Oil Search has entered into three new US$100 million bilateral revolving credit facilities with three major banks, totalling US$300 million (K953 million).
The credit facilities aim to support the company’s growth opportunities in both its PNG and Alaska assets.
The banks include the Commonwealth Bank of Australia (CBA), Mizuho Bank Limited (Mizuho) and Sumitomo Mitsui Banking Corporation Sydney Branch (SMBC).
The new facilities each have a five-year term and will expire in December 2023. They replace two US$125 million bilateral facilities that were due to expire in December 2018.
Oil Search now has access to committed revolving credit facilities totalling US$900 million, with US$600 million expiring in June 2022 and US$300 million expiring in December 2023.
Commenting on the new bilateral facilities, Oil Search’s Managing Director Peter Botten thanked CBA, Mizuho and SMBC for their continued support, not only through these new bilateral facilities, but through their participation in the Company’s existing syndicated US$600 million revolving credit facility.
Botten said with more than US$1.4 billion in cash and committed facilities at the end of September 2018 and excellent cash generation from low-cost operations, Oil Search has the financial flexibility to support its growth opportunities in both PNG and Alaska.
In PNG the company has both oil opportunities and gas expansion plans in place up to 2023 – 2024.