Esso PNG Exploration, a subsidiary of ExxonMobil Corporation, and Oil Search (OSH) has inked a deal with New Guinea Energy (NGE) to acquire interest in petroleum prospecting licence 277 in Papua New Guinea for $15 million.
As per the deal, Esso and OSH will each hold a 50% interest in PPL 277, which is currently held by Kingsbury, an NGE subsidiary.
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The deal is contingent on receipt of the next extension of the production license and other necessary government approvals.
NGE will also receive $20m if a petroleum development licence is granted and will receive a royalty on revenues between $48m and $312m, if commercial production of petroleum begins.
Esso and OSH will undertake drilling of Trapia-1 during the first half of 2012, marking the commencement of the first exploration activity in PPL 277.
Trapia is located within PRL 11 close to the PNG LNG infrastructure and east of the Hides and Angore fields.
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