Oil Search to Acquire 40% interest in Offshore Papua New Guinea Licenses
Oil Search (PNG) Limited has entered into agreements with Gini Energy Limited, ultimately owned by CNOOC Limited, to acquire a 40 percent interest in PPL 374 and PPL 375, offshore Papua New Guinea.
The licenses are located approximately 93 miles south of Port Moresby in the deep water section of the Gulf of Papua and cover a combined area of 9,627 square miles. ExxonMobil has stated that it will also acquire a 40 percent interest in each license while Gini will retain a 20 percent interest in each license. Subject to conditions precedent, the operatorship of both licenses will transfer from Gini to ExxonMobil.
“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 licenses,” said Oil Search’s Managing Director, Peter Botten.
“We are delighted to be partnering with ExxonMobil, which has significant experience in exploration and production in deep water, and we also welcome the opportunity to work with CNOOC Limited for the first time. Entering these licenses is consistent with the company’s strategy to focus on areas that have the potential to support the company’s expanding LNG portfolio,” he added.
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