PNG's Oil Search On Track For LNG Final Investment Decision

Oil Search Ltd. (OSH.AU) said Tuesday a final investment decision for the PNG LNG project in Papua New Guinea is on track for Dec. 8, and financial close for February next year.

PNG-based Oil Search holds a 30% interest in PNG LNG, which has an initial cost estimate of US$15 billion, with an expandable plant capacity of 6.6 million metric tons per year. The company's share is pegged at US$5.3 billion between 2008-2015.

The project will be operated by ExxonMobil Corp. (XOM), on behalf of joint venture partners Oil Search, Santos Ltd. (STO.AU), Nippon Oil Corp. (5001.TO), Mineral Resources Development Co. and Eda Oil, and is planning first LNG sales in late 2013-2014.

Finalization of sales and purchase agreements are ongoing, Oil Search said, with heads of agreements already forged with buyers in Japan, Taiwan and China.

-By Elisabeth Behrmann, Dow Jones Newswires;

61-2-8272-4689 elisabeth.behrmann@dowjones.com

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