Oil Search Ltd

ICCC Gives Nod For Oil Search Merger

ICCC Commissioner and CEO, Paulus Ain said after taking into consideration Santos’ authorization application and submissions including comments from relevant stakeholders and available market information. ICCC notes that the acquisition of Oil Search by Santos will not seriously harm competition in any markets in PNG. 

Santos Seeks Approval For Merger

The ICCC has formally announced this to key stakeholders, the public and participants in the oil and gas industry, that it has received an Authorization Application from Santos Ltd, an Australian energy company.

The Authorization Application is consistent with section 82 of the ICCC Act 2002, for business, mergers and acquisition. This process allows a business to seek approval from the ICCC before proceeding with any business mergers and acquisitions that would otherwise raise serious concerns.

Santos-Oil Search Ltd Merger Likely

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.”

All OSL staff accounted for

In a statement, the firm said: “Due to damage sustained to a number of our camp sites and to ensure the ongoing safety and welfare of our staff, the Company has commenced demobilising all non-essential personnel to Port Moresby.

“This exercise will continue over the next few days.”

OSL to operate Alaska ahead of FID

The proposed acquisition is made on the basis that the Pikka Unit and adjacent acreage and 37.5 percent in the Horseshoe Block contains a discovered resource of 500 million barrels, compared to an estimate of 1.2 billion barrels by the existing joint venture partners.

The proposed acquisition is worth US$400 million (K1.2 billion), with the option for OSL to double its interests by mid-2019 for an additional US$450 million (K1.4 billion).

Meanwhile, OSL takes over operatorship in the first quarter of 2018 and will undertake active appraisal.

OSL 2017 revenue higher

The result follows record production for the company and improving global oil prices.

The company recorded a full year production of 30.31 million barrels of oil equivalent (mmboe) for 2017 after a fourth quarter total production of 7.59 mmboe.

Additionally, a 5 percent increase in global prices saw the company surpass estimates.

Oil Search managing director, Peter Botten, said the company finished 2017 strongly, with full year production at the upper end of their guidance range and an all-time record for the company.

OSL confirms gas presence at P’nyang South 2

In its exploration and appraisal drilling update, published on the Port Moresby Stock Exchange, Oil Search says this confirms its pre-drill prognosis carried out last year.

The well is located in Western Province at Petroleum Retention License (PRL) 3/Application Petroleum Development License (APDL) 13.

Oil Search says the objective of P’nyang South 2 is to migrate proven and probable (2C) gas resource volumes to the proven (1C) category as well as appraise 2C resource upside potential identified in the south-eastern part of the field.

Polye hails Gov't for selling OSL shares

He said it is a step in the right direction but more economic recovery work is needed.

“As a citizen and national leader of Papua New Guinea, I feel it is appropriate for me to comment on the recent news report by Reuters regarding the PNG Government’s intention to sell the State’s stake in Oilsearch”, said Polye.

26yo woman responsible for operation of oil wells

Wakia, from Wapenamanda District in the Enga Province, is one of many citizens that have developed and furthered their education with support from Oil Search. 

She joined the company in 2012 as a graduate petroleum engineer in the Graduate Development Program. She held the positions of development petroleum engineer and well integrity engineer before being appointed to her current role as production engineer, overseeing the Kutubu Central Processing Facility (CPF).