Exxon, Oil Search To Buy 40% Stake In Gulf Of Papua Acreage
Zacks Investment Research | Sep 12, 2016 10:50PM ET
U.S. super major ExxonMobil Corporation (NYSE:XOM) and Oil Search Ltd. recently signed a deal with Gini Energy, a company controlled by China’s Cnooc Ltd. (NYSE:CEO) , to acquire majority interest in two deepwater exploration acreages in the Gulf of Papua.
Under the terms, Oil Search and ExxonMobil will purchase 40% stake each in two exploration licenses from Gini Energy. ExxonMobil will become operator of the licenses, while Gini Energy will retain 20% equity holding.
The two licenses, namely PPL 373 and PPL 375, are situated roughly 150 kilometers south of Port Moresby. They cover a combined 24,936 kilometers, with water depths ranging from 1000 meters to 2500 meters.
According to a comprehensive study of exploration opportunities conducted by Oil Search in 2015 and 2016, offshore Gulf of Papua has been identified as an area with significant gas potential. Hence, Oil Search and ExxonMobil partnered with Gini Energy to acquire stakes in the region and cash in on the opportunities.
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