Speaking at the Good Oil Conference in Fremantle yesterday, Botten said Oil Search was focused on continued growth and using diversification to deliver value.
Botten said the company’s planned three in-country developments would require a fivefold increase in production over the next four years.
As well as the currently stalled PNG Gas project, Oil Search is considering developing a petrochemicals plant in Port Moresby, requiring around 150 petajoules of gas per annum, an ammonia plant, and a possible liquefied natural gas facility that would need around 250 petajoules per annum.
Botten said the proposed petrochemicals plant was at the final feasibility study stage, with a sanction decision expected next year, with possible first production in 2010. Japanese partners in the development Mitsubishi and Itochu are said to be looking to sign a sales commitment to the project for 86PJpa.
First production from the ammonia plant, to be developed in partnership with Oswal Industries, is pegged for 2010 with a detailed feasibility study said to be ongoing.
Last week, the company said it had signed a memorandum of understanding with major British Gas for developing a single-train LNG facility in PNG.
Botten said first production from the proposed facility would probably be about 2013, with British Gas likely to completed studies into the development within the next six to 12 months. Gas for the development would be sourced from Hides, Angore and Juha where a significant exploration program is planned for the coming year.
But Botten also said the PNG Gas project remained the company’s preferred option as a near-term development.
He said it remained a “robust economic project” and he was still hopeful on settling a range of issues in the short term, including gas prices, final loads and distribution, confirmation of the pipeline route and capital cost estimates.
Last month, the PNG Gas project suffered a major setback when Australian Gas Light decided to scale back engineering studies due to a lack of foundation customers. However, AGL recently revealed it was still considering development of the pipeline in stages.
Botten said Oil Search could take a hardline stance on the project if delays continued, “as there are other options for development”.
