Oil Search to lift dividends

Oil Search (OSH) expects its Papua New Guinea liquefied natural gas project to be producing at full capacity by 2015, and then plans to materially increase dividend payments.

Dividends were kept steady during the construction phase, chairman Richard Lee told shareholders at the group's annual general meeting. 

Its first tanker from the project is now loading and will depart for Asia in the next few days, after production started in April, he said.

Having the PNG government as a shareholder in Oil Search is beneficial to both parties, Mr Lee said, after the government bought a 10% stake worth $1.22 billion in the explorer in February.