Santos, Talisman ink deal

 SANTOS announced last Friday it will participate in two exploration permits in Western. 

A deal with Talisman gives Santos 30% interest in the permits PPL 261 and PPL 426.

A company statement said the terms of the agreements are confidential and Talisman will remain operator of the permits. 

Santos and Talisman are also in talks for Santos to acquire a 50% interest in PPL 287. 

Three exploration wells are planned in the permits, with the first well, Kupio-1 in PPL 261, expected to spud in early this month. 

Santos vice-president Asia Pacific Martyn Eames said the farm-ins were an exciting development for Santos in Papua New Guinea and a return to exploration in an area in which Santos has been involved since 1988. 

 “The Foreland area of PNG is prospective for both gas and oil and Santos looks forward to working with our new partners Talisman and Mitsubishi in the exploration programme,” Eames said. 

The deals are subject to certain conditions on obtaining Government approval. 

Under PPL 261, Talisman (operator) has 30% equity; Santos, 30% and Mitsubishi 40%.

On PPL 426, Santos will have 70% equity while Santos 50%.

Under PPL 287, Talisman and Santos will have 50-50 equity.