A NEW Oil Search Ltd subsidiary and company is moving quickly to develop new domestic energy options around the country.

Oil Search has created a subsidiary company, Oil Search Power Holdings Ltd – with a dedicated management team and industry specific management systems- to look after its growing PNG power business.

One of the new power projects the company is looking to deliver is the Markham Valley Biomass Project, which entered Front End Engineering and Design (FEED) in the third quarter of 2016.

An Early Contractor Involvement contract has already been awarded for the preparation of an EPC package for the biomass power station.

Oil Search has also progressed work in conjunction with PNG Power Limited (PPL), which has seen, a hook-up trial completed in Tari which allowed collection of data related to the cost of household connections. The successful trial demonstrated increased service levels and improved marketing and customer installation times.

Oil Search has also signed a Study Agreement with PNG’s National oil company Kumul Petroleum Holdings Limited (KPHL) under which the two companies will collaborate on a range of potential PNG power projects, including domestic LNG. The domestic LNG concept involves accessing LNG from existing and potential expansion plants or gas for LNG from local sources, for sale to domestic and regional markets.”