May 1 (Reuters) - Oil Search Ltd (OSH) :
- PLAN TO UNDERTAKE FURTHER MEASURES TO REDUCE BREAKEVEN COSTS ACROSS BUSINESS AND TO OPTIMISE CAPITAL MANAGEMENT
- NOW IN MORE ROBUST POSITION AND ABLE TO WITHSTAND SUSTAINED PERIOD OF LOW OIL PRICES AND MARKET VOLATILITY
- SINCE JAN, PLAYED ROLE IN FACILITATING INFORMAL DISCUSSIONS BETWEEN EXXONMOBIL & PNG GOVERNMENT TO HELP BRIDGE GAP ON P'NYANG GAS AGREEMENT
- HAD NO DISRUPTIONS TO OPERATIONS IN PNG TO DATE FROM VIRUS
- INFORMAL DISCUSSIONS ONGOING BETWEEN EXXONMOBIL & PNG GOVERNMENT ON P'NYANG GAS AGREEMENT
- INFORMAL EXPLORATORY TALKS WITH PNG GOVERNMENT OCCURRED SINCE FORMAL SUSPENSION OF NEGOTIATIONS AT END OF JAN ON P'NYANG GAS AGREEMENT
- FIRST FOUR MONTHS OF 2020 HAVE BEEN ONE OF MOST VOLATILE PERIODS IN OIL MARKET HISTORY
- PLAN TO REDUCE PRODUCTION COST BY US$1-2 PER BOE, BEFORE RESTRUCTURING COSTS; EXPECT TO ANNOUNCE MEASURES BY MID-YEAR
- AS COVID-19 IMPACTS DIMINISH LATER IN 2020 & INTO 2021, EXPECT FISCAL STIMULUS IN KEY NORTH ASIAN MARKETS TO BE SUPPORTIVE OF LNG DEMAND
- IDENTIFIED OPPORTUNITIES TO REDUCE COSTS WITHIN OPERATED FIELDS WITHOUT HURTING PRODUCTION; THESE CHANGES COMES WITH HUMAN COST
- FORMAL DIVESTMENT PROCESS ON UPTO 15% STK IN ALASKA ASSETS ON HOLD, BUT CONTINUING "VERY CONSTRUCTIVE DISCUSSIONS" WITH INTERESTED PARTIES
- PROJECT DELAYS COULD ACCELERATE TIGHTENING OF GLOBAL LNG MARKETS OVER MEDIUM TERM TO MID-2020
- OIL SEARCH- RETURN IN GLOBAL ECONOMIC ACTIVITY IN H2 OF 2020 LIKELY
- POST EQUITY RAISE, TO HAVE LIQUIDITY OF >US$1.8 BILLION; SEES SUFFICIENT LIQUIDITY THROUGH TO 2021-END, ASSUMING BRENT AT US$20S/BBL OR HIGHER
- TO HAVE OPERATING AND SUSTAINING CAPITAL COST CASH BREAKEVEN, BEFORE FINANCING, OF LESS THAN US$15/BOE
- WITH EXTENT & PACE OF GLOBAL ECONOMIC RECOVERY STILL UNCERTAIN, BELIEVE OIL MARKET WILL REMAIN VOLATILE FOR SOME TIME TO COME
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