Oil Search Buys Interest in PNG Licences

Oil Search has acquired a stake in oil and gas licences in Papua New Guinea, it said May 29. The company said that its subsidiary, Oil Search PNG has entered into arrangements regarding the acquisition of a 30% interest in each of petroleum prospecting licences (PPLs) 474, 475, 476, 477 and PRL 39 from US major ExxonMobil.

ExxonMobil acquired interests in these licences when it completed its purchase of InterOil Corporation early 2017. The licences, which are in the Eastern Foldbelt in the onshore Papuan Gulf Basin, adjacent to the Elk-Antelope fields in petroleum retention license (PRL) 15, contain the Triceratops, Bobcat and Raptor discoveries.

As part of the proposed farm-in arrangements, Oil Search will undertake a seismic acquisition programme over the licences over the remainder of 2017 and into early 2018, on behalf of the operator, ExxonMobil.

“The onshore Gulf licences are in close proximity to the world class Elk-Antelope fields in PRL 15, which are expected to underpin the Papua LNG development, providing a potential route for future commercialisation. In addition to the existing gas discoveries, we have identified a number of additional leads and prospects on the acreage,” Oil Search’s managing director, Peter Botten, said.

As a result of this farm-in and associated seismic programmes within the onshore Papuan Gulf Basin licences, additional drilling and testing of the Muruk well, partially offset by re-phasing of other exploration activities, the company’s 2017 exploration and appraisal budget has been marginally increased, from $250-300mn to $270-320mn. 

Shardul Sharma