OIL Search, which has recorded a 117 per cent jump in first-half profit on a significant rise in the oil price, is confident about its $US15 billion ($14.2bn) Papua New Guinea project despite concerns the new government is set to overhaul land ownership.
Net profit for the six months to June 30 rose to $US114.5 million, largely driven by a 53 per cent rise in the realised oil prices.
Managing director Peter Botten said the company had realised an average price of $US116.89 a barrel, which helped lift revenue to $US371.1m from $US276.6m in the previous first half, despite a 10 per cent fall in oil and gas sales. Mr Botten also stressed the firm's $US15bn PNG gas export joint venture with ExxonMobil was on track to ship its first cargo in 2014 and that it was negotiating with the new government.
Peter O'Neill became PNG's Prime Minister earlier this month, replacing Michael Somare.
The Australian reported last week that the new PNG government was planning to hand ownership of the country's resources to landowners in a move that threatens billions of dollars worth of investments by Australian and global companies.
"There is unprecedented investment taking place there now in the resources sector and there has been a good history of constructive dialogue between industry and government to manage the development issues and the expectations of the landowners, and we anticipate that will continue with the new government," Mr Botten said.
He said there would continue to be a constructive dialogue with the government and that in the end "sense will prevail". "The positive is that a range of the senior ministers in the new government were around, and in critical parts of discussions on the project development, in the past government," he said.
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