28 Jan 2017

Exxon and Oil Search let go of a PNG petroleum licence

10:21 am on 28 January 2017

Oil and gas companies Oil Search and ExxonMobil have surrendered one of their petroleum prospective licenses, or PPLs, in Papua New Guinea.

PNG Industry news reports that the pair paid US$15 million for the remote licence in 2012, and had offered further payments and royalties based on success.

However, the difficulties associated with exploration in the Highlands, the recent dry wells at Strickland and other factors have reduced the attractiveness of the block, known as PPL 277.

As partners in PNG's major LNG Project, the two companies already have rights to various energy resources in the Highlands region, including the all important Hides gas fields just west of PPL 277.