INTEROIL Corp has signed a deal with Japan’s Mitsui Group for a condensate stripping plant to be built and located in Gulf province.
Prime Minister Sir Michael Somare announced this yesterday in a statement following the signing.
Sir Michael, as trustee shareholder of Petromin PNG Holdings Ltd performed his last official duty for last year by witnessing the key terms agreement (KTA) between the two companies for a US$450 million (K1.216 billion) lending facility anticipated to cover 100% of the remaining costs of the processing and sale of condensate from the Elk and Antelope fields.
Petromin, a 100% State entity, is State’s nominee to participate in the project for State’s 22.5% equity.
Sir Michael said the KTA outlined the relationship between InterOil Corp, Petromin Ltd and the Mitsui Group.
The non-binding KTA demonstrated Japanese support for Petromin, the natural resources holding company of PNG, and InterOil’s upstream development.
“This KTA signing follows a memorandum of understanding (MOU) that was completed several months ago and sets the stage for a binding agreement to be signed upon further negotiations,” he said.
Mitsui representatives were present for the world record breaking flow test at the Antelope-2 well on Dec 1 and the signing of InterOil’s LNG project agreement on Dec 23.
Mitsui Group is one of the largest corporate conglomerates in Japan and one of the largest publicly traded companies in the world.
Mitsui Group has interests in LNG and petrochemicals, among other industries, and is recognised as one of the largest traders in naphtha and high quality petrochemical products.
Sir Michael said: “We are pleased to have support from Japan in furthering the development of our natural resources and look forward to a long and prosperous relationship with Mitsui Group.”