Insights

Oil Search (ASX:OSH) share price gains 18% in 14 days. Here’s why

It’s been a good fortnight on the ASX for the oil and gas explorer…
The post Oil Search (ASX:OSH) share price gains 18% in 14 days. Here’s why appeared first on The Motley Fool Australia. –

The Oil Search Ltd (ASX: OSH) share price has been performing well lately, and there are plenty of reasons why.

Oil Search is in a fantastic position right now. The price of oil is at a 7-year high, its merger with Santos Ltd (ASX: STO) is inching closer, and it recently reached a commercial agreement with its joint venture partners in the PNG LNG project.

At the time of writing, the Oil Search share price is $4.47. That’s 3% higher than its previous close and 18% higher than it was 2 weeks ago.

Let’s take a closer look at what might be boosting the oil producer’s stock higher lately.

What’s driving the Oil Search share price lately?

The Oil Search share price has been enjoying a brilliant fortnight as numerous factors align in its favour.

One factor that’s likely driving Oil Search’s stock is completely out of the company’s control. That is the increasing oil price. Right now, a barrel of West Texas Intermediate oil will set a buyer back US$77.83. Meanwhile, the price of Brent crude oil is US$81.65 per barrel.

According to reporting by Reuters, the price of oil is being driven higher as OPEC+ said it wouldn’t boost its supply despite growing global demand.

Meanwhile, Oil Search’s merger with fellow ASX energy giant Santos is approaching the horizon.

The merger is subject to the approval of the Papua New Guinean court, Oil Search shareholders, and regulators. Oil Search expects the first Papua New Guinean court hearing will take place later this month, with the second occurring in December.

Additionally, the merger will be put to a shareholder vote next month for an expected implementation date of 16 December.

Finally, the Oil Search share price was boosted on Thursday after the company announced it reached a commercial agreement with its joint venture partners in the PNG LNG project.

The partners agreed the project’s current redetermination process will end, and all future redeterminations will be cancelled.

Under the agreement, Oil Search will get a carried interest of $US176 million from certain non-Papua New Guinean joint venture partners, targeted over the years ending 31 December 2022 to 31 December 2024 in respect of agreed capital expenditures. The carry might change when the results of future drilling activities are assessed after 2024.

The Oil Search share price gained 1.8% on the back of the news.

The post Oil Search (ASX:OSH) share price gains 18% in 14 days. Here’s why appeared first on The Motley Fool Australia.

Should you invest $1,000 in Oil Search right now?

Before you consider Oil Search, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Oil Search wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 (ASX:XJO) midday update: Afterpay & Zip sink, energy shares rise

These were the 5 best performing ASX 200 resources in September

Why did the Santos (ASX:STO) share price have such a great month in September?
These were the best performing ASX hydrogen shares of September

ASX 200 energy shares on watch as OPEC meeting drives up oil prices

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!