It is thought that around mid-2019 Repsol SA possibly entered into a Sales Purchase Agreement (SPA) to divest its entire Papua New Guinea portfolio. The signing of the agreement was followed by a period of exclusivity, which ended in September 2019. The SPA progression could depend on financier and ministerial securities. The Minister for Petroleum will need to provide the ministerial securities to show the government's support for the development of the Stanley field, located in PDL 10 and remove the cancellation notice assigned to the licence. It's understood that the Minister has already shown his support to the field development and has encouraged the purchaser to continue with the agreement. In order to clear the licence of the cancellation notice, the Minister will require clearance from the Department of Petroleum.  Repsol again packaged up its entire PNG portfolio in early-2019 as it looks to exit the country. Repsol acquired its PNG portfolio in 2015 through the purchase of Talisman Energy. With the assets not laying in Repsolâs core focus, it has been looking to exit the country. Repsol has already been successful in reducing its exploration licences and applications in PNG, including PRL 38 which covered the 900 Bcf, offshore, Pandora field. The remaining assets are now thought to form the basis for the sales agreement - however, it is not exactly known which assets will remain if the sale goes ahead as expiring exploration and retention licences may be allowed to lapse to reduce the purchase costs. In early-December 2019, the pre-emptive rights options for the current joint venture partners was available. The outcome could be known by end-December 2019 / Q1 2020.   Repsol currently holds interest through four local, 100% owned, subsidiary companies. Net 2C resources in PNG total around 1.5 Tcf gas and 25 MMb condensate (285 MMboe combined) across a range of assets with joint venture partners: Horizon Oil, Kina Petroleum, Kumul Petroleum, Oil Search, Osaka Gas, P3 Global Energy and Santos. Gross 2C resources in the permits are in the order of 3 Tcf gas with 65 MMb condensate across late Jurassic to Early Cretaceous clastic reservoirs.  Repsol had entered into a sales agreement in 2018 with Balang International Pte Ltd. Balang, a subsidiary company of China Changcheng Natural Gas PowerÂ Co, had agreed to purchase all shares in Repsolâs local entities, subject to conditions, which were expected to be completed by Q4 2018. However, ongoing issues relating to PDL 10 and the Stanley field delayed the transaction, which likely heavily contributed to the deal collapse. The offer was withdrawn in early-2019.
Repsol possibly entered into a Sales Purchase Agreement (SPA) to divest its entire Papua New Guinea portfolio.  