Oil and gas company Oil Search has entered into agreements with Gini Energy Limited, owned by CNOOC Limited, to acquire a 40% interest in each of PPL 374 and PPL 375 blocks located offshore Papua New Guinea. The company will team up with ExxonMobil which also bought a stake.
These licences are located approximately 150 kilometers south of Port Moresby in the deep water section of the Gulf of Papua, PNG, and cover a combined area of 24,936 km2, with water depths ranging between 1,000 and 2,500 metres.
ExxonMobil also acquire a 40% interest in each licence while Gini will retain a 20% interest in each licence. Subject to conditions precedent, operatorship of both licences will transfer from Gini to ExxonMobil.
Commenting on the farm-ins, Oil Search’s 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 gas leads and prospects already delineated in these licences. We are delighted to be partnering with ExxonMobil, which has significant experience in exploration and production in deep water, and we also welcome the opportunity to work with CNOOC Limited for the first time.
Entering these licences is consistent with the Company’s strategy to focus on areas that have the potential to support the Company’s expanding LNG portfolio.”
The completion of the farm-in agreements and Oil Search’s acquisition of the licence interests is subject to conditions precedent, including regulatory approvals.