Oil Search pins hopes on Papua New Guinea LNG project

Mathew Murphy, Sydney Morning Herald

OIL SEARCH says a third processing train of liquefied natural gas at its $US15 billion ($16.7 billion) Papua New Guinea project could supply gas by as early as 2015, with a potential fourth train to follow shortly afterwards.
As he released Oil Search's annual results for last year, which showed a 59 per cent drop in profit compared with 2008, managing director Peter Botten said the PNG project would reach financial close during the next month. He was confident that a final off-take agreement with Taiwan's CPC would be completed during that time and that ''two remaining issues'' would be resolved.
The project, led by ExxonMobil, has attracted attention recently following the outbreak of violence between tribal groups that has left several people dead. Mr Botten said that despite an Oil Search employee being one of those killed in the violence, it had ''absolutely nothing to do with the PNG LNG project''.
The PNG gas project is expected to start exporting 6.6 million tonnes of gas annually from 2014. Mr Botten said that while he did not want to be tied to a firm date for additional trains, a third train could be ready by ''late 2015, early 2016''.
''That is obviously a targeted line for us,'' he said. ''There are a range of opportunities and synergies that come from PNG LNG if you are able to do another development within that time frame. Our technical and commercial view is that there is enough gas to not only underwrite just train three but a train four.''
Oil Search has about 500 million barrels of oil equivalent (boe) committed to the PNG project, of which 300 million boe is sold and fully contracted. Mr Botten said there was a further 280 million boe that was uncommitted in discovered fields that Oil Search has an interest in. ''We do believe there are further resources and reserves to find.''
His comments came as Oil Search announced a profit of $US99.6 million for last year, down from $US240 million in 2008, due to a 35 per cent fall in the average realised oil price and a 7 per cent drop in sales. Total oil production reached 8.1 million boe, 5 per cent lower than 2008.
The company retained its guidance for 2010 production to be between 7.2 million boe and 7.4 million boe. Investors will enjoy a final dividend of US2c (2.2c) a share, compared with US4c in 2008.
Credit Suisse analysts said higher realised crude oil prices so far this year could provide some upside for Oil Search but that ultimately the delivery of the PNG gas project would be the main driver for the stock.

Comments

Post a Comment

Please free to leave comments.

Popular posts from this blog

PNG, VERY RICH YET STILL A VERY VERY POOR COUNTRY

Image
by GARY MONDULAME Papua New Guinea (PNG), a nation blessed with abundant natural resources, continues to grapple with economic challenges that belie its potential wealth. The nation's economic narrative is a paradox—rich in resources yet burdened by poverty. The explanation for this paradox lies not only in economic mismanagement but also in deep-seated corruption that has permeated the political landscape since independence in 1975. Following its independence from Australia, PNG was entrusted to leaders who lacked a vision for a holistic national development. This absence of foresight is evident from the lack of long-term development plans that could have distributed the country’s wealth fairly across all regions and communities. Successive governments failed to establish foundational strategies such as building satellite townships or creating robust rural housing schemes. Instead, they resorted to short-term, reactive measures that did not foster sustainable growth. The nascent l
Read more

BLIND LEADING THE BLIND, WHY THE PNG ECONOMY STILL SUCKS

Image
Elizabeth Genia, Acting Governor Bank of PNG (BPNG) by MICHAEL JOSEPH PASSINGAN The economy of Papua New Guinea (PNG) is at a crucial juncture. Despite some signs of recovery, the country faces several structural challenges that continue to impede its economic progress. The March 2024 Monetary Policy Statement from the Bank of Papua New Guinea sheds light on these issues, providing a comprehensive overview of the economic landscape and the policy responses being implemented to navigate through these turbulent times. In 2023, PNG's economy grew by a modest 1.4%, a significant slowdown from the 5.2% growth witnessed in 2022. This tepid growth is largely attributed to delays in major projects and ongoing economic issues that have not been fully resolved. The anticipated growth for 2024 is around 3.0%, buoyed by the resumption of production at the Porgera gold mine. While this marks an improvement, it remains subdued compared to the potential of this resource-rich nation. One of the mo
Read more

HIGHLANDS FRAUD F*CKS RUNNING GOVERNMENT AGENCY,,,

Image
A Fraudster and unqualified person has been shortlisted for NEC submission for the position of CEPA Managing Director. The candidate in question is Jude Tukulyia. His academic credentials are subject to scrutiny. Further investigation is required to verify the authenticity and legitimacy of his qualifications, particularly the reported diploma in accounting, Bachelor of Laws, MBA from Divine Word and UPNG respectively. It is very suspicious and unprofessional  when the Minister for Environment Conservation and Climate Change, Hon Simo Kilepa, wrote to UPNG Vice Chancellor asking to confirm Jude’s questioned education qualifications. This very due diligence work is the core responsibility of the Public Service Commission and Department of Personnel Management. What authority does the portfolio minister have to write to the Universities? Dumbfounding indeed if one asks. Ulterior motives written all over the letter. This amounts to  Questionable Academic Qualifications of Mr Tukulyia.    
Read more

AUGUSTINE MANO PNG'S PREMIER CORPORATE CROOK

Image
by  MICHAEL J. PASSINGAN In a significant setback for Mineral Resources Development Corporation (MRDC), the Supreme Court of Papua New Guinea has dismissed the company's appeal to stop criminal investigations into its dealings with landowner funds held in the Pacific Balance Fund (PBF). The court ruled that MRDC's appeal was an "abuse of process" and ordered the company to pay costs of the proceedings. MRDC, a unit holder in PBF, had taken legal action against the National Court's decision to dismiss its case, arguing that the court had no jurisdiction to hear the matter. However, the Supreme Court disagreed and held that MRDC's appeal was nothing more than an attempt to interfere with the police's criminal investigative process. The court found that MRDC had no authority to conducted its own investigation into the activities of the Melanesian Trustee Services Limited (MTSL), the fund manager of PBF, and that its actions were in violation of the Trust Deed
Read more

James Marape's Missteps Openly Exposed at Australian Forum

Image
by  MICHAEL J. PASSINGAN  In a recent event that highlighted the complexities of international diplomacy and governance, Papua New Guinea's Prime Minister, James Marape, faced a challenging situation during his appearance at the Lowy Institute in Sydney, Australia. The Lowy Institute, known for its role as an independent think tank focusing on international policy, particularly in the Asia-Pacific region, provided a platform for a candid assessment of Marape's governance. Following his formal address, Marape engaged in a dialogue with Dr. Michael Fullilove AM, the Executive Director of the Institute. Dr. Fullilove, a respected figure in public and international policy, scrutinized Marape's past promises and statements, contrasting them with the current state of affairs in Papua New Guinea (PNG). The discussion took a critical turn as Dr. Fullilove revisited Marape's 2019 speech at the same venue, where Marape had outlined his vision for PNG in a speech titled “A New Boo
Read more

PNG GOVERNMENT MINISTER IN PORN VIDEO

Image
WEWAK MP AND CORRECTIONAL SERVICE MINISTER JIM SIMATAB ANOTHER PUPPET WHO NEEDS TO BE VOTED OUT Wewak Open Electorate and the people of East Sepik Province are suffering from lack of development and delivery of basic services. Meanwhile, their MP, Jim Simatab, who is also Correctional Services Minister seems to be very busy having extra marital affairs with young Tolai girls who are young enough to be his child or grandchild. He is a typical puppet in the coalition of the corrupt who needs to be voted out in 2017. WARNING NUDITY AND SEX SCENE VIDEO LINK
Read more

PNC CANDIDATE & FORMER NHC CEO FILMED WIFE HAVING SEX WITH COUSIN IN NHC CEO'S OFFICE

Image
PNC Party has been rocked again this week after a video has surfaced online which involves the wife of the former National Housing Corporation CEO and now PNC candidate for Sinasina Yongomugl, JOHN DEGE , who is having sex on camera in the office of the National Housing Corporation CEO's with another man being filmed by the former NHC CEO himself. The sex scene took place inside the Office of the Managing Director and furnitures that are in the office are correctly identified. The voice of the man behind the camera is John Dege himself directing his wife MARIAH SUCKLING DEGE how to go about with the man who has been identified as her cousin. The PNC Party list of sexual infidelities and perverted mentality includes the Deputy Prime Minister and East New Britain Regional Member, Leo Dion , who  has a formal police complaint laid against him on allegations of incest, abuse of trust and persistent sex. The complaint was formally laid against him with the Sexual Offence Squa
Read more