Ipic takes 17.6% stake worth $1bn in Oil Search

Abu Dhabi's International Petroleum Investment Company (Ipic) has purchased a 17.6 per cent stake, worth A$1.68 billion ($1.08bn, Dh3.98bn) in Oil Search Limited, the exploration company said yesterday.

Ipic and the Papua New Guinea government, thr-ough its nominee, Independent Public Business Corporation (IPBC) have signed the agreement with Oil Search Limited, an Ipic statement said.

The acquisition is structured by way of a five-year exchangeable bond issue, the statement added.

"This strategic investment provides Ipic with material exposure to a significant near-term liquefied natural gas project in Asia-Pacific, the Papua New Guinea LNG Project operated by ExxonMobil," the statement said.

Oil Search operates all of the oil and gas producing fields in Papua New Guinea and has a 34 per cent interest in the PNG LNG Project.

The PNG LNG Project is currently undertaking the front-end engineering design, securing liquefied natural gas sales and project financing. The preliminary schedule indicates a final investment decision in late 2009 with a target to supply the first liquefied natural gas cargo sometime between 2013 to 2014.

Ipic currently holds equity stakes in South Korea's Hyundai Oilbank, Gulf Energy Maritime in Dubai, Cepsa in Spain, OMV in Austria, Oman Polypropylene in the Sultanate of Oman, Parco Refinery in Pakistan, Sumed Company in Egypt, Energia De Portugal in Portugal and Cosmo Oil in Japan.