A Sustainable Future through collaboration: Oil Search meets Landowner Company Leaders

A Sustainable Future through collaboration: Oil Search meets Landowner Company Leaders

Media Release

1 May, 2019

There are more business opportunities to be gained from working together than competing against each other, and that such cooperation and pooling of resources could enable diversification, business growth and wealth creation.

This was one of the outcomes of a recent workshop between Oil Search senior management and sixteen directors and managers of landowner companies that provide services in licence areas where Oil Search operates.

"Local landowner companies are really important partners for Oil Search - they provide vital support services such as catering, labour hire, security service, building and civil construction whilst providing employment and other community support to hundreds of local people," Leon Buskens, Oil Search Stakeholder Engagement General Manager said following the workshop.

The gross value of contracts carried out by local landowner companies in the Hides, Kutubu, Moran, Gobe and Kikori areas is K150- 200 million aggregate a year, dependent on world oil prices and other business factors, and in the last 8 years has totalled almost K1.6 billion.

The workshop provided a colloborative avenue to discuss the performance of landowner companies, which Oil Search monitors based on the company's performance parameters relating to statutory and contract compliance.

Some landowner companies shared how they had diversified into areas and activities separate from the services they provide to Oil Search. Notable examples included TWL Data, an aerial imaging & data gathering service established by trucking & logistics company TransWonderland Limited and PNG Eden, an agricultural supplies subsidiary of catering provider, PNG Mining & Petroleum Hospitality Services Limited.

Workshop attendees were also addressed by noted business managers from outside the petroleum industry

-Ian Tarutia, CEO of NasFund, Michael Gotaha of Gahuku Traders and Godfrid Umba of KaiaWorks, who shared their experiences and gave inspiring talks about the factors that had influenced their success in business in the open competitive market.

Oil Search Limited

Incorporated in Papua New Guinea

ARBN 055 079 868

The participants acknowledged the importance of landowner companies to not only be compliant and perform contracts effectively, but also actively look for other business opportunities to grow.

It was emphasised and noted that elements of good governance that contributed to company success included minimisation of political or director interference with operations, application of sound business principles, director & staff appointment based on merit, good stakeholder relationships and ongoing investments and business diversification based on expert advice.

"Part of Oil Search's business strategy and value is not only to ensure that landowner companies operate profitably and ethically but also to see them grow and be sustainable," Mr Buskens said.

The workshop also provided an opportunity for landowner companies to collectively share some of their experiences, their shared challenges and opportunities of working in a remote environment. It also gave Oil Search an excellent opportunity to listen to landowner views. Landowner company leaders were also encouraged to look at innovative business approaches to mitigate some of their challenges including pooling together their resources to bid for business opportunities on the horizon.

Participants concluded that such an incentive and forum provided a good platform for local business leaders and the company to collaborate effectively on business challenges and opportunities in the years ahead.

End.

For further information, please contact:

Ruth Waram

Manager, PNG Communications

Mobile: [phone]

A Sustainable Future through collaboration: Oil Search meets Landowner Company Leaders - 1 May 2019

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Photos

Strength in partnership and collaboration:

Oil Search senior management met with directors and managers of landowner companies for a workshop in Goroka recently. Other attendees included Ian Tarutia, CEO of NasFund, Michael Gotaha of Gahuku Traders and Godfrid Umba of KaiaWorks.

Goroka:

Leon Buskens, Oil Search Stakeholder Engagement General Manager addressing directors and managers of landowner companies.

A Sustainable Future through collaboration: Oil Search meets Landowner Company Leaders - 1 May 2019

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