Australian oil and gas company Santos has signed an agreement to farm-in for a 20% interest in Petroleum Prospecting Licence (PPL) 402 located in Papua New Guinea.
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The 20% interest will be purchased from Oil Search and ExxonMobil.
Detailed terms of the agreement were not divulged.
PPL 402 is situated nearly 40km from the Hides gas field and production facilities. Located within prospective thrust and fold belt, it covers an area of 510km².
Santos recently participated in the spudding of the Muruk 1 exploration well, following which the farm-in was announced.
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By GlobalDataThe Muruk 1 well drilling targeted the Toro Formation, a gas bearing entity within the nearby Hides and Juha fields.
The Toro formation is expected to have gas resources of nearly two trillion cubic feet (tcf) at an estimated depth of approximately 3,450m.
Santos managing director and chief executive officer Kevin Gallagher stated that the company has a long and successful association with both firms, Oil Search and ExxonMobil.
Gallagher added: “Today’s agreement demonstrates our commitment to growing our position in Papua New Guinea and working with our long-term partners to explore and develop.”
The agreement is subject to customary approvals and regulatory permissions.
After the farm-in, participants of the PPL 402 will be affiliates of Santos (20%), affiliates of ExxonMobil (42.5%) and Oil Search (37.5%), the project's operator.
Image: Location map for PPL 402. Photo: Courtesy of Santos.
