Commodities News

Oil Search Miseries in Papua New Guinea Shed Light On Alaska

With a giant gas mission expansion in the tropical highlands of remote Papua New Guinea slowed down by politics, the nation’s biggest firm, Oil Search, is popping for progress to the opposite aspect of the world in Alaska’s frozen wilderness.

Australia-listed however headquartered in Port Moresby, the A$10.7 billion ($7.2 billion) oil and fuel producer has formed the trade in Papua New Guinea over the past nine decades, helping drive development in the impoverished nation.

However, the scale of its PNG projects has left it dependent on decisions by big international companions, while authorities call for a bigger stake in resource initiatives may delay a planned $13 billion liquefied natural gas (LNG) expansion.

The ambiguity has opened a window for Oil Search to push ahead with a promising field in Alaska’s North Slope oil field that it bought into in 2018 and where it’s the mission operator.

Regardless of a steep learning curve, it plans to start producing as early as 2022 to help reach a goal of doubling its annual output to about 60 million barrels of oil equivalent by 2025.

Oil Search parlayed its years in Papua New Guinea (PNG) into a 29% stake in the PNG LNG venture, led by Exxon Mobil, and a 23% stake in the Papua LNG mission, led by Total, and has been a critical participant behind a plan to unite the two tasks and double the nation’s LNG exports.

The projects are thought-about among the best on this planet, blessed with low costs, high-quality gas, existing infrastructure, and proximity to Asia, factors that have long made Oil Search subject to takeover speculation.

To start production at the planned expansion by 2024, Oil Search’s companions need to nod a yes next year on the two projects.

Danielle Hollman

By Danielle Hollman

Danielle is a Market expert with vast experience in commodities. She also has expertise in marketing and international business communication in her career portfolio. She has worked with several entrepreneurs, financial services firms, and media houses. Danielle joined FBI Market News in 2018. Now, she is leading the Commodity column.