InterOil gets US$350m

Business, Normal

The National, Monday July 22nd, 2013

 INTEROIL has secured a US$350 million (K786.5 million) capital arrangement with the banking group BNP Paribas to support operations of the Napa Napa refinery outside of Port Moresby.

The oil refinery is part of InterOil’s extensive list of assets in PNG including petroleum licences covering about 3.9 million acres.

The Canada-based petroleum company says the financing would assist with the ongoing operational activities of the refinery, which has experienced consistent growth over the past five years

It says funding was subject to Bank of Papua New Guinea approval on the granting of PNG security over refinery assets, and other standard closing conditions.

According to its website, US$270 million (K606.7 million)  from the US$350 million (K786.5 million) will be a syndicated secured working capital facility with the support of five banking partners, namely: BNP, Australia and New Zealand Banking Group Ltd (ANZ), Natixis, Intesa Sanpaolo (Intesa), and Bank South Pacific Ltd (BSP).

In addition, BNP will also be providing an US$80 million (K179 million) bilateral non-recourse discounting facility. 

Chief financial officer Collin Visaggio: “InterOil is pleased to have the support and confidence of longstanding banking partners. 

“We are delighted to have strengthened our banking relationship with BNP who have led our existing working capital facility since 2004, and broadening our relationships with existing financiers like ANZ, BSP, and new syndicate partners Natixis and Intesa. 

“The financing will assist with the ongoing activities of the refinery, which has experienced consistent growth over the past 5 years.”

Meanwhile, InterOil was told by the Gulf provincial government that it wanted to have the gas processing plant for the Gulf LNG project established in the province.

The provincial government said it was  keen on its “no pipeline” policy.