OISHF - PNG demands bigger stake in PNG LNG project - The Australian

Papua New Guinea Prime Minister James Marape has told Santos (OTCPK:STOSF) that the government wants an extra stake in the Exxon Mobil-led (NYSE:XOM) PNG LNG project if Santos proceeds with the proposed takeover of Oil Search (OTCPK:OISHF), The Australian reports. Marape reportedly met with Santos CEO Kevin Gallagher and Oil Search CEO Peter Fredericson in Port Moresby earlier this week. Under the proposed deal, Santos would acquire Oil Search's holding in the $19B PNG LNG project, making it the biggest single shareholder. Credit Suisse analyst Saul Kavonic tells Reuters that negotiations likely are just beginning, and that "the government will extract something here, but ultimately it will be modest and shouldn't prevent the deal from proceeding." Exxon shares have been trending upward since reporting preliminary Q3 estimates indicating higher natural gas prices could lift earnings by $500M-900M over Q2.

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PNG demands bigger stake in PNG LNG project - The Australian