Santos signals their plan for expansion by signing a binding letter of intent (LOI) to acquire a 14.3% interest in Petroleum Retention License 3 (PRL 3).
This acquisition will include the P’nyang field in Papua New Guinea, which holds about 4.4 trillion ft3 of natural gas.
The letter signed letter of intent shows that all parties have agreed that Santos will acquire a 14.3% interest (pre-government back-in) from the existing PRL 3 stakeholders. Santos is expected to pay $187 million, with $120 of it due upon the final sale which is expected in June 2019. The remaining $67 million will be paid based on the receipt of a production development license and a decision on an additional train at the PNG liquification site.
