* Oil Search ends talks to sell 3.5 pct of PNG LNG project
* To raise equity (Adds details)
SYDNEY, Oct 19 (Reuters) - Australian-listed oil and gas
producer Oil Search Ltd
Oil Search halted trading in its shares, pending a full announcement on termination of the deal, and said it would raise equity by selling shares to institutional investors.
Oil Search had been in advanced talks to finalise the sale
to Abu Dhabi government-owned International Petroleum
Investment Co. Last year, AGL Energy Ltd
Analysts had been expecting Oil Search to achieve a better valuation than the AGL sale, given the significant progress the project had made since then.
Oil Search, which is partnering with ExxonMobil Corp
This year, Oil Search also made its first foray into coal-seam gas in Papua New Guinea in the hope of finding more reserves for its LNG business.
Oil Search shares last traded at A$6.75 each, giving it a market value of A$7.7 billion.
(Reporting by Denny Thomas; Editing by Mark Bendeich)