18 Sep 2007

PNG gas attracts Chinese interests

1:06 pm on 18 September 2007

Shares in Oil Search have risen as takeover talks again swirled about the company, which is attracting interest because of high value its liquefied natural gas project in Papua New Guinea.

The oil and gas explorer says it has not received any formal approaches about a takeover.

But reports in Hong Kong say a Chinese joint venture is considering a bid for the group of about five billion US dollars.

Oil Search's managing director, Peter Botten, says in the past year a wide range of parties had shown considerable interest in participating in the company's PNG gas development.

The South China Morning Post newspaper reports that CNPC Exploration, a joint venture company between China National Petroleum Corp and its subsidiary PetroChina, was considering a bid but did not name any sources.