his “protests” against budget policies, expenditure priorities were not acknowledged.
“The latest was my protest last November when I had no knowledge of budget frameworks, yet I was forced to support that budget,” he said.
But he said now was not the time to continue the “blame game” but to accept the state of the national economy and work to “rescue” it.
“Our Government will initiate immediate cost cutting on projects and expenditures of no significance to the economy, invest in economic stimulant projects, and source lower cost loans in the immediate to refinance our debts as well as provide budget support,” he said.

Go to this link for more: https://www.thenational.com.pg/row-over-budget/

Send these primitives back home. But where is home? What is home?

By Nelson Himugu - via Facebook

TARI! TARI! TARI! KKK!

Many of us grew up in POM. We have friends, families, jobs, education in POM. Its been years now. We love this city we call home now. Yes we are from Hela but you people do not care that Tari is just one of the many districts and villages in the province. Tari just kamap big nem tasol lo bagarapim.

Home is where the heart is. But our heart bleeds everytime we think of home. Tribal fights, no law and order, poor education standards, poor health service coverage, poor road conditions and coverages, no fire station, no dependable electricity and water supply, no business opportunities, no employment opportunities, poor public service mechanism and the list goes on. How can our people strive in this kind of environment? Where the Government and the Developer playing divide and rule tactics to rob us of our natural resources wealth. A hostile, volatile environment. Will you? Put youselves in our shoes. We lost fathers, mothers, brothers, sisters, uncles, aunties, friends in the very place we call home. We have become refugees in our own country.

We as Papua New Guineans have all the right under the sun, in this beatiful country of ours to live our lives to the fullest, and to the best of our abilities as mentioned and enshrined in the constitution by our forefathers for our great nation. We have all the right to be here just as you, no matter the circumstance, job difference, employed or not, educated or not, men, women, children, black skinned, white skinned, soft hair, fuzzy, who gives a shit. At least theres clothes on our back, food on our table and a place to rest our heads. Money doesn't grow on trees. You must struggle.

"Send them home. Charter planes, hire buses, hire boats and ships, just kill them all." WOW, PNG vs PNG. Then fellow Papua New Guineans ask them also to provide an aid in billions of Kina to these provinces so they can build better schools, health systems, airports, roads, bridges, law and order, create jobs, business opportunities, everything a provincial town needs. Better incentives so that this people don't come. Because we, well off Papua New Guineans are bleaching and scrubing our skins white and do not care about other black poor people of this country.

Lives were lost, people were injured. Laws were broke. Life is precious. Law brings peace and order. Only God makes life and for us, just once. Its very precious to God, but to us?

Condolences to the family of deceased. To the injured, wish you a speedy recovery. Taris please respect others and keep the peace. Let the Law do its job.

God bless PNG.