InterOil-Oil Search tie-up

Business, Normal

The National, Monday March 3rd, 2014

 INTEROIL has welcomed Oil Search Ltd as a partner in the Elk-Antelope fields —  the largest undeveloped gas resource in the country.

Chief executive Dr Michael Hession said: “Oil Search is a logical partner for us in developing these large gas resources. 

“The company has decades of experience in PNG and is nearing production from PNG LNG.”

“It is exceptionally rewarding to know that someone as experienced as Oil Search shares our view of the worth of this resource. This not only validates the value of this world class asset in Elk-Antelope but acknowledges the upside in this asset and the surrounding acreage.”

“This partnership will enable us to tap these energy resources more quickly and cost-effectively and that translates into real financial benefits for Papua New Guinea and the shareholders of the companies involved.

 “We welcome Oil Search into our development of Elk-Antelope with Total and look forward to an even closer cooperation with the people and Government of Papua New Guinea in the years ahead. 

“This project and the partnership have the clear backing of the Government, ensuring we have a strong and stable foundation to deliver on this outstanding long-term project.”

Oil Search has agreed to acquire a 22.835% interest in PRL15 from Pacific LNG Group Companies for a consideration of US$900 million, plus further contingent payments.

The new arrangement created a stable and sustainable partnership to connect the significant PRL 15 gas deposit to the growing demand in Asia. 

InterOil owned 75.6114% of PRL15 and was in agreement to sell an interest to Total SA.

The final ownership structure would be agreed with the joint venture participants with InterOil maintaining a material interest in PRL15. 

The remaining 1.5536% is held by the IPI Holders (a small group of independent investors).