International Petroleum Investment Co (IPIC) and the Papua New Guinea government (PNG government), through its nominee, Independent Public Business Corp (IPBC), are pleased to announce that they have signed an agreement under which, subject to certain conditions, IPIC will acquire IPBC's 17.6% interest in ASX-listed Oil Search Limited (Oil Search).
The acquisition is structured by way of a five year exchangeable bond (Bond) for A$1.68bn.
This strategic investment provides IPIC with material exposure to a significant near-term LNG project in Asia Pacific, the PNG LNG project (PNG LNG), operated by ExxonMobil.
H.E. Khadem Al Qubaisi, Managing director of IPIC, said:
'IPIC recognises the increasing strategic importance of LNG in the evolving energy landscape. IPIC is excited to have the opportunity to partner with Oil Search and at the same time further diversify the IPIC investment portfolio into Asia Pacific.'
Oil Search operates all of the producing oil and gas fields in Papua New Guinea (PNG) and has a 34% interest in the PNG LNG Project.
The PNG LNG Project is currently undertaking front end engineering design, securing LNG sales and project financing.
The preliminary schedule indicates a final investment decision in late 2009 with a target of first LNG cargo in 2013 to 2014.
IPIC is wholly owned by the government of the Emirate of Abu Dhabi.
Its mandate is to invest in the hydrocarbon sector outside the Emirate of Abu Dhabi.
IPIC has become one of the leading companies in the field of petroleum and energy investment since its inception in 1984.
IPIC holds equity stakes in Hyundai Oilbank in Korea, Gulf Energy Maritime in Dubai, CEPSA in Spain, Borealis & OMV in Austria, Oman Polypropylene in the Sultanate of Oman, PARCO Refinery in Pakistan, SUMED Co in Egypt, Energia De Portugal in Portugal and COSMO Oil in Japan.
