Oil Search Limited (OSL) said substantial undeveloped amounts of gas have been identified in its existing portfolio to support at least two more LNG trains.
OSL managing director (MD) Peter Botten announced this and other outcomes of its 2014 strategic review, through a telephone conference, from Sydney yesterday.
Mr Boton highlighted that this revelation is expected to result in positive changes within the firm and it will also assist in driving the commercialisation of its assets and higher dividend returns to its share holders.
"I’m pleased that the strategic review has identified several high-returning growth opportunities in PNG, with enough gas in our existing portfolio to support at least two additional LNG trains which we are well positioned to pursue," Mr Boton said.
He said the strategic review has assisted the company to adopt a proportional dividend policy, which will be applied to the final payments of 2014 dividends in February next year.
"This ratio of dividend payout is somewhere around 35 to 50 per cent of core net profit after tax," he added.
The MD also stressed that over the past ten years of OSL’s existence, it had a consistent record of delivery top quartile returns to its shareholders.
"Even after the recent correction of all the energy prices, we anticipate that from our assets we have in PNG and their key outworking, we are able to continue delivery top-quarter over the next five to seven years," he said.
It was also mentioned that an organisational restructure in management level is currently underway, which will see several senior executives, operate from PNG instead of being abroad.
"These changes will assist the management in developing their experience and deepen their relationship with other employees in the country," Mr Botten added.
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