05-11-2013, 03:58 AM
Since their partner TOT is gulf LNG bidder maybe gulf LNG is one project under consideration. Sure hope OSH and TOT hope and wish that png will attempt to operate justly within confines of oil and gas act and all other skeleton agreements since big bad RDS can screw all others out of prime leases and finds apparently.
**********
Oil Search seeks new projects around PNG
May 11, 2013 12:00AM
OIL Search is eyeing off a new liquefied natural gas project in the Gulf of Papua before its flagship Papua New Guinea project is finished.
While the company's main focus has been helping to deliver the $19 billion PNG LNG joint venture project, that project is now 80 per cent 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 Mobil-operated project in which it has a 29 per cent stake.
Chief executive Peter Botten talked up the company's exploration venture in the Gulf of Papua with France's Total and the prospects of establishing a stand-alone LNG project there.
"Development options include stand-alone 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 was committed to developing its options for growth beyond the foundation PNG LNG Project, chairman Richard Lee told shareholders at the company's annual general meeting.
The estimated costs of PNG LNG blew out to $US19bn last year, with Oil Search's share between now and first LNG sales being $US500 million.
Mr Lee said a key objective for the company was to capitalise on the asset base being built by PNG LNG by adding a third (and possibly fourth) LNG train used to liquefy that natural gas.
"An expansion of PNG LNG is regarded as the highest-value opportunity in our growth portfolio," he told shareholders.
"The discovery of a sizeable gas accumulation at P'nyang South in early 2012 has brought us a step closer to underpinning an expansion, with further material gas resource upside in the (PNG) Highlands being tested over the next 18 months by an extensive seismic and drilling program."
Fat Prophets, CIMB and Goldman Sachs have put buy ratings on Oil Search in recent weeks due to the increased earnings the highly rated PNG LNG project will present.