Oil Search Assessing Bids For PNG Assets

Oil Search Ltd. (OSH.AU) said Tuesday it's assessing bids received from parties wanting to invest in its untested Gulf of Papua assets in Papua New Guinea, as it reported a 22% rise in first-quarter revenue.

"Discussions with potential partners were ongoing during the quarter and a number of bids to farm-in to these licences were received late in the reporting period," Oil Search said in a statement.

The company is reviewing the offers and said a sell-down of its interests in the assets is likely around mid-year.

Revenue for the three months to March 31 rose to US$187.2 million from US$153.3 million a year earlier, as higher oil prices offset a fall in production to 1.46 million barrels of oil equivalent from 1.79 million BOE.

Oil Search said output was impacted by a previously foreshadowed 16-day facilities shutdown related to work on the US$15.7 million PNG LNG project.

ExxonMobil Corp.(XOM) operates the large gas-export joint venture with Oil Search and Santos Ltd. (STO.AU) that's aiming to produce its first liquefied natural gas in 2014.

Oil Search confirmed its recent large P'nyang discovery provides a potential "key underpinning volume" for a possible expansion of the project.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; Ross.Kelly@dowjones.com

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