Blair Price
Friday, 26 April 2013
INTEROIL chief executive officer Phil Mulacek has correctedPNGIndustryNews.net on the circumstances of his recent retirement.
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InterOil CEO Phil Mulacek. |
He said he is retiring so he can focus on his private company and allow the new CEO to have running room, while helping from an InterOil director position.
Given the timing of the announcement of Mulacek’s retirement, PNGIndustryNews.net inquired and got confirmation from InterOil chief financial officer Collin Visaggio that this development was part of the underway “process” to sell an Elk-Antelope field operating stake to a strategic LNG partner.
Mulacek has since told PNGIndustryNews.net that this came across poorly and consequently provided more background to his decision.
“I was retiring so that I can focus on my private company after we get the LNG [transaction] closed, and help InterOil as a director and chair certain strategic committees that I enjoy,” Mulacek told PNGIndustryNews.net.
“I recommended a new CEO [for] some months, and we have interviewed to ensure a smooth transition to run the LNG project once it is closed.
“This timing is now, and any new CEO would like upside and input to gain respect by shareholders. If I wait until the transaction is closed, and the stock runs, then he has a flat position while the project is under construction and a selfish outcome that hurts me and everyone.
“As the fourth largest shareholder it would not be in my personal interest to have a harder environment for a CEO replacement, nor do I need to falsely create a situation that is hard to follow and would mean cheap shots by some shareholders. Many really have no idea of the hard work it takes and support that will be required for a new CEO.”
The InterOil founder’s CEO retirement is effective from April 30 and he revealed that Elk-Antelope bidders were aware of his plans, which counters some of speculation since this news emerged.
“In regards to LNG partners, I have worked with the main bidders and each of these has been told by me for some time I will retire,” Mulacek said.
“It was absolutely false to state or imply it was implied by any valid bidder that I retire. In fact the ability to go forward proves the point to the bidders that we are serious, as I announced my retirement, knowing they will all take it 100% seriously. It was absolutely false that any valid bidder would want me out. The respect is there, and I am on the LNG steering board committee and will remain so.”
Mulacek said it had been fun building InterOil, which included its role in Papua New Guinea’s “largest discoveries with over 1.6 billion barrels of oil equivalent in five years” and growing its PNG employment base from two people to more than 1000.
“I have taken the company from a low of 50 cents to $US75 per share over 12 years, found vast gas volumes of hydrocarbons, the largest in PNG, built a refinery and full retail distribution – I have nothing more to prove.
“To be successful on any transition, I respectfully need to leave some room for my replacing CEO, and support the growth so there are no false shadows.”
Mulacek owns about an 8% stake of InterOil.
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