Aborted InterOil bid did not affect Oil Search: Lee

Business

OIL Search chairman Rick Lee (pictured) says its engagement with InterOil on a proposal to buy its shares did not  affect efficiency and productivity when InterOil went for a higher bidder – ExxonMobil.
Oil Search in May announced an agreed takeover offer of InterOil Corporation. A memorandum of understanding with Total SA was also signed, whereby Oil Search would sell part of the InterOil licence interests acquired to Total.
In July, InterOil notified Oil Search that it intended to change its recommendation in respect of the Oil Search proposal and enter into an arrangement agreement with Exxon Mobil Corporation.
Lee said the Oil Search board decided not to resubmit a revised bid for InterOil in light of the terms offered and “our view that entry of ExxonMobil into the Petroleum Retention Licence  (PRL) 15 joint venture will increase the likelihood of downstream integration of the Papua LNG project and potential PNG LNG project expansion”. “Consequently, the bid for InterOil and the associated Total MOU were terminated in July,” Lee said.
“We at the board decided not to match ExxonMobil with our rights with a similar position adopted by Total.
“So in many ways there was a great deal of disappointment in the Oil Search camp to surrender the position of what we have some control over the integration (PNG LNG and Papua LNG).”
Oil Search was incorporated in PNG in 1929.
It  has a 29 per cent interest in the PNG LNG project.