Positive outlook for PNG Oil and Gas industry, says Kua

 Papua New Guinea PETROLEUM Minister Kerenga Kua says the outlook for the industry is positive with global oil prices still high.

It is currently more than US$60 (K207.63) a barrel, Kua said.

“The outlook for the industry is still good and positive and the industry is still in very strong shape,” he told The National yesterday.

He said the Covid-19 pandemic was still a threat to the industry.

But in terms of the PNG LNG project, operator ExxonMobil PNG Ltd adopted a professional approach to deal with the issue.

Globally, US oil prices are down 42 cents (K1.47), or 0.7 per cent, at US$62.71 (K219.89) a barrel, having gained 6.4 per cent last week as a result of the resurgence of the Covid-19 cases globally and as countries impose stronger measures that will hit economic activity.

PNG LNG project partner Oil Search Ltd recently said the surge in the Covid-19 cases in PNG had not affected its production and operations.

“To date, there has been no impact to production in our Oil Search operations in PNG as a result of the recent surge in the Covid-19 cases,” Kua said.

“The increase in confirmed Covid-19 cases in PNG has prompted Oil Search to enact its crisis and emergency management plans.

“The health and safety of our employees remains the highest priority and teams have been assembled in PNG and Sydney to deploy additional support to protect our people and to ensure the safety and reliability of our operations.

“At our PNG field locations, we continue to operate under precautionary protocols established in 2020, which includes redeployment of non-essential personnel, restriction of access and travel to field locations and implementation of strict preventative measures and quarantine zones.”

The National / Pacific Mining Watch

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