Energy
From The Report: Papua New Guinea 2016
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Much of Papua New Guinea’s economic success over the past decade, along with its prospects for future growth going forward, can be tied directly to the energy sector. The efficient construction and operational launch of the country’s first liquefied natural gas (LNG) programme the $19bn PNG LNG project not only secured unprecedented foreign direct investment (FDI) into the country and provided a stable revenue stream for years to come, but also delivered evidence that large, capital-intensive projects could be delivered effectively. With this proof of concept now established though the partnership of large international oil companies and the government of PNG, the door is open for further large-scale hydrocarbons recovery projects across the country.

This chapter contains interviews with Peter Botten, CEO, Oil Search; Raka Taviri, CEO, Water PNG; and Tony Honey, Managing Director, PNG Forest Products.

Articles from this Chapter

Overview

In the pipeline: Ongoing project developments should provide a boost for the sector in the coming years
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Much of Papua New Guinea’s economic success over the past decade, along with its prospects for future growth going forward, can be tied directly to the energy sector. The efficient construction and operational launch of the country’s first liquefied natural gas (LNG) programme – the ExxonMobil-driven PNG LNG project – not only secured unprecedented foreign direct investment (FDI) into the country and provided a stable revenue stream for years to come, but also delivered evidence that…

Interview

Benefits of cooperation: OBG talks to Peter Botten, CEO, Oil Search
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Interview:Peter Botten Oil prices have been hovering around $50 a barrel for the last year. Is this a price that operators should get used to in the long run? PETER BOTTEN: Unfortunately an unexpected outcome can always destabilise markets, and one of the biggest at the moment relates to the UK exit from the EU and how is it going to affect the global economy in the short to medium run. We are talking about the world’s fifth-largest economy taking a leap into the unknown, with major repercussions…

Analysis

On the horizon: Investors mull a second massive natural gas project
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With the afterglow of the successful implementation of Papua New Guinea’s first major liquefied natural gas (LNG) project now fading, attention has now being turned increasingly towards the next large pipeline project, Papua LNG. The most likely candidates are the Elk-Antelope fields within petroleum retention licence (PRL) 15 located in Gulf Province. Billed as the largest untapped gas fields in the country, oil and gas outfit InterOil estimates the initial Elk-Antelope fields that will…

Interview

Go with the flow: OBG talks to Raka Taviri, CEO, Water PNG
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Interview:Raka Taviri Where does Papua New Guinea stands in terms of water reticulation, and to what extent is this affecting socio-economic growth? RAKA TAVIRI: The government wants to achieve coverage of 100% of provincial towns and 85% of all districttowns as part of PNG Vision 2050. This is a bold goal, as currently the total urban population that we serve with our organisation is around 300,000, which is less than 6% of the country’s population. That figure does not include the…

Interview

Hydro potential: OBG talks to Tony Honey, Managing Director, PNG Forest Products
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Interview:Tony Honey Considering the country’s abundance of river systems, how can the Papua New Guinea energy sector tap into its potential for hydropower? TONY HONEY: What the industry needs at the moment is a more comprehensive approach when it comes to preliminary studies to assess the country’s hydro-power potential. Of course PNG is endowed with plenty of river systems, but not every one of them is suitable for hydropower. Unfortunately, preliminary studies are too expensive at…

Analysis

Let there be light: Power generation projects are in the works to meet the country’s development goals
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Numerous opportunities in Papua New Guinea’s power sector, both in the public and private sector, hold substantial potential for companies willing to supply new generation capacity to a country still undersupplied in 2016. Currently, PNG operates around 580 MW of nameplate power capacity, serving only a small fraction of the population within three isolated grids. With limited capacity expansion over the past decade, compared to impressive economic growth over the same time period, this…

Analysis

Downstream turbulence: The refining and retail segments have undergone significant changes
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Although much of the focus of the energy sector remains on the upstream segment and its investments, Papua New Guinea’s downstream segment has been making waves over the past few years. Both the refining and retail segments have undergone significant changes as members of the old guard have bowed out and new, dynamic players have jumped into the market with high ambitions. Until very recently, Singapore-based but PNG-focused oil and gas company InterOil controlled a dominating share of…