Firms to sell 20pc interest

Business

OIL Search and ExxonMobil have signed an agreement to sell a 20 per cent interest in Petroleum Prospecting Licence (PPL) 402 to Barracuda Limited, a subsidiary of Santos.
Both had a 50 per cent interest in PPL 402.
Oil Search (PNG) Limited will retain a 37.5 per cent interest while ExxonMobil’s subsidiary Esso PNG Wren Limited, will retain a 42.5 per cent interest.
PPL 402 is located about 40 kilometres northwest of the Hides gas field and production facilities in Hela.
The licence covers an area of 510 km2.
It is within the highly prospective thrust and fold belt trend.
The licence covers an area of 510 kilometre- square.
According to Oil Search, the agreement would result in Barracuda participating in the recently spudded Muruk 1 well.
Muruk 1 is targeting a mean gas resource of about two trillion cubic feet in cretaceous sands of the Toro formation, at a depth of around 3450 metres.
The target reservoir is hydrocarbon-bearing in the nearby Hides and Juha gas fields. Commenting on the farm-in, Oil Search managing director Peter Botten, said: “This transaction is consistent with the company’s strategic approach of working with selected partners to balance risk while holding appropriate participation levels in opportunities that have the potential to add material gas resources to the company’s portfolio.”
The completion of the sale and purchase agreement, and Barracuda’s acquisition of the licence interest is subject to conditions precedent, including regulatory approvals.

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