Wednesday, November 14, 2012

Oil Search shares fall as PNG LNG costs rise


Shares in Australia's Oil Search Ltd, a partner in Exxon Mobil's Papua New Guinea LNG (PNG LNG) project, fell 5%  today (Monday) after the costs of the massive gas export development were revised sharply higher.
In a letter published on Monday, Exxon told its partners costs would rise 21% to $19 billion due to foreign exchange impacts and delays from work stoppages and land access issues.
Shares in Oil Search fell as low as A$6.96 and last traded down 5.2% to A$6.98, while shares in Santos Ltd, another partner in the project, fell 2.4% in a broader market down 0.3%.

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