Santos buys PNG permits

Santos has lifted its exploration exposure in PNG with interest in two permits and negotiations continuing on a third.

Santos (STO) has bought interests in two prospective exploration permits in Papua New Guinea. 

In a statement, the oil and gas producer said it has agreed with Canadian group Talisman Energy to acquire 30% interests in two permits.

Terms of the agreements are confidential and Talisman will remain the permit operator.

The two groups are in exclusive discussions for Santos to take a 50% interest in a third permit.

Three exploration wells are planned in the permits and drilling for the first is expected to start in early September.

Mitsubishi also has a 40% interest in one of the permits.

The agreements are subject to obtaining PNG government approval.

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