Darn, you beat me to it! 
InterOil And Total Close Elk-Antelope Transaction
- Revised sales and purchase agreement closes
- Total acquires 40.1% gross interest and brings its global expertise to developing PNG's second LNG project
-- InterOil receives US$401 million and maintains material 35.5% gross interest in one of Asia's largest gas fields
- Joint venturers share objectives with PNG Government to monetise gas as quickly as possible
PORT MORESBY, Papua New Guinea and SINGAPORE, March 25, 2014 /PRNewswire/ -- InterOil Corporation [IOC] and Total SA [FP][TOT] have closed a revised sales and purchase agreement covering the Elk-Antelope gas field in Petroleum Retention Licence 15 in Papua New Guinea.
Under the revised agreement signed today, Total has acquired - through the purchase of all shares in a wholly owned InterOil subsidiary - a gross 40.1% interest in PRL 15.
InterOil retains 35.5% of the licence and immediately receives US$401 million for closing the transaction, and will receive US$73 million on a final investment decision for an Elk-Antelope LNG project, and US$65 million on the first LNG cargo. InterOil will also receive payments for certified gas volumes following appraisal of Elk-Antelope.
All fixed and variable payments that were agreed on December 6, 2013 continue to apply pro-rated according to the new equity split, including those for exploration, appraisal and resource certification.
InterOil Chief Executive Officer Dr Michael Hession said the agreement enabled InterOil to maintain a material interest in PRL 15, which covers one of Asia's largest gas discoveries of the past 20 years.
"The agreement clears the way for co-operative 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 Papua New Guinea provides an ideal opportunity to grow our business in the Asia-Pacific region," Mr Guillermou said. "We have a strong relationship with our joint venturers, strong support from the Papua New Guinea Government, and we now look forward to leading development of the LNG project," he added.Other joint venturers in PRL 15 are Oil Search Limited [OSH], 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).
Interests in PRL 15
Entity Gross interests Gross interests post- Net working interests post-
transaction transaction(1)
pre-transaction
--- ---------------
InterOil 75.6 35.5 27.5
-------- ---- ---- ----
Total SA 0 40.1 31.1
-------- --- ---- ----
Oil Search 22.8 22.8 17.7
---------- ---- ---- ----
Indirect participating interests 1.6 1.6 1.2
------------------------- --- --- ---
PNG Government and landholders(1) 0 0 22.5
------------------------- --- --- ----
Total (%) 100.0 100.0 100.0
-------- ----- ----- -----
(1)Assumes the Papua New
Guinea Government and
landholders in PRL15
exercise their rights under
the PNG Oil and Gas Act to
take their respective 20.5%
and 2% interest when a
petroleum development
licence is issued.