Santos
(ASX:STO) has signed a contract to farm-in for a 20% stake in a Papua New Guinea petroleum prospecting licence, PPL402.
Santos says the licence covers an area of 510km², and it will acquire the interest from Oil Search and ExxonMobil.
The company also says PPL402 is located around 40 kilometres northwest of the Hides gas field and production facilities.
After the farm-in, the oil and gas companies’ interests will be: Santos (20%), ExxonMobil (42.5%) and Oil Search (37.5%).
Santos posted a net loss of $1.5 billion at 30 June 2016.
