News: OSH Oil Search Targets FID On Pikka Project In Late 2021

Nov 19 (Reuters) - Oil Search Ltd (OSH) :

• ALASKA UPDATE
• 33% INCREASE IN 2C CONTINGENT RESOURCE, TAKING TOTAL GROSS ALASKAN NORTH SLOPE 2C RESOURCES WITHIN OIL SEARCH'S PORTFOLIO TO 968 MMBBL
• WELL POSITIONED TO PROGRESS INTO FEED IN EARLY 2021 FOR A SINGLE DRILL SITE FIRST PHASE OF PIKKA PROJECT
• JOINT VENTURE FULLY ALIGNED ON PIKKA PHASE 1 DEVELOPMENT
• JOINT VENTURE FULLY ALIGNED ON PIKKA PHASE 1 DEVELOPMENT, TARGETING A FINAL INVESTMENT DECISION (FID) IN LATE 2021
• DEVELOPMENT WILL USE CAPITAL EFFICIENT APPROACH THAT WILL DELIVER A BREAKEVEN COST OF SUPPLY OF LESS THAN US$40/BARREL
• INCLUDING CONTINGENCIES, INITIAL PIKKA PROJECT COST IS EXPECTED TO BE LESS THAN US$3 BILLION (GROSS)
• MODIFICATION TO UNITED STATES ARMY CORPS OF ENGINEERS PERMIT RECEIVED, ALLOWING CONSTRUCTION OF NEW SEAWATER TREATMENT PLANT AT OLIKTOK
• ALIGNED WITH PIKKA FEED ENTRY IN Q1 OF 2021, OIL SEARCH PLANS TO LAUNCH A FORMAL DIVESTMENT PROCESS
• INTENDING TO SELL 15% OF ITS INTEREST IN PIKKA AND OTHER KEY ALASKAN ASSETS
• PLANS TO LAUNCH A FORMAL DIVESTMENT PROCESS FOR PIKKA, EITHER SOLELY OR IN COOPERATION WITH ITS JOINT VENTURE PARTNER
• PIKKA DEVELOPMENT WILL HAVE A GREENHOUSE GAS EMISSIONS INTENSITY ABOUT 75% LOWER THAN THE CURRENT ALASKAN NORTH SLOPE AVERAGE