Upon conversion of the bond, IPIC will acquire PNG’s entire 17.6% equity stake in Oil Search Limited (“Oil Search”) which is ASX listed, thus becoming the largest shareholder in Oil Search.
This strategic investment will ensure IPIC’s participation in an LNG mega-project, the PNG LNG project, operated by exxonmobil, in which Oil Search has around a 30% stake. This LNG project is anticipated to be transformational for the PNG economy, and a major driver of the Asia Pacific energy market of the future.
IPIC’s Managing Director, HE Khadem Al Qubaisi, said:
“IPIC is particularly proud to have executed this transaction, succeeding where a number of oil majors tried and failed. This is only the second acquisition in which IPIC has used a convertible instrument, and we envisage wider use of such mechanisms in future IPIC investments. We are excited about working with Oil Search, which IPIC considers to be a dynamic and innovative partner; we are very pleased to be participating in the PNG LNG project, which promises to deliver 30 years of clean energy supply to the growing Asia Pacific market; and we are happy to have forged constructive links with the PNG government, which we hope will provide a platform for further Abu Dhabi investments in PNG.”
I am pleased to acknowledge the constructive roles played by the Hon. Arthur Somare, PNG Minister for Public Enterprises and Development; Mr. Glenn Blake CBE, Managing Director of IPBC; and Mr. Peter Botten CBE, the Managing Director of Oil Search, in helping this landmark deal become reality”.
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