InterOil secures US$75m loan for exploration

 BY SHEILA MALKEN

INTEROIL has finalised a US$75 million (K171 million) secured loan facility from Westpac Bank and Bank South Pacific to accelerate its exploration and drilling programme.  

The company said it would build on its success by seeking additional exploration partners. 

Corporate development and government relations executive vice-president Keli Taureka said: “All of InterOil’s businesses and assets are in PNG and we remain fully aligned with PNG’s ambitions to develop its natural resources. 

“InterOil makes a significant contribution to PNG as a major employer and provider of fuel and we value our strong relations with the government and local communities”.

The company also said negotiation with ExxonMobil Papua New Guinea Ltd (EMPNG), a subsidiary of ExxonMobil relating to the development of petroleum retention licence 15, was ongoing despite the lapse of an exclusivity arrangement. 

InterOil would continue to work with EMPNG to accelerate the monetisation of its gas resources to benefit stakeholders, including PNG. 

Borrowings under the facility would be used for exploration and drilling activities with US$37.5 million (K85.6 million) funding to start immediately and a further US$37.5 million upon the execution of an agreement in relation to monetization of the Elk and Antelope resource. 

The principal repayment will be made on the first resource payment or 12 months from the first drawdown.