Oil Search (ASX:OSH) advised that its 29 per cent owned PNG LNG Project, signed a sale and purchase agreement with Hong Kong’s PetroChina International.
The deal will see the PNG LNG supply LNG from July 2018.
It involves supplying 0.45 million tonnes of liquifed natural gas (LNG) per year, over a three-year term.
On behalf of the project, ExxonMobil is negotiating with a number of other parties for potentially more LNG supply agreements.
Santos (ASX:STO) also advised the market of the same agreement, as they have a 13.5 per cent stake in the project.
Oil Search (ASX:OSH) share are trading 1.69 per cent higher at $8.71, while Santos (ASX:STO) trades 1.65 per cent higher to $6.16.