Oil Search said that bids for the downstream EPC contract included competition between Chiyoda and Bechtel following a competitive bid process commenced between the two companies that commenced in October last year.

In addition, upstream contracting bids are due early in the third quarter 2009.

Front-end engineering and design activities for the project are targeted for the end of the third quarter, with preparatory work for early works activities already underway.

Construction of the PNG LNG Project is expected to commence at the start of 2010 following a final investment decision by the joint venture partners.

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The project is a joint venture between ExxonMobil as operator, Oil Search, Santos and Nippon Oil.