Seeking Alpha

WSJ: Odds are against Oil Search joining Papua New Guinea gas project

  • Anyone expecting Oil Search (OISHF) to conclude a deal soon with Total (TOT -2.1%) and InterOil (IOC -1.3%) to join their Papua New Guinea gas project may be thinking wishfully, according to a WSJ report.
  • OISHF likely will need to issue new shares to fund a deal, but that isn’t easy to do right now, as any capital raise likely would happen at a discount to the prevailing stock price; but it's the potential blow it would inflict on the government in Papua New Guinea that is more likely to stay Oil Search CEO Peter Botten’s hand for a while, David Winning writes.
  • Another take is that TOT will want to appraise the gas reserves at the Elk and Antelope fields further before rushing to bring in a new partner; if TOT finds there is enough gas to support a new export project, then it makes partnering with OIS less attractive.
This was corrected on 01/24/2014 at 11:13 AM.
Comments (1)
  • arun21
    , contributor
    Comments (15) | Send Message
     
    I believe you mean OSH or OISHY... OIS is Oil States International.
    24 Jan, 11:00 AM Reply Like
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