Japanese LNG project developer Inpex said it has sold a 40.1 percent participating interest in Block PDL3 in Papua New Guinea to Kumul Petroleum.
The participating interest is held by Southern Highlands Petroleum in which Inpex holds a 10 percent share.
Inpex acquired shares in the Production Block in 1990 through investing in Southern Highlands, and has taken part in production and operation activities in the SE Gobe Oil Field, which straddles the production block and the adjacent Block PDL4.
SE Gobe Oil Field was unitized in 1998. As oil production declines, the field will completely transition to gas production supplying the ExxonMobil-operated PNG LNG project. Currently, it produces 900 bbl per day and 40 mscf of natural gas.
Oil Search is the operator of the SE Gobe field, markets the oil on behalf of Cue Energy through a marketing agency agreement.
Shareholders in the Block PDL3 are the Australian LNG player Santos, operator with a 15.9 percent stake, Oil Search 36.4 percent and MRDC with a 2 percent stakeholder.
Upon completion of the transaction, Kumul’s shareholding in the block will grow to 45.7 percent.
LNG World News Staff