Oil Search moves on plan

 A KEY focus for Oil Search, its joint venture partners and the Government is to complete the full assessment on the gas resource in Elk/Antelope (PRL 15) and soon move into development phase.

Oil Search managing director Peter Botten (pictured) said that in a statement after an international court resolved the dispute over the ownership of the Elk/ Antelope gas fields in Gulf.

The International Court of Arbitration of the International Chamber of Commerce declined to issue the company pre-emptive rights relating to PRL 15.

This paved the way for Total SA to seal its acquisition of a 40 per cent stake in the assets. 

InterOil last year introduced the French oil giant as a partner into the Elk and Antelope gas fields in Gulf.

But Oil Search Ltd disputed the up-to-US$3.6 billion (K9.46bn) deal. 

“Oil Search’s 22.8 per cent interest in PRL 15 is a core asset for the company,” Oil Search said in a statement.

“The Elk/ Antelope fields represent a world-class gas resource which has the potential to underpin a major new LNG development or LNG expansion, both of which are potentially commercially attractive.

“In a complex, non-unanimous, judgement, the ICC decision declared that Total is a party to the Elk/Antelope joint venture operating agreement.” 

The court ruled that Total will have to comply with some transfer clauses to close the deal. 

“Oil Search anticipates that InterOil and Total will attempt to comply with these terms and the company intends to work constructively with its joint venture partners to resolve all outstanding transfer and joint venture management issues.”