Exxon Not to Buy Stake in PNG Gas Asset

Esso PNG Robin Limited (Esso), a subsidiary of Exxon Mobil Corp, has informed New Guinea Energy that it will not proceed with the Sale Agreement pertaining to Petroleum Prospecting Licence (PPL) 269 in Papua New Guinea.

The company has told NGE that it has been unable to reach alignment on a number of confidential commercial matters (which have not been disclosed to NGE) with the other joint venturers in PPL 269, NGE said in a statement.

In order to continue with its strategy of monetising gas assets to focus on exploration for oil in Papua New Guinea, NGE intends to re-engage with other parties who have approached NGE in connection with the possible acquisition of NGE’s interest in PPL 269.

In July, New Guinea Energy (NGE) had informed about the agreement to sell 50% participating interest in PPL 269 to Esso for a total consideration of $40 million cash. Last week NGE announced that sale deadline has been postponed.

PPL 269 occupies an area of 8,995 km2 in the Western Province straddling both foreland and foldbelt structural terranes.

This licence has 5 drillable prospects and adjacent licences contain major wet gas discoveries including Hides (9.6 TCF GIIP), Juha (1.5 TCF GIIP) and Pnyang (1.2 TCF GIIP).