ExxonMobil, Oil Search buy PNG permit

DREW DOUGLAS

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Andrew Hobbs

 07 March 2012 03:29 GMT

ExxonMobil and Australian company Oil Search have jointly acquired a Papua New Guinea exploration permit from New Guinea Energy for $15 million.

The deal, which is subject to PNG government approval and specific licence conditions, will see the two companies pay $7.5 million each for the 50% stakes in Petroleum Prospecting Licence 277.

New Guinea Energy will be entitled to an additional $20 million – half each coming from ExxonMobil and Oil Search – if a production development licence is granted over the field.

NGE would also be entitled to royalties over any commercial production that occurs – potentially worth between $48 million and $312 million depending on the size of the deposits and liquefied…

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