Under the terms of the deal, Oil Search will increase its equity from 47.5% to 66.2% following the drilling of the NW Moran-1 exploration well.

The transaction will result in Oil Search having an increased equity in the subsequent well, South East Moran-1, which has been recently approved by the Joint Venture to be drilled with Rig 226 following the NW Moran-1 well and will fulfil the year four commitment well.

In relation to the NW Moran prospect area, Oil Search and ExxonMobil subsidiary Ampolex have agreed to preserve Ampolex's interest in any potential discovery in NW Moran. Furthermore, under the agreement, Ampolex has retained an option to participate in a SE Moran discovery.

PPL 219 is located immediately adjacent to the Kutubu, Moran and Gobe oil and gas projects in the Papuan Highlands. Oil Search will participate in at least four exploration wells in PNG this year.