InterOil, Total ink deal

 INTEROIL and France Total SA have clinched a revised sales and purchase agreement covering the Elk-Antelope gas field in petroleum retention licence 15 (PRL 15) in Gulf.
In a deal signed yesterday, Total has acquired a gross 40.1% interest in PRL 15  through the purchase of all shares in a wholly owned InterOil subsidiary.
InterOil retained 35.5% of the licence and immediately received US$401 million for closing the transaction, and would receive US$73 million (K176 million) on a final investment decision for an Elk-Antelope LNG project and US$65 million (K157 million) on the first LNG cargo.
InterOil would also receive payments for certified gas volumes following appraisal of Elk-Antelope.
All fixed and variable payments that were agreed last December continue to apply pro-rated according to the new equity split, including those for exploration, appraisal and resource certification.
InterOil chief executive Dr Michael Hession said the agreement enabled InterOil to maintain a material interest in PRL 15, which covered one of Asia’s largest gas discoveries of the past 20 years.
He said: “The agreement clears the way for the cooperative joint venturers, who all share the government’s wish to monetise Elk-Antelope as quickly as possible, through the fast-growing Asian market,” Dr Hession said.
“InterOil now has a solid partnership where Total can use its considerable LNG expertise to develop Papua New Guinea’s second LNG project.”
Total exploration and production senior vice-president Asia Pacific Jean-Marie Guillermou said the agreement allowed the joint venture to proceed with confidence.
 “Elk-Antelope is a significant project in Total’s global portfolio and our presence in PNG provides an ideal opportunity to grow our business in the Asia-Pacific region,” Guillermou said.
 “We have a strong relationship with our joint venturers, strong support from the PNG government and we now look forward to leading the development of the LNG project”, he added.
Other joint venturers in PRL 15 are Oil Search Ltd, which has 22.8% (gross) as a result of its acquisition of interests held by Pacific LNG Group Companies and indirect participating interests, which hold 1.6 % (gross).