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PNG LNG performing well: Botten

Staff Reporter | 4:16 AM | |
OIL Search Limited says it is generating a positive cash flow despite the fall in global oil prices.
Managing director Peter Botten told the Bernstein Roadshow in New York last week that this trend was underpinned by strong production from high quality, low cost, quality asserts and sustained capital requirements. He said the PNG LNG project which Oil Search had a 29 per cent stake in was performing well above expectation.
He said cash flow break-even inclusive of operating expenditure this year was forecast at US$19  (K59) barrel and about US$30 (K93) per barrel after principal repayments and sustaining capital expenditure.
Botten said Oil Search had a solid balance sheet with liquidity of about US$1.7 billion (K5.27 billion)
He said the company was making progress on two high potential LNG growth opportunities assessed to have taken breakeven cost in lowest quartile in the region
Botten said the expansion of PNG LNG, through production optimisation and bottlenecking of existing trains and potential third train development were ongoing.
 He told investors that the Papua LNG project was expected to be next major LNG development in PNG.
Botten said major near-field gas exploration campaign had been planned for this year and next year.
He noted that a number of initiatives had been implemented last year to recalibrate cost and prioritise capital spent.