Paper short abstract:

In 2016, Oil Search took over the running of the entire provincial health system of Hela Province, home to the giant PNG LNG project. While the locals welcome and support this move, it has done nothing to quell their discontent over the development failings of the PNG LNG project, for which they continue to blame the state.

Paper long abstract:

In April 2016, the health system of Papua New Guinea’s Hela Province was taken over by Oil Search Pty Ltd, installing the Oil Search General Manager, Peter Botton, as chair of the Tari hospital board. This transition made blatant the reality of state absence in the province, and underlined the inability and unwillingness of the state to run its own affairs, even in one of the most resource-rich parts of the country. In one respect, Oil Search’s move can be read as being designed to ensure its social licence to operate in its field of oil and gas extraction. Oil Search’s involvement, however, would not be possible without the express support of the local community and local leaders, who provide their support with enthusiasm and the thorough embrace of Oil Search’s role. Yet simultaneously, these local leaders, along with the entire community, are scathing in their criticism of the development failings of the PNG LNG project that is the creation of Oil Search and its project partner, ExxonMobil. Oil Search’s role in developing Hela’s health system has not prevented continuing threats to the existence of the PNG LNG project, while blame for its development failings continue to be directed towards the state. The perception of Oil Search as benevolent state actor only serves to highlight the neglectful role played by the actual state, and its role in exploiting the people of Hela for their gas reserves.