Oil Search, LNG project partners reach deal over interests

OIL Search Limited (Oil Search) says it has reached an agreement with its joint venture partners in the PNG LNG project regarding the redetermination of participating interests.
According to a recent statement from the company, the parties have agreed that the current redetermination process, initiated last December, would be discontinued and that all future redeterminations, provided for under the PNG LNG coordinated development and operating agreement, would be cancelled and that no adjustment would be made to participating interests in PNG LNG project.
“As part of that agreement, Oil Search will be entitled to a carried interest of US$176 million (about K609.07 million) from certain non-PNG state joint venture partners, targeted over the years ending Dec 31, 2022 to Dec 31, 2024, in respect of certain agreed PNG LNG capital expenditures,” according to Oil Search.
“Post-2024, this carry may be reduced or increased once the results of future drilling activities are assessed.”