Oil Search Says Second PNG Greenfield Project May Not Proceed
- Profit plunges 89% after lower commodity prices cut revenue
- Managing Director Peter Botten says oil has likely bottomed
Oil Search 1H Profit Drops 89% on Energy Slump
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Oil Search Ltd. said development of a second standalone liquefied natural gas export terminal in Papua New Guinea is unlikely with Exxon Mobil Corp. and Total SA expected to favor cooperation to expand the existing PNG LNG project.
The Sydney-based company owns 29 percent of the Exxon Mobil-led PNG LNG project and a 22.8 percent stake in the Papua LNG development operated by Total and co-owned by explorer InterOil Corp. Exxon Mobil, after prevailing over Oil Search in the $2.5 billion battle for control of InterOil Corp. in July, said it will funnel gas from the Papua project into an expansion of PNG LNG.