Oil Search signs farm-in agreements for onshore acreage in PNG

Oil Search (PNG) has signed farm-in agreements to acquire 30% interest in each of five licences belonging to the affiliates of ExxonMobil in the Eastern Foldbelt in the onshore Papuan Gulf Basin, Papua New Guinea (PNG).

The licences PPLs 474, 475, 476, 477 and PRL 39 are located adjacent to the Elk-Antelope fields in PRL 15 and contain the Triceratops, Bobcat and Raptor discoveries.

Under the agreements, Oil Search will carry out a seismic acquisition programme over the licences into early next year, on behalf of the operator, ExxonMobil.

The company noted that the proposed acquisition, along with its existing acreage position, will provide an exploration portfolio with multiple high potential play types close to the infrastructure.

Oil Search managing director Peter Botten said: “Prior to our proposed bid for InterOil in 2016, Oil Search identified the onshore Papuan Gulf Basin as an area with not only discovered gas resources, but also significant further gas potential.

“The proposed farm-in to these licences materially enhances Oil Search’s exploration portfolio in this highly prospective area.

“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, Oil Search has identified additional leads and prospects on the acreage.

Completion of the acquisition of the licence interests is subject to due diligence, execution of binding agreements, conditions precedent and regulatory approvals.

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Image: Oil Search's asset in Papua New Guinea. Photo: courtesy of Oil Search.