• Wednesday, 16 May, 2012

Mitsubishi in $280m PNG farm-in

New deal: Japan's Mitsubishi picks up onshore stakes in Papua New Guinea

Talisman Energy

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Bill Lehane , Bill Lehane , Bill Lehane , Bill Lehane

 22 February 2012 15:03 GMT

Canada’s Talisman Energy has sold stakes in nine onshore licences in Papua New Guinea to Japan’s Mitsubishi in a $280 million farmout.

The deal, to be paid in the form of a capital carry, will give Mitsubishi an average of 20% interest in the nine Western Province properties, and leave Calgary-based Talisman with an average interest of 40%.

The deal, effective 1 January, is subject to government and partner approval, including Australia's Horizon Oil, which holds a 50% stake in petroleum retention licence 4 and a 45% stake in PRL 21.

The deal will also cover PRLs 8 and 28, and petroleum prospecting licences 235, 239, 262,268 and 269.

The players are seeking to develop the licences into a potential liquefied natural gas exportation of around 3 million metric tonnes a year.

Talisman launched the stake sale late last year, appointing Sydney-based advisory RFC Corporate Finance to find an investor.

Listed in New York and Toronto, Talisman Energy is a diversified exploration company with principal operations in North America, the North Sea and Southeast Asia.

Mitsubishi Corporation is a global integrated business that has expanded to natural resource development in recent years from its traditional trading operations in a wide range of industries spanning 500 subidiaries in 80 countries.

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