Santos has signed an agreement to farm-in for a 20 per cent interest in a Papua New Guinea exploration licence from both ExxonMobil and Oil Search.
The Petroleum Prospecting Licence (PPL) 402 is around 40km northwest of the Hides gas field in PNG, and covers 510 square kilometres.
The farm-in comes after Santos took part in the recently drilled Muruk 1 exploration well, which is targeting the Toro Formation – a gas bearing site in the nearby Hides and Juha fields. It is expected to have gas resources of approximately 2 trillion cubic feet.
Santos managing director and CEO Kevin Gallagher said the company had a long and successful working relationship with both ExxonMobil and Oil Search.
“Today’s agreement demonstrates our commitment to growing our position in Papua New Guinea and working with our long-term partners to explore and develop,” he said.
Last month Santos announced the sale of its Victorian gas assets to Cooper Energy for $82 million.