Oil Search Ltd. (OSH.AU) Chief Executive Peter Botten said Tuesday that a revised cost for the ExxonMobil Corp.-led (XOM) PNG LNG project should be released next month.

"The (engineering) bids are progressively rolling in through this month and we anticipate a revision to capital costs some time in mid October," Botten told reporters on the sidelines of a conference in Perth.

Botten said the trend so far suggests overall costs may decline on earlier estimates.

The last estimate for the project, which is due for a final investment decision by the end of 2009, was US$10 billion-US$11 billion two years ago, equivalent to roughly US$12.5 billion in current terms, he said.

Botten expects a deal, unveiled last month, to sell a 3.5% stake in PNG LNG to Abu Dhabi-based International Petroleum Investment Co. will be finalized by the end of this month.

The sale may be subject to preemptive rights, he said.

"For sale of license interests, some parties do have preemption," he said.

-By Stephen Bell, contributing to Dow Jones Newswires; 61-8-9244-4243; sgbell@bigpond.com
Oil Search (ASX:OSH)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Oil Search Charts.
Oil Search (ASX:OSH)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Oil Search Charts.