Posted By Staff Reporter
OIL Search Limited shares have reached an unprecedented record high, trading at
$9.30 as of Saturday morning, bringing in a windfall gain of more than K900
million in just three months.
Prime Minister Hon. Peter O’Neill
said the share price may even go higher in the next few months, bringing
enormous benefits in terms of credit ratings, financial standing and credibility
"We have been holding these shares for a very long
time, it has been a speculative investment before, what was different then and
what is the difference now, the only good thing about this is that the value has
gone up, it is a much better value, in less than three months, our windfall is
around K800 going K900 million."
The government early this year
borrowed K3 billion from the United Bank of Switzerland (UBS)to purchase a 10.01
per cent in Oil Search that has come under the radar by
"It is generally clear to everyone that these are very
valuable shares and the government was right in making sure of that,” Prime
Minister Hon. Peter O’Neill said.
"We have been a long term
shareholder of OSL and we have waited long enough, and it would have been very
unfortunate if we have to allow the upside being received by someone else, when
we have held it when it was on the lower side and when we have held it for so
"So it will be really unfair if we did not participate in the
upside. And the upside of that is that because of the investments that Oil
Search have made, the value is starting to go up and the market is reacting to
"I think the shares are likely to reach $12 within the next
year or so and that is a very good indication for our country. We bought it at
$8.20 at a very substantially discounted price and all the gain of that pricing
goes to the nation."
Prime Minister Hon. Peter O’Neill said the
benefits are not only monetary in terms of money coming into the country, but
the investment increases the value of net assets and investments by the country.
He said the immediate value from such investment is financial credibility,
standing and lifts the value of assets and the economy. "This kind of value will
also give confidence to investors who want to come into the country, they know
that they can come to PNG and make a decent return on their investments, so they
are attracted to come here. It just adds credibility," the Prime Minister said. PNG Facts/Post Courier
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