An agreement on fiscal terms for the P’nyang project has not been forthcoming. Papua LNG is now the sole focus. Citi notes Papua LNG will need to renegotiate its commercial terms with PNG LNG and re-engineer the downstream.
The broker questions the viability of Papua LNG, as there are 80mtpa of projects on the go that are credible, which is well beyond the amount the world needs sanctioned for some time.
Both Total and ExxonMobil have various growth options in their portfolios.? Citi maintains a Neutral rating for Oil Search and reduces the target to $6.68 from $7.81.
Sector: Energy.
Target price is $6.68.Current Price is $6.72. Difference: ($0.04) – (brackets indicate current price is over target). If OSH meets the Citi target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
