Chairman optimistic about firm’s future

OIL Search Limited chairman Richard Lee (pictured) is optimistic about the company’s capacity to operate in 2017 considering the developments in the global energy market.
“Oil Search enters 2017 in a strong operational and financial position, with an unprecedented opportunity to continue to deliver substantial value for all stakeholders,” Lee said.
“While OPEC’s (Organisation of the Petroleum Exporting Countries) decision in late 2016 to cut production has led to an oil price recovery, with prices appearing to have stabilised in the US$50 (K160.2) to US$55 (K176.43) per barrel range, the board and management still believe it is
sensible to follow a ‘plan for the worst, hope for the best approach’, which has served us well in recent years.
“We will continue to focus on controlling our costs and maintaining our strong financial position.
“With total liquidity of nearly US$1.8 billion (K5.75 billion) at the end of March 2017 and strong cash flows from operations, Oil Search has ample capacity to fund all committed expenditures, including expenditures on our world class LNG growth opportunities in PNG, scheduled debt repayments and dividends, even if oil and gas prices remain constrained in the short-term.”