First agreed upon in January, the concept of the alliance developed out of Halliburton’s long participation in Papua New Guinea as a traditional oilfield service provider through its Energy Services Group (ESG). It now encompasses Halliburton’s engineering and construction division (KBR) in a much closer relationship with Oil Search.

Oil Search managing director Peter Botten, said the companies fit perfectly together. “The relationship that we have developed with Halliburton and KBR is very important in providing Oil Search with world class technical, engineering and field operations support in a cost-effective partnership that we trust will provide a model for small but regionally significant operators.”

“It allows us access to a wide range of skills that we find impossible to justify in our permanent staff. Halliburton and KBR have provided excellent services that have facilitated the increase in operating roles that we now have in Papua New Guinea and in our growing asset base in the Middle East,” said Botten.

Halliburton Regional Vice President for Asia Pacific, Chas Charles, echoed the enthusiasm. “Building on a successful business relationship spanning over a number of years, the Oil Search, Halliburton and KBR alliance recognises the mutual benefits we can achieve by forming a strategic working relationship to develop and grow a combined interest in oil and gas production n PNG and internationally,” Charles said.

Oil Search currently owns approximately 70% of Papua New Guinea’s oil reserves and over 50% of gas reserves dedicated for the Highlands Gas Project.

In October 2003, Oil Search took over as operator of the country’s producing oil fields from ChevronTexaco and now operates all Papua New Guinea’s oil and gas fields.