Managing Director Peter Botten said that the company has sufficient funds both for its equity contribution to the project, as well as funding for an appraisal and exploration program for possible future third and fourth trains.

Financial close on the project is anticipated in the first quarter of 2010, with completion of detailed design work and commencement of construction of associated gas facilities for the development expected during the year.

In 2010, Oil Search is planning a drilling program for development wells in the Moran field, a workover campaign in the Kutubu, Moran and SE Gobe fields and an appraisal of the Agogo deep play and a review of its implications for other areas.

The company has plans for a drilling program in 2010 and 2011 in the Korka and Mananda fields, located in the Forebelt/Highlands area adjacent to the PNG LNG upstream infrastructure, as well as the Flinders field in the Gulf of Papua.

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Other PNG LNG joint venture partners include ExxonMobil as operator, Santos and Nippon Oil.

The project envisages an integrated development of the Hides, Angore and Juha gas fields as well as associated gas from the Kutubu, Agogo, Gobe and Moran oil fields to produce 6.6MMt/a of LNG. The first LNG cargo is expected to be shipped in early 2014.