Page 38 - Oil&Gas-AustralAsia-2015-Issue-4
P. 38
P NG
Oil Search rejects offer ByMarieRYAN
The Board of Oil Search Limited position in the world class PNG LNG Together with its operators, ExxonMo-
advised in mid-September that it Project and in attractive, low cost, LNG bil and Total, and other joint venture
has unanimously decided to reject growth opportunities. These include partners, Oil Search said it had access
Woodside’s non-binding conditional the expansion of the PNG LNG Project to competitively priced project finance
indicative US$6 billion proposal to through debottlenecking, the con- for its LNG developments and substan-
acquire Oil Search. struction of a third LNG train and the tial corporate debt capacity and is well
Oil Search said in a statement that fol- development of the proposed Papua placed to fund the development of its
lowing a detailed evaluation of the pro- LNG Project. growth projects.
posal, the board concluded Woodside’s “Combined with Oil Search’s low cost Commenting on the proposal, the
offer was highly opportunistic and oil production and an extensive and Company’s Chairman, Mr Rick Lee said
grossly undervalued the company. high quality exploration portfolio, the board of Oil Search believes our
The company said since receiving the provides substantial scope for capital Company is in a very strong position,
official proposal Oil Search had under- growth, with the potential for produc- both operationally and financially.
taken substantial shareholder engage- tion to double from current levels by “We have a low cost, high quality,
ment and reported the overwhelming the early 2020s. In addition, with expo- production base which is generating
feedback was that the proposal had little sure to oil prices, through both its oil strong cash flows and excellent growth
merit. sales and LNG contracts, the company opportunities, with the proposed PNG
“Oil Search is a pure PNG oil and gas is in a strong position to capitalise from LNG Train 3 and Papua LNG among
play with clear growth opportunities a recovery in the oil price,” the company the most competitive new develop-
and an excellent track record of deliv- said. ments in the world. Oil Search provides
ery. The Proposal would significantly “Oil Search is in a very robust financial its shareholders with a pure exposure
alter the fundamental characteristic of position, with strong operating cash to PNG and is fully committed to PNG.
an investment in the Company and di- flows from its producing assets, even Our focus is on continuing to build
lute the present growth profile available at current low oil prices, and current and create shareholder value through
to its shareholders,” the statement said. liquidity of US$1.6 billion, comprising the Company’s strong future growth
Oil Search said it had a material equity US$850 million in cash and US$750 prospects,” Mr Lee said.§
million in undrawn corporate credit
facilities.”
NPCP’s Kumul Petroleum Academy
join forces with SPEI in Workforce
Nationalisation Initiative
The National Petroleum Company PNG The conglomerate includes Orion A state-of-the-art process plant training
(NPCP) is taking an interest, through Group, an innovative global personnel facility is to be built in Port Moresby to
sponsoring the development of a live and human resources company and Site cater for the rapidly growing regional
plant training environment with the Group International (SGI) as a global resources, power and energy sectors
South Pacific Employment Institute expert in the development of competent including but not limited to upstream,
(SPEI) in PNG; a conglomerate formed workforces, associated technology and midstream and downstream oil and gas
as part of a Public Private Partnership immersive training and NPCP (Kumul sector as well as catering for other pro-
to train the nation for the expanding Petroleum). cess oriented industries and associated
PNG Oil and Gas and resources market. technical training.§
A A32 OIL & GAS ustral SIA SEPTEMBER/OCTOBER 2015 www.oilandgasaustralasia.com
Oil Search rejects offer ByMarieRYAN
The Board of Oil Search Limited position in the world class PNG LNG Together with its operators, ExxonMo-
advised in mid-September that it Project and in attractive, low cost, LNG bil and Total, and other joint venture
has unanimously decided to reject growth opportunities. These include partners, Oil Search said it had access
Woodside’s non-binding conditional the expansion of the PNG LNG Project to competitively priced project finance
indicative US$6 billion proposal to through debottlenecking, the con- for its LNG developments and substan-
acquire Oil Search. struction of a third LNG train and the tial corporate debt capacity and is well
Oil Search said in a statement that fol- development of the proposed Papua placed to fund the development of its
lowing a detailed evaluation of the pro- LNG Project. growth projects.
posal, the board concluded Woodside’s “Combined with Oil Search’s low cost Commenting on the proposal, the
offer was highly opportunistic and oil production and an extensive and Company’s Chairman, Mr Rick Lee said
grossly undervalued the company. high quality exploration portfolio, the board of Oil Search believes our
The company said since receiving the provides substantial scope for capital Company is in a very strong position,
official proposal Oil Search had under- growth, with the potential for produc- both operationally and financially.
taken substantial shareholder engage- tion to double from current levels by “We have a low cost, high quality,
ment and reported the overwhelming the early 2020s. In addition, with expo- production base which is generating
feedback was that the proposal had little sure to oil prices, through both its oil strong cash flows and excellent growth
merit. sales and LNG contracts, the company opportunities, with the proposed PNG
“Oil Search is a pure PNG oil and gas is in a strong position to capitalise from LNG Train 3 and Papua LNG among
play with clear growth opportunities a recovery in the oil price,” the company the most competitive new develop-
and an excellent track record of deliv- said. ments in the world. Oil Search provides
ery. The Proposal would significantly “Oil Search is in a very robust financial its shareholders with a pure exposure
alter the fundamental characteristic of position, with strong operating cash to PNG and is fully committed to PNG.
an investment in the Company and di- flows from its producing assets, even Our focus is on continuing to build
lute the present growth profile available at current low oil prices, and current and create shareholder value through
to its shareholders,” the statement said. liquidity of US$1.6 billion, comprising the Company’s strong future growth
Oil Search said it had a material equity US$850 million in cash and US$750 prospects,” Mr Lee said.§
million in undrawn corporate credit
facilities.”
NPCP’s Kumul Petroleum Academy
join forces with SPEI in Workforce
Nationalisation Initiative
The National Petroleum Company PNG The conglomerate includes Orion A state-of-the-art process plant training
(NPCP) is taking an interest, through Group, an innovative global personnel facility is to be built in Port Moresby to
sponsoring the development of a live and human resources company and Site cater for the rapidly growing regional
plant training environment with the Group International (SGI) as a global resources, power and energy sectors
South Pacific Employment Institute expert in the development of competent including but not limited to upstream,
(SPEI) in PNG; a conglomerate formed workforces, associated technology and midstream and downstream oil and gas
as part of a Public Private Partnership immersive training and NPCP (Kumul sector as well as catering for other pro-
to train the nation for the expanding Petroleum). cess oriented industries and associated
PNG Oil and Gas and resources market. technical training.§
A A32 OIL & GAS ustral SIA SEPTEMBER/OCTOBER 2015 www.oilandgasaustralasia.com
