OIL SEARCH
COMPANY
UPDATE
MACQUARIE AUSTRALIA CONFERENCE - APRIL 2019
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OIL SEARCH COMPANY UPDATE - APRIL 2019 | PAGE 2
SIGNIFICANT PROGRESS MADE IN 2018/19 ON VALUE-ADDING INITIATIVES
❖Landmark Papua LNG Gas Agreement signed in April 2019:
-Commercial agreements close to completion
-P'nyang Gas Agreement expected to be finalised 2Q19, enabling downstream FEED to commence
❖Inaugural drilling campaign in Alaska successfully completed:
-Material upgrade in 2C oil resource expected
-Expect to enter FEED for first phase Pikka Unit development in 2H19
-Progressing opportunities to optimise development
-Work ongoing to maximise value of Armstrong Option through exercising and partial divestment, at appropriate time
❖Gas encountered at Muruk 2. Data indicates reservoir continuity from Muruk 1 ST3
❖Strong liquidity position of US$1.5bn at end March 2019 providing funds for growth project investment
OIL SEARCH COMPANY UPDATE - APRIL 2019 | PAGE 3
LANDMARK PAPUA LNG GAS
AGREEMENT SIGNED IN APRIL 2019
❖Significant step forward for Papua LNG Project, following Nov 2018 Memorandum of Understanding
❖Fair split of expected Project returns between State, Project participants and other stakeholders:
-5% Domestic Market Obligation
-New production levy
-Deferred mechanism for State's payment of past costs
-National Content plan to support local workforce development
❖Upstream FEED-related activities on Papua LNG have commenced
❖Commercial agreements governing integration of Papua LNG and PNG LNG nearing completion
❖P'nyang Gas Agreement expected to be finalised 2Q19, enabling downstream FEED entry in 2H19
OIL SEARCH COMPANY UPDATE - APRIL 2019 | PAGE 4
PROPOSED CONFIGURATION AT PNG LNG PLANT SITE
Condensate/ | ||
LNG Export | Naphtha | |
PNG LNG Onshore | Export | |
site boundary | ||
LNG LNG | LNG | LIQUIDS LIQUIDS |
Utilities, | ||||||||||||||||||||||||||||||||||||
power | 1 | 2 | 3 | 4 | 5 | |||||||||||||||||||||||||||||||
generation | Train | Train | Train | Train | Train | |||||||||||||||||||||||||||||||
New Utilities, | ||||||||||||||||||||||||||||||||||||
power | ||||||||||||||||||||||||||||||||||||
generation | Field Condensate | |||||||||||||||||||||||||||||||||||
Elk-Antelope | ||||||||||||||||||||||||||||||||||||
AGRU | AGRU | AGRU | Gas | |||||||||||||||||||||||||||||||||
Elk-Antelope | ||||||||||||||||||||||||||||||||||||
PNG LNG | Gas | Existing PNG LNG facilities | ||||||||||||||||||||||||||||||||||
P'nyang | Proposed new infrastructure | |||||||||||||||||||||||||||||||||||
Note: AGRU - Acid Gas Removal
Unit
New LNG capacity underpinned by gas resources from Elk/Antelope (PRL 15), PNG LNG Project and P'nyang (PRL 3) fields
OIL SEARCH COMPANY UPDATE - APRIL 2019 | PAGE 5
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Oil Search Limited published this content on 30 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 30 April 2019 00:07:12 UTC