Oil Search will be the operator for Petroleum Development Licence 2 (Kutubu), Pipeline Licence 2, Moran Unit, Petroleum Development Licence 4 (Gobe Main), SE Gobe Unit, Pipeline Licence 3, and Petroleum Prospecting Licence 219.

Following transition of the operatorships, Oil Search will be the operator of all the oil producing projects in PNG as well as the Hides Gas to Electricity Project, which company has operated since 1998.

Esso unit, Esso Highlands, has been elected operator of Retention Licences PRL2 and PRL3, which contain the Juha and P'nyang discoveries respectively.

Importantly, this demonstrates a continuing commitment to PNG by ExxonMobil and is important for the future optimal development of some of PNG's key gas resources.

Under the terms of the relevant joint venture agreements, ChevronTexaco will remain operator for a 180-day period until Oil Search formally assumes operatorship of the licences in October 2003.

The new role will consolidate Oil Search's already strong presence in PNG while supplying a useful cash-flow for future exploration.

Since the Oil Search Strategic Review undertaken in 2002, which highlighted the importance of Oil Search gaining greater influence over management of its core assets, the company has been actively preparing to be well positioned to assume operatorship of its oil assets should ChevronTexaco resign.

Peter Botten, Oil Search's Managing Director said: "The assumption of operatorship of all PNG's producing oil projects will provide the opportunity for Oil Search, together with our joint venture partners, to maximise the operating performance of these assets and drive future levels of activity.