Santos said it has signed an agreement to farm-in for a 20% interest in a licence in Papua New Guinea.
The company will acquire the interest from both Oil Search and ExxonMobil.
The PPL 402 licence is 40km northwest of the Hides gas field and production facilities and within the highly prospective thrust and fold belt trend.
The licence covers an area of 510 km2.
Santos said the farm-in results in Santos’ participation in the recently spudded Muruk 1 exploration well.
Chief Executive Kevin Gallagher said: “Today’s agreement demonstrates our commitment to growing our position in Papua New Guinea and working with our long-term partners to explore and develop.”
Completion is subject to customary regulatory approvals. The terms of the agreement are confidential.