PNG wants bigger share of ExxonMobil’s PNG LNG

PNG wants bigger share of ExxonMobil’s PNG LNG

The government of Papua New Guinea (PNG) is pushing for a bigger shareholding of the ExxonMobil-led PNG LNG export project. The latest move was triggered by the proposed merger of Santos (ASX:STO) and Oil Search (ASX:OSH), both of which hold stakes in PNG LNG. If the merger is successful,Santos will own a 42.5% share of the liquefied natural gas (LNG) project, more than ExxonMobil (NYSE:XOM), and will most likely sell down its interest.

PNG, which needs to give permission for the takeover to proceed, wants first right of refusal on any potential sell down.

“All things considered, the state would like to pick a portion of whatever Santos will make available in their rebalancing,” PNG Petroleum Minister Kerenga Kua told the Australian newspaper.