Oil Search: LNG Prices to Remain Soft for a Bit Longer

The video discusses the company's strategy to maintain production levels despite challenging market conditions, emphasizing the low operating costs of LNG production in PNG. It explores the outlook for LNG prices, noting a delay in demand due to COVID-19 but predicting a future strengthening of prices. The video also covers ongoing project negotiations and the impact of changing market conditions. Finally, it highlights the company's efforts to drive sustainable cost reductions across its projects, aiming for long-term efficiency improvements.

Why does the company not intend to cut production despite the challenging price environment?

• Because they expect oil prices to rise soon.

• Because they have high operating costs.

• Due to government regulations.

• Due to the low operating costs of LNG production in PNG.

What is the expected trend for LNG prices in the medium term?

• Prices are expected to strengthen.

• Prices are expected to decrease.

• Prices will fluctuate unpredictably.

• Prices will remain stable.

What was a major factor that delayed LNG demand and projects globally?

• A decrease in global oil prices.

• The COVID-19 pandemic.

• New environmental regulations.

• Technological advancements in energy.

What was a significant challenge in resuming discussions for the PNG project?

• Political instability in the region.

• High project costs.

• COVID-19 restrictions on meetings.

• Lack of interest from investors.

How has the company approached cost management during the COVID-19 pandemic?

• By temporarily reducing production.

• By focusing on sustainable cost reductions.

• By laying off a significant portion of the workforce.

• By increasing investment in new projects.

What is the company's strategy for managing costs in both mature and new projects?

• Increasing capital investment.

• Driving costs down sustainably.

• Halting all new projects.

• Reducing the workforce.

What is the expected impact of the company's cost reduction efforts on their financials?

• Short-term financial losses.

• Immediate increase in profits.

• No significant impact.

• Long-term cost benefits.