IOC, the saga continues:
PNG govt allies with Oil Search
From POST COURIER/PACNEWS
News
Mon 03 Mar 2014
Topics Papua New GuineaShare this article Email Facebook Twitter
PORT MORESBY, PNG ----- The Papua New Guinea Government has made a strategic move to keep its alliance with Oil Search Limited after the Abu Dhabi based IPIC (International Petroleum Investment Company) refused to sell back OSL shares.
Prime Minister Peter O’Neill announced last Friday that the Government and Oil Search Limited have reached an agreement under which the Government will subscribe for 149.39 million shares in Oil Search Limited at A$8.20 (K17) per share.
O’Neill said the agreement was subject to the execution of final financing documentation with International Banker UBS, and the receipt of final State approvals, which are expected on or before 6 March.
Settlement of the subscription is expected to take place by mid-March.
“We note that Oil Search has announced the acquisition of a 22.835% gross interest in PRL-15, which contains the Elk-Antelope discovery, through the acquisition of the Pac LNG Group Companies.
“The acquisition provides Oil Search with a strategic interest in the largest undeveloped gas resource in PNG, with significant exploration upside. The Government looks forward to working with Oil Search, its joint venture partners and other resource owners to develop all PNG hydrocarbon resources in the earliest practical timeframe,” he said.
The Prime Minister said the Government noted the March 2014 maturity of the Exchangeable Bonds issued in 2009 by the Independent Public Business Corporation of Papua New Guinea (IPBC) to IPIC.
The funds raised from the IPIC issue enabled the Government to fund its share of the construction of the PNG LNG Project, which is scheduled to begin commercial production this year.
He said IPBC had received a mandatory exchange notice from IPIC in relation to the IPIC EB and accordingly, the exchange of the relevant Oil Search shares currently held by IPBC will occur as prescribed under the IPIC EB deed.
“We wanted to buy back the shares held by IPIC. That is not possible now. But what we have agreed to is a very good outcome for the Government and the people of PNG. We will maintain our alliance with a strategic partner, Oil Search, at a price far less than the exchange price of A$8.55”. |
