Angel Kokopo
PNG policy is harsh, but it's the right way forward

Oil Search encouraged by Gulf gas discovery

ROSS KELLY | Wall Street Journal

OIL SEARCH HAS DISCOVERED modest quantities of natural gas during a new exploration campaign in Papua New Guinea, and the find had encouraged it to continue drilling.

Oil Search began looking for gas in the Gulf of Papua this year as part of a campaign that may help it develop another gas-export plant in PNG.

The Australian company is already a major shareholder in the US$19 billion PNG liquefied natural gas export project led by Exxon Mobil Corp.

Oil Search said in a statement Tuesday that its Flinders and Hagana wells in the Gulf of Papua intersected good quality geological properties that may indicate the presence of larger resources nearby. Hagana is still drilling ahead to its target depth.

"Although the volumes at Flinders and Hagana are likely to be relatively modest, the company has been sufficiently encouraged to take up a further well option and will drill the Kidukidu prospect once Hagana-1 is completed," the company said.

Separately, Oil Search said oil and gas output in the three months to June 30 fell 9.7% from a year earlier to 1.63 million barrels of oil equivalent, but kept its annual guidance of between 6.2 million and 6.7 million barrels.

Revenue in the quarter fell 3% from a year earlier to US$204.9 million, the company said.

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)