InterOil Corp., a publicly traded oil and gas company, has engaged US PR support as it faces competing acquisition bids from ExxonMobil and France’s Total SA.
Advertisement
In a statement released to the ASX, Oil Search’s managing director Peter Botten said he did not believe it was in the best interests of the company’s shareholders to submit an increased offer. ( International Olympic Committee ) that it does not intend to submit a revised offer for InterOil under the Arrangement Agreement between Oil Search and InterOil dated 20 May 2016.
Oil Search has declined to raise its bid for Papua New Guinea explorer InterOil.
All four companies are involved in the Papua New Guinea gas industry.
Still, Exxon’s XOM, -0.57% all-stock offer for InterOil – estimated to be worth $2.5 billion – highlighted the potential value that would be created by cooperation between two LNG projects, he said.
Total, operator of the Elk-Antelope fields, said late on Wednesday it was committed to cooperating with the PNG LNG project to maximize the value of the gas.
ExxonMobil earlier this week outlined a scrip-based offer for InterOil, comprising of $US45 a share plus a payment of 90 U.S. cents per million cubic feet equivalent (mcfe) for resources of more than 6.2 trillion cubic feet in the Elk-Antelope gas field.
Oil Search shares in Sydney rose as much as 3 percent to A$7.55 and were trading at A$7.535 at 10:51 a.m. local time.
The majors are targeting Papua New Guinea for growth as the quality of its gas, low costs and proximity to Asia’s big liquefied natural gas (LNG) consumers make it one of the most attractive places to develop projects following a collapse in oil and gas prices.
Elk-Antelope fields are 340 kilometers (211 miles) away from the proposed site of the LNG plant near the capital, Port Moresby, less than half the distance for the resources feeding the PNG LNG project, according to an InterOil presentation in January.
Oil Search’s main interest in InterOil was to expand co-operation between the two rival LNG projects in PNG.
Advertisement
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone.
