12-06-2013, 12:08 PM
DJ Total, InterOil Near Deal to Develop Papua New Guinea Gas-Sources
7:39 PM (GMT-05:00) Eastern Time (US & Canada) Dec 05, 2013
By David Winning and Ross Kelly
SYDNEY--France's Total SA (TOT) and InterOil Corp. (IOC) are in advanced talks over a deal to develop two of Papua New Guinea's largest undeveloped natural gas fields, people familiar with the matter said Friday.
Houston-based InterOil has long sought new investment in the Elk and Antelope gas discoveries in Papua New Guinea, an impoverished Southeast Asian nation that is emerging as an important liquefied natural gas export hub.
In May, InterOil began exclusive talks with ExxonMobil Corp. (XOM) about the latter investing in the fields, but weren't able to complete a deal. InterOil then began talking to other parties, and earlier this month said it expected to announce a deal by the end of this year.
Total has emerged as the frontrunner in recent days for the InterOil assets in a three-way bid battle that also included Royal Dutch Shell PLC (RDSB) and Exxon, the people said.