OSL seeks outlets for extra cash from LNG

Business, Normal

The National, Monday 13th May 2013

 THE PNG LNG project is a transformational enterprise to both Oil Search and Papua New Guinea, managing director Peter Botten says.

He also said the company had to work out what to do with extra revenue from gas sales starting next eyar.

During the company’s annual meeting in Port Moresby last Friday, Botten said: “Oil Search has spent approximately US$1.8 billion on development, appraisal, exploration and operations in PNG and is expected to spend similar amount this year.”

While the company’s main focus has been to help deliver the US$19 billion LNG project it is a joint venture partner in, that project is now 80% complete.

If gas sales start next year as scheduled, Oil Search will have to work out what to do with the extra cash it reaps when its production quadruples from the Exxon-Mobile-operated project in which it has a 29% stake.

Botten discussed the company’s exploration venture in the Gulf of Papua with France’s Total and the prospects of establishing a standalone LNG project there.

“Development options include standalone LNG, floating LNG or integration with existing infrastructure,’’ he said.

The company is also looking at oil-producing opportunities in PNG and new gas to continue supporting PNG LNG.

Oil Search chairman Richard Lee said: “With the vast majority of our current operations and future growth prospects located in PNG, having a stable economic, political and fiscal environment in which to operate is paramount to our continued success.”