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Oil Search to focus on LNG growth project

Staff Reporter | 4:22 PM |
In response to the substantial fall in oil prices over the past six months, Oil Search has reprioritised its 2015 work programs to focus on the company’s high-returning core; the LNG growth projects.

From 2014 results released on Tuesday, the company stated that ongoing oil development drilling program have been designed to maximise oil recovery, production optimisation initiatives with focus on reliability, well integrity and process safety.

Oil Search says that PNG LNG Project and oil fields remain profitable at current oil prices and views PNG LNG as a potential to deliver incremental value, pointing out the company’s expected total production to be 26 – 28 mmboe, a good rise from 2014’s 19.3 mmboe.

The company says it will maintain safe and reliable production of oil and gas as its key priority for this year, continuing to deliver Kutubu and Gobe Main gas, as well as the operation of liquids exports system via Kumul Marine Terminal and Support operator in studying debottlenecking opportunities for PNG LNG. It stated North Western Hub (P’nyang field) and the Gulf Hub (Elk-Antelope fields) to be the two key resource hubs in which OSH holds strong position to supply its next phase of development.

Basing on Oil Search’s revised oil price expectations and cost assumptions, expansion and standalone opportunities both remain econo