PNG's Oil Search: LNG Project Funding About US$4.8 Billion

Oil Search Ltd. (OSH.AU) said Tuesday its funding requirement for the Exxon Mobil Corp. (XOM) operated PNG LNG liquefied natural gas project in Papua New Guinea is expected to be about US$4.8 billion.

Oil Search also played down speculation that it will need to raise equity to fund its involvement in the project.

Negotiations with potential lenders to PNG LNG are at an "advanced stage," Oil Search said in a statement.

"...contrary to market speculation, there has been no indication from any of the lenders that cash is required to cover completion guarantees," Oil Search said.

"Oil Search is unrated and does not have any requirement or desire to dilute its shareholders by raising cash to effectively cover proposed debt," it said.

"In fact, it would be illogical for Oil Search to do this."

Oil Search said earlier Tuesday that it has a number of levers it can pull to manage its capital, including raising equity. Last week it said it would only raise equity as "a last resort".

By Ross Kelly, Dow Jones Newswires; 61-2-8235-2957; ross.kelly@dowjones.com

Oil Search (ASX:OSH)
Historical Stock Chart
From Jun 2024 to Jul 2024