Osaka Gas Buys Into PNG Gas Fields

Osaka Gas has said that it has agreed to buy part of licences in Papua New Guinea (PNG) currently held by Horizon Oil to develop condensate and natural gas resources.

The Japanese firm will acquire stake in three licenses held by Horizon oil in the PNG. Osaka Gas will pay $204 million for a 40 percent stake in these three licenses, including $74 million in cash on completion, a further $130 million in cash upon FID for an LNG project, plus potential production payments where threshold condensate production is exceeded.

Horizon Oil has been engaged in the project to commercialize condensate and natural gas towards 2015. 

With acquisition of the interest in the licences, Osaka Gas plans to participate in exploration activities with Horizon Oil and its joint venture partners, the Japanese company said. 

Osaka Gas also intends to conduct studies to examine opportunities for developing an LNG project in the country with them.

The decision of Osaka Gas to participate in the project has been made as part of its long-term business vision ‘Field of Dreams 2020’ in which the company intends to broaden its scope of activities along the energy value chain in international energy markets, Osaka Gas said.