Papua

Exploration Plan

New US Oil Interest In Papua

Three American oil companies an mnced in November they had quired petroleum exploration rights an 8,740 square mile area along e southern coast of Papua.

MERADA Petroleum Corpora * tion of Australia Ltd., Continen- Oil Company of Australia Ltd., d Marathon Petroleum, Australia d., said the exploration rights in ; area had been taken over from Australian group which would, wever, hold “an over-riding royalty erest”.

In the Australian group are Papuan •inaipi Petroleum Company Ltd., sociated Australian Oilfields NL, i Associated Freney Oil Fields NL.

Transfer of the title involves per t No. 22 which extends for )ut 125 miles along the southern ist of Papua, west of Port Moresby 3 the Purari River delta.

No Commercial Production ‘The associated group has carried exploratory work in the permit a for some years but to date no nmercial production has resulted,” company statement said.

The American companies will un take further exploration of the mit, bringing many years of ex ience in petroleum discovery and elopment to this challenging a.” he Papua-New Guinea Assistant ninistrator for Economic Affairs, F. C. Henderson, said in Port resby that entry of the American ipanies was a most encouraging elopment which would give im is to oil exploration and consider ' extend the Territory’s prospects the discovery and development of □mmercial petroleum industry. imerada, Continental and Mara i describe themselves as “sub aries of prominent American cor ations active throughout the Id in petroleum exploration, pro tion, and marketing,” with recent :ess in the discovery and develop it of major oil reserves in Libya.

AP-Reuter.