PNG's Oil Search: PNG LNG Project Financing Signed

Oil Search Ltd. (OSH.AU) said Wednesday it has signed documents for US$14 billion in project financing for its PNG LNG project from various lenders.

The debt will be "more than sufficient" to meet the estimated US$13 billion of financing required for the project, on an agreed 70% gearing basis.

The financing has been led by US$8.3 billion of commitments from key export credit agencies, including U.S. Exim, JBIC and NEXI from Japan, China Exim, SACE from Italy and EFIC from Australia, Oil Search said in a statement.

The financing also includes US$1.95 billion of uncovered commitments from a syndicate of 17 commercial banks and US$3.75 billion of co-lending from ExxonMobil Corp.(XOM)--the operator of the PNG LNG project.

"Following formal commitments from lenders, all parties will now move expeditiously to clear the remaining conditions precedent to first drawdown, with financial close targeted by mid February 2010," Oil Search said.

-By Elisabeth Behrmann, Dow Jones Newswires;

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

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