Horizon Oil sells stake to Osaka Gas

 HORIZON Oil has sold 40% of its natural gas assets in Papua New Guinea to Japan’s Osaka Gas for US$204 million.

The sale marks the beginning of a 60/40 strategic alliance between Horizon and Osaka Gas, which is one of Japan’s largest utility companies.

Horizon has made a series of discoveries and is considering a new gas-export facility on the south coast of PNG’s mainland.

As reported by Radio New Zealand last Friday “Horizon will receive US$74 million in cash up front from Osaka.

And a further US$130 million if a decision is made to build an LNG export project.

Horizon has already partnered with Japan’s Mitsubishi Corp and Canada’s Talisman Energy in looking to combine natural gas from several fields in PNG’s flat forelands region.

Reflecting Japan’s growing interest in PNG gas, Mitsubishi took a foothold in the country last year, spending 280 million to buy stakes in several discoveries and exploration blocks from Talisman.

Horizon’s chief executive Brent Emmett says that together, they have enough reserves to underwrite a planned plant in Daru, Western.