Oil Search Expands from the Tropics to the Arctic: Broadens portfolio, builds Anchorage-based team.

AuthorSimonelli, Isaac Stone
PositionOIL & GAS

At first glance, it's hard to imagine why Papua New Guinea-based Oil Search decided to venture into the Arctic after almost ninety years in the tropics. Their acquired assets, which they took operator-ship of in March, include a 25.5 percent interest in the Pikka Unit and adjacent exploration acreage and a 37.5 percent interest in the Horseshoe Block. These leases contain the Nanushuk field, thought to be one of the largest onshore conventional oil discoveries made in the United States in the last three decades.

It could seem that oil and natural gas development in the jungles of the island nation of Papua New Guinea (PNG) are as far removed as possible from the North Slope. However Ann Diamant, general manager of investor relations and communications at Oil Search, points out that Oil Search's expertise operating in remote and challenging environments, combined with its ability to establish strong ties to local communities impacted by their work, has placed the company in a prime position to successfully operate the company's newly-acquired Alaska assets. Oil Search is also building a highly-experienced Alaska operational and technical team based in Anchorage.

"In PNG we operate in extremely remote areas requiring detailed planning, logistics, and a focus on community engagement. We have also operated safely and efficiently throughout the Middle East in a variety of environments," Diamant says. "Oil Search is focused on working closely with local communities and maximizing cooperation with other operators, and we see lots of opportunities to utilize these skills in Alaska."

Working in Nuiqsut

Oil Search is currently in discussions with local community entities in Nuiqsut closest to the company's areas of interest. To gain a better understanding of North Slope indigenous communities and to showcase its PNG activities, Oil Search brought four members of Arctic Slope Regional Corporation to PNG, providing a first-hand look at how the company works with local communities and what services it provides.

"The way that we work in PNG," Diamant says, "is that we want to do things that are mutually beneficial for both the company and local people. Most of our staff is recruited from local villages or the province--83 percent of our workforce in PNG is [comprised of] PNG nationals--and we are actively involved in local business development. In our operated oil assets, our core services--such as transport, catering, and security--are all provided by local companies that Oil Search has helped set up and/or mentored. We want to make sure that our oil and gas activities benefit all stakeholders and are making life better for people in PNG. And, of course, we have to work closely with local regulators."

As well as employment opportunities, Oil Search gives back to the country through a range of social programs, operated by the nonprofit Oil Search Foundation, which is dedicated to improving the lives of Papua New Guineans. Aside from the government, it is one of the largest providers of health and welfare programs for the country.

The wholly-owned, nonprofit foundation, which is primarily...

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