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.
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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.
