Oil Search signs new US$600 million credit facility

Company News

by Jessica Amir

Oil Search Limited (ASX:OSH) has established a new US$600 million revolving credit facility for a five-year term.

The oil and gas development company says the new facility will be used for the next phase of its LNG development and expansion in PNG, while it will also continue to progress its exploration and appraisal activities.

Oil Search obtained the finance from a 14 member-bank group, which includes four major Australian banks, one PNG bank and nine international banks.

The new loan replaces its US$500 million facility that was due to expire in October 2017.

But, as the company experienced such strong lender demand and it was also offered attractive terms it increased its lending target to US$600 million.

Oil Search says the new funding takes its total available facilities to US$850 million, all of which remain undrawn.

Shares in Oil Search Limited (ASX:OSH) last traded over 2.1% higher to $6.60
 

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