By Ross Kelly
SYDNEY--Total SA (TOT) has made its first foray into Papua New
Guinea, agreeing to purchase stakes ranging from 35-50% in five
exploration blocks in a deal that could precede construction of
another giant natural gas-export project in the impoverished
nation.
Australia's Oil Search Ltd. (OSH.AU) said Tuesday it sold half
of its interests in the assets to the French oil company in
exchange for the reimbursement of past licence costs and a partial
carry through on drilling costs. It did not put a specific price
tag on the deal.
Oil Search is currently a partner in the US$15.7 billion
ExxonMobil Corp.-led (XOM) PNG LNG natural gas project in Papua New
Guinea, targeted to ship its first cargos of liquefied natural gas
to Asian customers in 2014.
Jean-Marie Guillermou, Senior Vice President of Total
Exploration & Production, Asia-Pacific said the deal is in line
with the company's strategy of strengthening its presence in the
Asia Pacific region, particularly in the natural gas and LNG
sectors.
Write to Ross Kelly at ross.kelly@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires