Talisman Energy and Mitsubishi Corporation (MC) have reached agreement on MC's entry into nine of Talisman's licences in Papua New Guinea's onshore Western Province, via a farmout from Talisman effective January 1, 2012, subject to approvals by government and joint venture partners. The deal is valued at approximately US$280 million and will be paid in the form of a capital carry. Following the farmout, Talisman and MC licensed equity positions will average 40% and 20%, respectively, in these nine licences.

Talisman and MC have agreed to work together closely to aggregate natural gas in the Western Province of PNG with a view to potential LNG export of approximately 3 million metric tonnes per annum. "Talisman is delighted to have MC as a strategic partner in our onshore licences in PNG," said Paul Blakeley, Executive Vice-President, International Operations East. "MC brings extensive experience in LNG development and marketing and I am confident they will be a key success factor in helping us unlock the value of our Papua New Guinea assets."

Tags: Mitsubishi Corporation, Talisman Energy