Oil Search is within weeks of starting a drilling campaign that will determine the viability of expanding its $US15.7 billion Papua New Guinea liquefied natural gas project. Drilling on the keenly awaited P’nyang South well in the Highlands – its largest ever drilling campaign – should start “shortly" and will be followed by the Trapia well, Oil Search said. Oil Search, ExxonMobil’s biggest partner in the LNG venture, saw a better than expected 22 per cent jump in fourth-quarter sales due to higher oil prices, lifting full-year sales by 26 per cent. Oil Search shares rose 2.7 per cent to $6.84, their highest for over five months. Angela Macdonald-Smith

Horizon Oil is set to expand exploration in Papua New Guinea through an agreement to buy a 25 per cent interest in Eaglewood Energy’s PPL259 licence in the Papuan Basin for up to $US8.9 million ($8.5 million).