Exxon to sell 14pc interest in gas field
EXXONMOBIL PNG has agreed to sell 14.3 per cent of its interest in the P’nyang gas field in Western to Santos for US$187 million (about K560 million).
This gives the Australian firm a stake in the field that would help feed an expansion of the ExxonMobil’s PNG LNG project.
The farm-in agreement is expected to be completed in the second quarter of the current financial year.
An ExxonMobil PNG spokesperson said: “The P’nyang joint venture has signed a Letter of Intent for Santos Limited to acquire a 14.3 per cent interest in PRL3 in Western.
“The completion of a farm-in agreement is expected in the second quarter of 2019.
“The farm-in further aligns the various joint venture interests across P’nyang and PNG LNG.
“The P’nyang field is located within PRL3, which covers 105,000 acres (425 square kilometres).
“Upon completion of the sale, ExxonMobil affiliates (will) operate the licence with a 36.86 per cent interest in the block.
“Affiliates of Oil Search have a 36.86 per cent interest, JX Nippon 11.96 per cent interest and Santos 14.32 per cent interest, pre PNG Government back in.”
Santos yesterday said the PRL 3 participants proposed to undertake the development of the P’nyang field in coordination with the participants in the PNG LNG Project to leverage the advantages of existing infrastructure.
Santos managing director and chief executive officer Kevin Gallagher said Santos’ strategy in PNG was to work with its partners to align interests, support and participate in backfill and expansion opportunities at PNG LNG.
“The arrangements we announce today (yesterday) mark an important step towards the proposed expansion at the PNG LNG plant via a 2.7 mtpa third LNG train fed by existing Project resources and P’nyang,” he said.
“We are very pleased to execute the letter of intent with the PRL 3 participants who are also affiliates of Santos’ partners in the PNG LNG Project.”