It added the studies on the plant’s technical aspects have been expanded, with the joint venture reviewing different options such as having a single large LNG train or two smaller LNG trains as well as different technologies.

The company added the capital expenditure estimates of between $US9-10 billion for a plant capable of producing up to 7 million tonnes of LNG per annum appeared robust.

Oil Search noted the plant location has also been finalised while its joint venture partners are working towards agreement on the unitisation framework and joint development agreement.

The ExxonMobil-led project is based on reserves at the huge Hides gas deposit and nearby deposits at Angore and the Juha field. The project targets mid-2013 for its first shipment of LNG.

Meanwhile, Oil Search said while a separate study with BG remained a potentially attractive option, it was dependent on gas availability.

The BG study focuses on the gas reserves in the oil-producing fields at Kutubu, Gobe and Moran to support a separate project that could start LNG production in 2012.

In related news, PNG Deputy Prime Minister Dr Puka Temu said the Government would support Oil Search's LNG development plans in the Southern Highlands province.

He also urged provincial and local level governments as well as the people to support the company's plans.