Oil Search, Exxon Acquire Stake in PNG Gas Acreages
Oil Search and ExxonMobil have entered into agreements with Gini Energy, a subsidiary of China’s CNOOC, to each acquire a 40% interest in PPL 374 and PPL 375 in Papua New Guinea (PNG). Gini Energy will retain a 20% interest in each licence. Exxon Mobil will become the operator of both the licences, Oil Search said September 12.
The licences are located approximately 150 kms south of Port Moresby in the deep water section of the Gulf of Papua and cover a combined area of 24,936 km2.
“During 2015-16, we undertook a comprehensive study of exploration opportunities in PNG. This work identified the offshore Papuan Gulf as an area where there is significant gas potential, with several multi-tcf gas leads and prospects already delineated in these licences,” Oil Search’s managing director, Peter Botten, said. “Entering these licences is consistent with the company’s strategy to focus on areas that have the potential to support the company’s expanding LNG portfolio.”
Oil Search has interests in two PNG based LNG projects: ExxonMobil operated PNG LNG project, which is due for expansion, and Total operated Papua LNG project, which is based on development of the Elk-Antelope gas fields in PRL 15.
ExxonMobil recently acquired a PNG focused explorer, InterOil for more than $2.5bn.
Shardul Sharma