OSH 0.00% $4.04 oil search limited

when will it do a lazarus?

  1. 1,035 Posts.
    With PNG Govt. flagging an overhaul of mining taxes to revive investor interest in the sector & Somare saying that the Govt. will eventually sell- will this latest news be enough to get some action under the share price?
    PNG breathes life into gas pipeline project
    Tony Grant-Taylor
    THE so-called "mythical" Papua New Guinea to Queensland pipeline project may not be dead and buried yet.
    The PNG Government believes Exxon Mobil can sign up enough customers in the next couple of weeks to continue work on the planned $3.5 billion project.
    PNG Petroleum and Energy Minister Moi Avei said yesterday the pipeline had customers for half the natural gas it needed and expected to sign buyers for the rest by December 19.
    Exxon, the project's operator, has agreements with Australian Gas Light Co and CS Energy.
    But it needs to start initial engineering design work by the end of the year in order to start supplying AGL in 2006.
    Such work is only likely to be underatken, however, if Exxon can line up one or two extra large customers.
    "Right now we have 50 per cent of the customers signed up and I've been reassured the balance of them will be signed up before December 19," Mr Avei said at a media briefing after addressing the seventh Papua New Guinea Petroleum and Mining Investment Conference in Sydney yesterday.
    The Papua New Guinea Government had honoured all the commitments it made in the gas agreement on the project and was "ready to go", Mr Avei said. "We are simply waiting for the investors to make their commercial decision for a project go-ahead," he said. "December 19 is the crucial date for us."
    It has been suggested that without significant new commitments from customers by that date Exxon would abandon the project, in the sense that it (and its partners) would not commit to the necessary design work that would give the project a chance of delivering gas to AGL's timetable.
    Exxon owns 38.9 per cent of the project, ChevronTexaco Corp 9.7 per cent, Japan (PNG) Petroleum 3.4 per cent, and the MRDC, which represents PNG landowners, 3 per cent.
    Shares in Oil Search, the other partner, with 45 per cent, rose 3¢ to 69¢ yesterday.
    – with Bloomberg

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