Who ever said the pipeline is dead and burried are saddly mistaken as Santos in talks with Exxon to re join the project, why miss out on a great project.
Oil Search shares up amid rumours Sydney, 13 August, OGT—Oil Search shares increased almost 7% yesterday due to rumours that Santos was reconsidering a tilt at its former partner in the A$6 billlion Papua New Guinea to Queensland gas pipeline project.
Oil Search owns a 37% interest in the long-delayed pipeline project.
Oil Search shares jumped A$0.05 or 6.9% to A$0.77 on a turnover of 6.9 million shares, a long way off its high of A$1.47 which was reached in late January.
Some analysts say Santos is betting that the PNG pipeline will eventually go ahead, despite the pipeline consortium's failure to win the Townsville power station gas supply contract.
A Santos spokesman said the firm had "no comment" on the takeover rumour but confirmed it was still in talks to rejoin the pipeline project.
In January Oil and Gas TODAY reported that Santos quit the project after a dispute over the commercial terms of the partnership.
Santos later considered a A$642 million cash bid for the 51% PNG Government-backed Orogen Minerals.
However, the PNG Government rejected the offer and Oil Search went in a A$1.4 billion merger with Orogen in April.
Santos said it was still in talks with the pipeline's operator, Exxon Mobil, about rejoining the project.
Santos indirectly owns around 12.5% of the project through its interest in the Hides gasfield in PNG, which will be a major source of supply.
Mark.....
OSH Price at posting:
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