Oil Search has signed an agreement to sell a 20 per cent interest in Petroleum Prospecting Licence (PPL) in Papua New Guinea to Barracuda, a subsidiary of Santos.
PPL 402 is located in the Highlands Province in PNG. The licence covers an area of 510 km2, 40 km northwest of the Hides gas production facilities.
The deal will see Barracuda participating in the recently spudded Muruk 1 well, which is targeting a mean gas resource of approximately 2 tcf in Cretaceous sands of the Toro Formation, at a depth of approximately 3,450 metres. This target reservoir is hydrocarbon bearing in the nearby Hides and Juha gas fields.
Commenting on the farm-in, Oil Search managing director, Peter Botten, said: “This transaction is consistent with the Company’s strategic approach of working with selected partners to balance risk while holding appropriate participation levels in opportunities that have the potential to add material gas resources to the firm's portfolio.”
Oil Search will remain as the operator and will retain a 37.5 per cent interest. While ExxonMobil’s subsidiary, Esso PNG Wren, will retain a 42.5 per cent interest.