Oil Search signs deal

Business

OIL Search (PNG) Limited has entered into agreements with Gini Energy Limited, to acquire a 40 per cent interest in the PPL (Petroleum Prospecting Licences) 374 and 375.
The licences are located about 150 kilometres south of Port Moresby in the deep water section of the Gulf of Papua.
It covers an area of 24,936 square kilometres, with depths between 1000 and 2500 metres.
“ExxonMobil will also acquire a 40 per cent interest in each licence while Gini will retain a 20 per cent interest in each licence,” according to a company statement.
“Subject to conditions precedent, operatorship of both licences will transfer from Gini to ExxonMobil.”
Managing director Peter Botten said “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 (trillion cubic tonnes) gas leads and prospects already delineated in these licences,” he said.
“We are delighted to be partnering with ExxonMobil, which has significant experience in exploration and production in deep water.
“We welcome the opportunity to work with CNOOC Limited (parent company for Gini Energy) for the first time.”
Botten said entering these licences was consistent with the company’s strategy to focus on areas that had the potential to support the company’s expanding LNG.
He said the completion of the farm-in agreements and Oil Search’s acquisition of the licence interests were subject to conditions including regulatory approvals.

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