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BRIEF-Oil Search Says FY21 Investment Expenditure Guidance Reduced By US$75 - 95 Mln

Published 23/04/2021, 09:34 am
© Reuters.
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April 23 (Reuters) - Oil Search Ltd OSH.AX :

* PNG LNG PRODUCTION AVERAGED 8.5 MTPA (GROSS) IN QUARTER

* TOTAL NET QUARTER PRODUCTION OF 6.9 MMBOE, DOWN 2.7% FROM Q4 2020

* Q1 OPERATING REVENUE OF US$301.5 MILLION, UP 16% FROM Q4 2020

* OIL SEARCH OPERATED FACILITY PLANNED SHUTDOWNS DEFERRED TO 2022

* PNG LNG PLANNED SHUTDOWN REMAINS SCHEDULED FOR Q2 2021

* PRODUCTION GUIDANCE FOR 2021 IS UNCHANGED

* FY21 INVESTMENT EXPENDITURE GUIDANCE REDUCED BY US$75 - 95 MILLION

* LOOKING TO CONTRIBUTE UP TO 15% INTEREST IN DIVESTMENT TARGETING A FINAL EQUITY INTEREST IN PIKKA DEVELOPMENT OF 36%

* FY21 INVESTMENT EXPENDITURE REVISED DOWN DUE TO COST SAVINGS AND EFFECTS OF TRAVEL RESTRICTIONS IN PNG

* IN ADDITION TO DIVESTMENT PROCESS, COMMENCED A PROJECT FUNDING PROGRAM WITH FINANCIAL ADVISOR FOR PIKKS

* BIOMASS INVESTMENT EXPENDITURE DECREASED DUE TO EXPECTED DEFERRAL OF FID TO 2022

* MAJOR MAINTENANCE SHUTDOWN IN OPERATED FACILITIES HAS BEEN DEFERRED FROM 2021 TO 2022 DUE TO COVID-19 RESTRICTIONS

* PURSUING POTENTIAL FUNDING OPTIONS FOR PIKKA PROJECT BASED ON CURRENT 51% OWNERSHIP

* INTENT IS TO OWN 36% OF PIKKA PROJECT LONG TERM

* FURTHER INCREASES IN CONTRACTED REALISED PRICES ARE EXPECTED IN NEXT QUARTER GIVEN LAGGED EFFECT OF PRICE SETTING

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