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‘Oil, gas sector has huge potential’

Staff Reporter | 4:24 PM |
THE PNG Chamber of mines and Petroleum conference for 2015 has seen quite a good number of delegates from different companies turn up at day two of the event yesterday.

Sessions covered on the second day has given delegates a fair understanding of what has been happening in the production and development of other proposed petroleum developments, oil production and petroleum exploration, mineral exploration including social issues and community developments within the industry.

Executive vice president- PNG Business Operations for InterOil Thomas Nador, while chairing session six of the conference, stated that oil production and petroleum exploration has huge potential.

He said: "However petroleum exploration is one of the new activities, as you will notice, happening in PNG.

"Ever since the discovery of the gas bench and oil seeps in the Goilala area in 1911, this country was in exploration since then." Mr Nador explained that Oil search was operating in Papua in 1939 and has been active in PNG since then in the growth of the petroleum industry.

"Almost a hundred petroleum explorations, hundreds of exploration wells, and decades of production have demonstrated that Papua New Guinea is indeed blessed in oil and gas, perhaps not as easily as other parts of the world, through these significant resources that still holds a position in the exports.

"Adding to that the commercial export of oil and gas, oil by seep in 1992 and analysed by ExxonMobil in 2014 has provided PNG with employment potential," Mr Nador said.

He further stated that PNG is recognised as being an oil and gas producer but as all of us are aware, petroleum and its exploration in a world of smaller scale, PNG is the crafts maker.

"Oil and gas industry continues to explore a new global pricing environment, discretion in the spending costs and few exploration activity dominates the field, but at the same time provides the industry with the time and the right network to see what’s best in the outstanding issues so that there is a drop in the cost of production for each sector.

Mr Nador said each part of this country has the opportunity in discovery put forward to identify and commercialise resources.