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Oil Search spreads wings to protect shareholders’ investment

Staff Reporter | 9:54 PM | |
OIL Search Ltd has spread its investment throughout several projects and proposed projects in the country so the company does not risk its shareholders’ investments, general manager Michael Uiari says.
He said the company was considerate of shareholders such as the Government and tried to spread its investment as much as possible.
He was responding to a question as to whether the company had any plans so as to safeguard its shareholders’ investment in the company given that most of the company’s investment was in PNG.  
The question was whether the company had risk diversification to cater for things such as price fluctuations, and to guarantee the return and ensure investment for investors like the Government were secured.
Uiari said besides the US$19 billion (K52.7bn), PNG LNG project where Oil Search had 29 per cent, the company would part take in other upcoming gas projects in the country.
“We are trying to push down our cost of production and manage our business in a responsible way but at the same time we are chasing growth opportunities so we can create shareholder wealth along the way.
“That’s the way we are managing the environment that we operate in,” he said.
Uiari explained that towards end of last year when oil prices fell, the company’s response was to manage the business and to cut back spending in particular areas, so that the company continued to manage the business in a responsible way.
“But if you cut back completely and if you are not doing anything then you are not actually creating the economy and for the shareholders,” he said. The National/PMW