Oil Search's vast exploration portfolio in PNG is concentrated in four highly prospective areas - the North West (NW) Highlands, Central Foldbelt, Eastern Foldbelt / Onshore Gulf and the Deep-water Gulf.
The Company estimates its licences hold significant volumes of yet to be discovered gas, condensate and oil. Most of the leads and prospects in our acreage are extensions of proven hydrocarbon plays, increasing the chance of geological success. In addition, the majority of our prospect inventory is strategically located near existing and planned LNG infrastructure, ensuring that even modest discoveries have the potential to be commercially viable.
Oil Search's exploration strategy is to prioritise activities that create the most value. As such, the Company is targeting, at the appropriate time, gas opportunities which have the potential to add material backfill gas for existing LNG facilities and those that strengthen LNG expansion economics or can underpin additional LNG trains. In addition, subject to the oil price, investments are being made in activities designed to extend the production life of the Company's maturing oil fields and consequently defer abandonment costs. Limited permit commitments within the Company's portfolio allow us the flexibility to allocate capital to the highest quality prospects.
Near-term activities, however, are likely to be reduced until the PNG Government's proposed review of the Oil and Gas Act is complete and global oil prices recover.