"We declare our first goal to be for every person to be dynamically involved in the process of freeing himself or herself from every form of domination or oppression so that each man or woman will have the opportunity to develop as a whole person in relationship with others".

- Papua New Guinea National Goals and Directive Principles

Wednesday, 15 December 2010

Exxon has Room to Expand

Bloomberg.com 15/12/10

Exxon Mobil Corp.’s liquefied natural gas project in Papua New Guinea could add a third production line because of the possibility of finding more natural gas, Sanford C. Bernstein & Co. said.
The Hides gas area may contain 50 percent additional deposits compared with currently booked reserves, Bernstein said in a report today. Exxon and Oil Search Ltd. plan to produce 6.6 million metric tons a year of the frozen fuel in 2014 from two production lines at a $15 billion LNG venture.
“The main trunk-line for PNG LNG has the capacity to accommodate a third and possibly fourth LNG train at a low cost, making the marginal return on LNG expansion extremely attractive,” Hong Kong-based analysts, Neil Beveridge and Angus Chan, said in the e-mailed note.

Oil Search and InterOil Corp. are among those planning to build LNG projects in Papua New Guinea to supply growing Asian economies. The country remains under-explored and under- appraised, and the possibility of multi-trillion cubic feet discoveries, which could underpin future LNG projects, remains high, Bernstein said.
Oil Search wants to find reserves to support two more processing units at the Exxon-operated LNG venture, it said in April.
The analysts gave Oil Search an “outperform” rating and increased the share-price target to A$8.50 from A$8. Oil Search advanced 1.2 percent to A$7.01 in Sydney trading today, compared with a 0.1 percent increase for the benchmark S&P/ASX 200 Index.

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