October 08th, 20126:52pmFrench energy major, Total has made an entry into Papua New Guinea LNG space by signing five sale and purchase agreements with Oil Search Limited.. The move could precede construction of another giant natural gas-export project in the nation,
Oil Search and Total will hold equal interests in each of the five licences and will work in partnership to explore and appraise the onshore and offshore Gulf of Papua region. The completion of this transaction will mark the first entry of the French firm into PNG.
While the focus of the transaction is on exploring and developing the prospective offshore Gulf and the eastern forelands area, Oil Search and Total have also agreed to form a strategic partnership to look at other licences in PNG, excluding the Highlands area, Oil Search said in a statement.
“Oil Search will continue as the operator, supplemented by expertise from Total. In the event of exploration and appraisal success that leads to an LNG project, Total would develop and operate the downstream facilities of any development,” Peter Botten, Oil Search’s Managing Director, said.