Oil Search has repaid K1 billion (US$314 million) of PNG LNG project financial debt, with net debt at the end of 2017 of K8.4 billion (US$2.61 bn), compared to K9.9 billion (US$3.08 bn) at the beginning of the year.This includes K 2.7 billion (US$850 million) of undrawn corporate credit facilities, Oil Search had total liquidity of nearly K6.1billion (US$1.9 bn) at the end of 2017.
Managing director, Peter Botten said the results of engineering studies on the various integrated downstream development options for processing gas from the Elk-Antelope fields in PRL 15 and P’nyang in PRL 3 were provided to the joint venture participants in December.
He said discussions between Oil Search, Total and ExxonMobil progressed on project financing and marketing arrangements, with key project definition expected in early 2018, prior to presenting a preferred development option to the Government.
Mr Botten said the P’nyang south 2 ST1 encountered good-quality, gas-bearing Toro and Digimu sands, confirming the presence of gas in the south-eastern part of the field.
“Recertification of the field’s gas resources will be completed in the second quarter of 2018 and is expected to result in the addition of 1C contingent resources that can be used to underpin marketing and financing discussions for LNG expansion,” he said.
Site preparation for the Muruk 2 appraisal well continued during the quarter and, subject to weather conditions, drilling is expected to start in the second quarter of 2018. Muruk 2 will help define the potential volumes in the field.”
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