Santos-Oil Search Ltd Merger Likely

Minister for Petroleum, Kerenga Kua announced that a merger between Santos and Oil Search Ltd. is a possibility and said that the State is monitoring the proceedings of this merger.

He said: “Oil Search as we know, we’ve had our agreements and disagreements with Oil Search Ltd but nobody can deny the fact that Oil Search Ltd has played a huge role during the period that it’s been around.”

Minister Kua added: “We have to give credit, recognize and respect them for the positive things that they have already done.”

He said it is likely that in a merger with Santos, Oil Search Ltd would be lost.

“In a merger with Santos, Oil Search in its current form will be lost and subsumed into another new entity and that will have its consequences.”

Minister Kua said Prime Marape has instructed fellow ministers to monitor the process and consequences of the merger.

“Because the Oil Search business is based in Papua New Guinea, the Prime Minister has emphasized that Papua New Guinea’s national interest must be factored in into the merger arrangements.”

Marysila Kellerton