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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (1056)	5/3/1999 10:34:00 PM
From: Tomas	Respond to of 2742

Papua New Guinea: Oil Search is confident of expanding market for gas The National, Tuesday April 4 By KEVIN PAMBA PORT MORESBY: Oil Search is confident viable markets for PNG gas can be established in the southeast Queensland/Brisbane area apart from initial plans to meet the north Queensland market. Its recent agreement with US oil company Exxon's PNG subsidiary, Esso Highlands, had ensured that adequate reserves were available for multi-billion kina PNG-Queensland gas project, paving the way for finalisation of gas contracts. In its report for the first quarter of this year, Oil Search managing director Peter Botten said "the agreement has provided the catalyst to reconvene negotiations with customers in Townsville and Gladstone and fully evaluate the possibility of delivering gas into Southeast Queensland/Brisbane area." "We are confident that viable markets in this area can be established and that the total potential market for PNG gas can be expanded to include various electricity and industrial customers south of Gladstone," he said. "Discussions with a number of potential customers are well advanced." He also said "the marketing effort of the project sponsors have been boosted by the involvement of AGL Wholesale Gas which is providing additional expertise and personnel for an intensive marketing effort that is presently taking place." Mr Botten said besides setting a clear focus on the marketing of gas and the signing of long-term contracts for PNG gas, an analysis of optional ownership structure and financing of the gas infrastructure in PNG is taking place to optimise Oil Search's investment strategy and project viability. He said further technical work is taking place in preparation for front end engineering and design work on the project. "Resolution of the reserve issue represents a significant breakthrough in restoring momentum of the project and in ascertaining the viability of the project with customers in Queensland," said Mr Botten. wr.com.au