Abu Dhabi's IPIC to buy stake in Oil Search

Abu Dhabi: Abu Dhabi-based International Petroleum Investment Company (IPIC) said on Tuesday it plans to acquire a 17.6 per cent stake in Oil Search Limited, a company listed on the Australian Securities Exchange.

IPIC and the Papua New Guinea (PNG) government - through its nominee, Independent Public Business Corporation - signed an agreement under which, subject to certain conditions, the acquisition will be completed, a statement said.

"The acquisition is structured by way of a five-year exchangeable bond for A$1.68 billion (Dh3.92 billion)," IPIC said.

The statement added that the proposed strategic investment provides IPIC with "material exposure to a significant near-term [liquefied natural gas (LNG)] project in the Asia Pacific, the PNG LNG project operated by ExxonMobil."

"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 in Asia Pacific," the statement quoted IPIC Managing Director Khadem Al Qubaisi as saying.

Oil Search operates all of the producing oil and gas fields in Papua New Guinea and has a 34 per cent interest in the PNG LNG Project. The PNG LNG Project is currently undertaking front end engineering design, securing LNG sales and project financing.

IPIC, whose mandate is to invest in the hydrocarbon sector, is wholly owned by the Abu Dhabi government.