AGL has already signalled its intentions to exit the PNG LNG project to pursue opportunities in the more familiar Australian electricity industry.
In a presentation last month Oil Search managing director Peter Botten said his company has a pre-emptive right to match any offers for AGL's 3.6% stake in the project, which could cost $US549.92 million (K1.49 billion), according to Merrill Lynch.
Santos acting CEO David Knox told journalists at the APPEA Conference today that he would not comment on whether his company would seek to take up some or all of AGL's PNG LNG equity.
AGL managing director Michael Fraser had told the Australian Associated Press earlier last month that the LNG project was too much of a departure from what it was when AGL originally became involved: a project to pipe gas from PNG to Australia.
In 2006 Oil Search sold a 10% stake of the LNG project to AGL for a total acquisition cost of around $US427 million, including interests in gas and oil reserves, production and processing infrastructure.
