10 Oct 2012

Oil Search shares up 3 per cent on PNG Total deal

11:32 am on 10 October 2012

Shares in oil and gas producer Oil Search rose over three per cent, after it signed five licensing agreements with gas giant Total Exploration and Production to operate in Papua New Guinea.

The deal, which has been in the pipeline for the past six months, also pushed shares in partner Kina Petroleum almost seven per cent higher.

It means Total, and Oil Search will hold equal interests in each of the five licences in the onshore and offshore Gulf of the Papua New Guinea region.

Sydney-based Oil Search, a well-established oil and gas player in PNG says the focus of the transaction was to explore and develop the prospective offshore gulf and eastern forelands area.

Total, Oil Search and Kina Petroleum will share an interest in some of the licences and an offshore drilling program is expected to start at the beginning of next year.