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BRIEF-Oil Search Intends To Sell 15% Interest In Pikka Project, Other Alaska Assets

Published 19/11/2020, 08:00 am
Updated 19/11/2020, 08:12 am
© Reuters.

Nov 19 (Reuters) - Oil Search Ltd OSH.AX :

* ALASKA UPDATE

* 33% INCREASE IN 2C CONTINGENT RESOURCE, TAKING TOTAL GROSS ALASKAN NORTH SLOPE 2C RESOURCES WITHIN OIL SEARCH'S PORTFOLIO TO 968 MMBBL

* WELL POSITIONED TO PROGRESS INTO FEED IN EARLY 2021 FOR A SINGLE DRILL SITE FIRST PHASE OF PIKKA PROJECT

* JOINT VENTURE FULLY ALIGNED ON PIKKA PHASE 1 DEVELOPMENT

* JOINT VENTURE FULLY ALIGNED ON PIKKA PHASE 1 DEVELOPMENT, TARGETING A FINAL INVESTMENT DECISION (FID) IN LATE 2021

* DEVELOPMENT WILL USE CAPITAL EFFICIENT APPROACH THAT WILL DELIVER A BREAKEVEN COST OF SUPPLY OF LESS THAN US$40/BARREL

* INCLUDING CONTINGENCIES, INITIAL PIKKA PROJECT COST IS EXPECTED TO BE LESS THAN US$3 BILLION (GROSS)

* MODIFICATION TO UNITED STATES ARMY CORPS OF ENGINEERS PERMIT RECEIVED, ALLOWING CONSTRUCTION OF NEW SEAWATER TREATMENT PLANT AT OLIKTOK

* ALIGNED WITH PIKKA FEED ENTRY IN Q1 OF 2021, OIL SEARCH PLANS TO LAUNCH A FORMAL DIVESTMENT PROCESS

* INTENDING TO SELL 15% OF ITS INTEREST IN PIKKA AND OTHER KEY ALASKAN ASSETS

* PLANS TO LAUNCH A FORMAL DIVESTMENT PROCESS FOR PIKKA, EITHER SOLELY OR IN COOPERATION WITH ITS JOINT VENTURE PARTNER

* PIKKA DEVELOPMENT WILL HAVE A GREENHOUSE GAS EMISSIONS INTENSITY ABOUT 75% LOWER THAN THE CURRENT ALASKAN NORTH SLOPE AVERAGE

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