A $US13-billion ($1.58 billion) deal by Spanish oil major Repsol to buy Canada's Talisman Energy is set to introduce a new player to the petroleum sector in Papua New Guinea, although the Spanish player's long-term commitment to the assets is uncertain.
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The agreed takeover, announced late Monday, appears driven by Repsol's aim to add Talisman's assets in North America, although it also highlighted the Spanish player's Colombian and Norwegian interests, and some assets in south-east Asia.
Talisman's position in PNG, which includes several trillion cubic feet of gas over several fields in the Western Province, has been the subject of speculation for some time. Most recently, Oil Search is understood to have approached Talisman with an offer for the PNG position, but the plunge in global crude prices is thought to have resulted in it reviewing the pricing of the bid.
The deal would also have Repsol take over Talisman's stake in Woodside Petroleum's mature Laminaria and Corallina oil fields in the Timor Sea. Until now Repsol's Australian position is thought to comprise only interests in exploration ventures.
Talisman already sold its interest in the Kitan oil field in Timor-Leste earlier this year to Malaysia's Hibiscus Petroleum.
Repsol agreed to pay $US8.3 billion for Talisman, and take on $US4.7 billion of debt.
