Papua New Guinea has been exporting crude oil since the early 1990’s. Although production is modest and has relatively reduced overtime, it is one of the country’s major exports. In 2014, PNG launched the commercial operation of liquefied natural gas, boasting as the country’s top revenue-generating export product. The combined contribution of crude oil, LNG, and condensate will potentially comprise around 60% of the nation's export revenues in the near term.
Globally, the oil and gas industry faces the familiar cycle of boom to bust. Oil prices have declined significantly. Natural gas prices are following suit, with excess supply in the market. How low will prices go? How long will the price decline last? These are the burning questions of the day. But industry experts know that to provide products for the future, the planning and investment must continue today. Throughout the value chain, oil and gas projects take years to develop, and price fluctuations are all a part of the process. At PwC, our global oil and gas professionals understand the challenges that our clients face, along with the uncertainties and risks they have to manage, and we provide the help that companies need to succeed throughout the business cycle.
The energy industry requires long lead times for new projects, and even though the current global economy is struggling, the world’s population continues to grow. With this growth, energy demand will increase. Weighing the risks versus benefits of new projects, new products and how much capital to invest, oil and gas companies also have to consider regulatory, safety and environmental concerns. Balancing the need to supply the world with hydrocarbons, companies are also looking at investments in alternative energy sources, including unconventional sources, biofuels, renewable energy sources, and ways to improve energy efficiency.
How can PwC help?
At PwC, we are not only watching these local and international developments in the industry, but we are analysing these changes from the perspective of how they will impact our clients, and how we can best help them prepare for and manage these changes. We examine the issues, and build teams of subject matter specialists who develop appropriate solutions through our assurance, tax and advisory services.
We bring together a multi-disciplinary team that features local and international experience to help ensure your project is meeting key milestones, while containing costs and managing risk. We work across all areas of the business to:
- materialise your investment objectives
- provide certainty in your investment outcomes
- manage operational, financial, regulatory and fiscal risks
Our service offerings focus on adding value throughout the lifecycle of your project, while reducing complexity along the way.
