Oil Search's Botten Says Balance Sheet Is Really Strong

The transcript discusses the financial health and strategic plans of a company involved in LNG production. It highlights the company's strong balance sheet, investment in high-return projects, and plans for expanding LNG production in PNG. The discussion covers market dynamics, including supply-demand balance and pricing strategies, and the impact of US LNG exports on global competition. The company is optimistic about future opportunities in PNG, emphasizing the importance of government collaboration and efficient resource management.

What is the company's current financial position?

• The company is planning to raise funds through a new stock offering.

• The company is struggling with cash flow issues.

• The company has a strong balance sheet with significant liquidity.

• The company is in debt.

What is the expected impact of the PNG LNG expansion?

• It will decrease production levels.

• It will lead to a decrease in shareholder returns.

• It will double production out of PNG over the next 5 to 7 years.

• It will have no impact on production.

What is the current trend in LNG demand in Asia?

• Demand is stable.

• Demand is unpredictable.

• Demand is decreasing.

• Demand is growing strongly, especially in China and Korea.

What is the focus of the PNG government regarding LNG projects?

• Reducing LNG exports.

• Eliminating all LNG projects.

• Increasing the use of gas in the domestic market and local involvement in construction.

• Focusing solely on international partnerships.

How has the LNG market changed since 2009?

• There are more long-term contracts now.

• There is a larger trading volume and shorter contract terms.

• The market has become less competitive.

• There are fewer projects being sanctioned.

What is the expected role of the US in the LNG market by 2020?

• The US will stop exporting LNG.

• The US will become the third largest exporter of LNG.

• The US will focus only on domestic LNG consumption.

• The US will become the largest exporter of LNG.

What is the company's strategic focus for the future?

• Expanding into multiple countries.

• Focusing on opportunities in PNG and managing local expectations.

• Diversifying into unrelated industries.

• Reducing its presence in PNG.