AGL flagged its intentions to sell its stake in the liquefied natural gas project more than two months ago, but the company may have stronger offers now that project operator ExxonMobil has the long-awaited gas agreement with the Papua New Guinea Government.

Outside of AGL's 3.6%, which it intends to sell by December, ExxonMobil holds 41.6% in the JV, Oil Search has 34.1%, Santos 17.7%, Nippon Oil 1.8% and the remaining 1.2% is held by landowner interests.

Oil Search investor relations manager Ann Diamant told PNN's sister publication PNGIndustryNews.net there had been a lot of interest in the sale given the progress with PNG LNG gaining a gas agreement.

She said Oil Search would look into the sale but the company already had a large stake of the project and there was the possibility outside parties could bump up the price considerably.

Santos has similar large commitments at PNG LNG and Gladstone LNG. But ExxonMobil and Nippon Oil are likely to be able to buy AGL's stake.

AGL's decision to exit PNG LNG stems from a company decision to refocus on opportunities in its more familiar Australian electricity industry.

The $US10 billion-plus PNG LNG project will source gas from the Hides, Angore and Juha fields as well as associated gas from the operating Kutubu, Agogo, Gobe and Moran oil fields in the Southern Highlands and Western Provinces.

The gas will be treated at a plant at Hides before being piped to the liquefaction plant, expected to start production in 2013.