12-06-2013, 12:21 PM
4users liked this postsusers disliked this posts0Reply
05 Dec 2013 20:19 EST DJ Total, InterOil Agree Deal to Develop Papua New Guinea Gas -- Update
by rob_cos • 30 minutes ago Flag
05 Dec 2013 20:19 EST DJ Total, InterOil Agree Deal to Develop Papua New Guinea Gas – Update
SYDNEY--France's Total SA (TOT) and InterOil Corp. (IOC) have agreed a deal worth up to US$3.6 billion to develop two of Papua New Guinea's largest undeveloped natural gas fields, people familiar with the matter said Friday.
Total will buy a majority stake 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. InterOil will retain a 30% stake in the gas fields.
The final price of the deal depends on the size of the gas reserves at Elk and Antelope, one of the people said. InterOil and Total have agreed to value the deal in a range of US$1.5 billion and US$3.6 billion, with the higher price payable if the reserves are as large as 9 trillion cubic feet of natural gas.
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 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. Less