Oil Search Expands Papua New Guinea Portfolio

Oil Search has agreed farm-in terms in four new exploration licences – PPL 276, PPL 338, PPL 339 and PPL 312 – in Papua New Guinea.

PPL 276, located west of the Pandora and Pasca gas fields, is currently leased to Rockwell Energy. Oil Search will secure 30% of the licence equity in exchange for funding an extension of the current 3D seismic study of high graded areas in the licence.

In the PPL 338 and PPL 339 licences, which are leased to Dabajodi International Energy and located north of the Gulf of Papua, Oil Search will get a 30% equity for funding a 2D seismic survey to begin in early 2011.

Oil Search will have an option to increase its equity to 70% in exchange for a partial well carry.

The firm will also secure a 30% interest in PPL 312, which is located in the eastern section of the Uramu gas field.

With the acquisitions Oil Search plans to optimise its licence holdings where there is potential for material gas accumulations to underwrite future gas commercialisation.