According to Reuters, takeover interest in Australia’s Santos, a company that not long ago was drowning in debt, has been shining a spotlight on an up-and-coming hotspot for oil and gas producers: Papua New Guinea.
The South Pacific nation, one of the world’s least explored countries but known for corruption and violence, has become a key source of growth for two of the world’s biggest energy companies – ExxonMobil Corp and Total SA – looking to expand their LNG businesses.
With oil LCOc1 and gas LNG-AS prices recovering this year and LNG demand especially in China skyrocketing, investors have been seeing out new, profitable investments and Papua New Guinea has landed on their radar.
As a result, US-based Harbour Energy has reportedly been eyeing a bid for Santos Ltd, Australia’s no. 2 independent gas producer, which has a 13.5% stake in ExxonMobil’s Papua New Guinea LNG project (PNG LNG).
“As an acquisition, the prize jewels in Santos are its stakes in PNG LNG,” said Saul Kavonic of energy consultancy Wood Mackenzie.
Investors are attracted by Papua New Guinea’s high-yielding gas fields, with the gas rich in liquids that generate extra revenue, and easily exported to North Asia’s booming markets as LNG on tankers.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/17112017/bid-for-santos-puts-spotlight-on-papua-new-guineas-lng-assets/