Santos will acquire interest in the petroleum licence containing the P’nyang natural gas field in Papua New Guinea.
Following the company’s US$187 million (AU$270 million) purchase, Exxon will have a 36.86 per cent interest, Oil Search will have 36.86 per cent and Merlin will slide to 11.96 per cent.
P’nyang has a certified gross 2C contingent resource of approximately 124 billion m³ of gas.
Santos’ buy-in will allow the development of the field to leverage the advantages of infrastructure that exists through the PNG LNG Project.
The deal is conditional on a decision by the PNG LNG partners to proceed with engineering and design work on their expansion, which would include a new LNG train at the project, as well as two new trains at the related Papua LNG Project, operated by French company Total.
Santos Managing Director and CEO Kevin Gallagher said the deal was a significant one for LNG in PNG.
“The arrangements we announce today mark an important step towards the proposed expansion at the PNG LNG plant via a 2.7 mtpa third LNG train fed by existing Project resources and P’nyang,” he said.
“We are very pleased to execute the letter of intent with the PRL 3 participants who are also affiliates of Santos’ partners in the PNG LNG Project.
“We look forward to working with the PNG Government, our partners and landowners to make expansion at PNG LNG a reality.”
Santos has a 13.5 per cent interest in the PNG LNG Project.
For more information visit the Santos website.
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