Oil Search Limited’s
(ASX:OSH) part owned $US19 billion PNG LNG project in Papua New Guinea is set for expansion.
The project’s operator Exxon Mobil has inked a Memorandum of Understanding with the Papua New Guinea government for the development of domestic gas for electricity generation.
Oil Search’s Managing Director Peter Botten believes the agreement meets the needs of all stakeholders and will deliver much needed power to the people of PNG.
The deal also provides an agreed timeline and activities for an expansion train at PNG LNG supported by P'nyang, which Mr Botten believes is a key growth asset in Oil Search's portfolio.
Oil Search reported a net profit of almost $162 million in the first half of the 2014 calendar year.
