Oil Search, the owner of a 29 percent stake in the ExxonMobil-operated PNG LNG project, arranged a new five-year, non-amortising, revolving credit facility of $600 million with 14 banks.
The banking group includes all four major Australian domestic banks, one Papua New Guinean bank and nine international banks, Oil Search said.
This new facility is in addition to the two existing bilateral facilities totaling $250 million, taking the group’s total available facilities to $850 million, all of which remain undrawn.
Combined with the company’s cash balance, total liquidity is currently in excess of US$1.7 billion.
The new corporate facility replaces a $500 million non-amortising revolving credit facility that was due to expire in October 2017.
Commenting on the new facility, Oil Search’s managing director Peter Botten said, the new facility will provide Oil Search with funding flexibility for the next phase of LNG development and expansion in Papua New Guinea, while we also continue to progress focussed exploration and appraisal activities.