news in the region

hey all for those that havent heard about it
http://www.upstreamonline.com/live/article199637.ece

Talisman it seems has acquired Papua Petroleum (this was also mentioned in horizon oil's agm slide pg 34. The PPL's surround some of NGE's and it may be that Sassol now does not have a good foot hold in the region and hence there is no one else that NGE can negotiate with where the pipeline is concerned. for those that cannot read the article, I will copy below. The negotiations is my own quick passing thought. PPL 265 Is the region that springs to mind as potentially suffering should TLM want what is best for there shareholders.

cheers

Papua Petroleum eyes PNG offers

Wire services

Papua Petroleum is considering offers and farm-in proposals for its assets in Papua New Guinea, its managing director said today, as merger and acquisition activity in the gas-rich nation intensifies.

Closely held Papua Petroleum has a 49% stake in four natural gas exploration licenses in the Western corridor of Papua New Guinea - PPLs 285, 286, 287 and 288 - after selling a majority stake to a unit of South Africa's Sasol last year.

"My board is considering offers as well as some farm-in deals" from a number of parties, and will review them in the next week or so, the Dow Jones reported Richard Schroder, Papua Petroleum's managing director, as saying.

Schroder declined to name the parties that have expressed an interest in Papua Petroleum's assets, which cover a combined 37,000 square kilometers in PNG.

However, industry officials expect Canada's Talisman Energy to be among the bidders, as it has clinched a series of deals this year to expand its footprint in Papua New Guinea.

Talisman acquired Rift Oil in a $177 million deal in June, spurring speculation the Calgary-based company is aiming to secure enough gas to justify building a new liquefied natural gas terminal in PNG.

Talisman followed this deal with separate farm-in agreements with New Guinea Energy and Horizon Oil in July and September, respectively.

With a gas resource estimated at more than 20 trillion cubic feet, Papua New Guinea has become a hotspot for global energy companies seeking to develop projects in close proximity to booming Asian energy demand.

Two proposals for LNG export terminals have already been unveiled in PNG, with ExxonMobil and partners set to make a final investment decision on the $15 billion PNG LNG project on 8 December.

Preliminary agreements for gas sales from PNG LNG are already in place with customers in China, Japan and Taiwan, and are due to be converted to binding deals by the time a final investment decision is made.

In addition to the ExxonMobil-led venture, PNG's prime minister has approved an LNG project proposed by Liquid Niugini Gas, a consortium of companies including Canada's InterOil.

Talisman may have enough gas for a third LNG terminal if it chooses that option. The company hasn't disclosed the exact reserve size of its Pandora gas discovery, located about 175 kilometres offshore in the Gulf of Papua, but says it is material.
Monday, 23 November, 2009, 02:56 GMT | last updated: Monday, 23 November, 2009, 09:58 GMT

cheers