Speaking via a webcast on Tuesday following the delivery of a record $US200.2 million profit on, Oil Search managing director Peter Botten said three 'parties' were speaking with the PNG government this week in relation to a significant liquefied natural gas development in the country.
Botten confirmed Oil Search had previously been involved in discussions with both the PNG government and Chinese parties with regards to a possible involvement in an LNG development.
"We have had a number of discussions with a number of parties, including the Chinese, about their ongoing participation. There is a range of presently uncommercialised gas resources in PNG," Botten said.
"The trick is definitely to bring them together to allow second and third phase developments to happen."
"I am sure we will announce as and when progress is made with those people."
The PNG government recently confirmed it had held discussions with state-owned Chinese companies China National Offshore Oil Corporation (CNOOC) and China National Petroleum Corporation (CNPC).
Discussions were said to have focused on the possible development of a large LNG processing plant as well as the prospect of a northern pipeline.
Meanwhile, following aggressive action taken by Alinta on the ASX over the past few days, Botten said Oil Search did not envisage any material impact on the PNG-Queensland pipeline should control of AGL change hands.
Yesterday, the Perth-based Alinta confirmed it had moved to a 19.9% stake in AGL and is reportedly now in a position to block AGL's demerger proposal, due to be voted on by shareholders next month.
"I haven't spoken with Alinta, although I may well speak to (AGL CEO) Mr Browning. The reality is that anybody who does look at AGL as a potential investment and bids a large number for that investment is clearly wanting to make maximum value out of that investment," Botten said.
Last week, AGL and Oil Search finalised the sale of a 10% equity stake in the PNG gas project for a total of $US427 million. AGL also holds a 50% stake in the PNG pipeline.
"We see that AGL's investment in the PNG gas project, in terms of the upstream revenue stream, is part of that value that any investor buying AGL would want to realise. So we see that as a key part of the total picture," Botten said.
"The gas sales agreement done already with AGL is one that has limited conditionality around financial close. From a pipeline perspective it makes sense to build the pipeline, whoever owns that asset.
"We don't see any real impact on our business in terms of whoever owns AGL."
