Exxon secures extra $1.5B financing for PNG LNG project


Exxon Mobil (XOM +0.7%) has secured an additional $1.5B in debt financing for its $19B Papua New Guinea liquefied natural gas project, according to project partner Oil Search (OIS +1.7%).

The $1.5B in supplemental financing will help cover overruns at the 6.9M metric tons/year LNG development, where costs have climbed to $19B.

The PNG LNG project is the country's biggest-ever resources development and could lift GDP by 20%; OIS says the project remains on track to deliver its first LNG cargoes in 2014.

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Comments (4)
  • User 353732
    , contributor
    Comments (5152) | Send Message
     
    XOM is well positioned to become a major global force in LNG within 5 to 7 years and become BIg Gas. It has the technology, the management, the capital and the natural gas reserve base.
    4 Oct 2013, 12:39 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (5095) | Send Message
     
    Unfortunately XOM has major competition in gas with CVX and COP and even somewhat with BP. All 3 seem to be ahead of XOM on their planning and cost structure.
    Imo, 5 - 7 years is far too long to wait for XOM to perform, while they lowered their buyback and have a much lower dividend than all 3 above.
    4 Oct 2013, 01:02 PM Reply Like
  • optionsexpert
    , contributor
    Comments (482) | Send Message
     
    I would rather own $XOM than $CVX or $COP.
    4 Oct 2013, 02:30 PM Reply Like
  • JohnMac2002
    , contributor
    Comments (16) | Send Message
     
    If I was Exxon I would be a little concerned about the PNG government's recent move to nationalize the Ok Tedi copper mine, and expropriate its related Singapore based Trust Fund. Doesn't help the sovereign risk profile for further potential investment in the country.
    7 Oct 2013, 08:49 AM Reply Like
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