Half of the acquisition price has already been paid while the remaining 20 million kina will be paid over the next four years.

Eda owns a 20.5% stake in PDL 5, which along with the neighbouring PDL 2, contains the producing Moran oil field.

Prime Minister Sir Michael Somare said the transfer was in line with his government's intention to have Petromin hold all mining and petroleum assets owned by the government while the MRDC would continue to hold and manage landowner and provincial government assets.

"It is my hope that Petromin will use the Eda Oil asset to build the foundations to achieve the objectives of the government on behalf of the people of Papua New Guinea who are its collective shareholders," Somare said.

He added that Petromin would add value to the country's mining and petroleum resources by "maximising PNG ownership and revenue gains through transparent and fair commercial practices".