ExxonMobil goes against Oil Search, to give $2.2bn for InterOilStaff Writer | July 18, 2016
ExxonMobil has made a bid worth at least $2.2 billion for InterOil and its stake in a rich Papua New Guinea gasfield, winning the support of its target and topping an offer from Australia's Oil Search.
Acquisition PNG is considered one of the best locations for LNG
Oil Search, which owns a stake in both projects, bid for InterOil in the hopes of tying the two LNG projects together to help cut costs and speed up development of the new gas field.
PNG is considered one of the best locations for LNG projects because of its high quality gas, low costs and proximity to Asia's big LNG consumers.
If Oil Search wins InterOil, Total has agreed to buy part of InterOil's stake in the Elk-Antelope gas field, which would give it a 48 percent stake in the field that will feed its planned project. Elk-Antelope gas could also be used, at least initially, to feed ExxonMobil's PNG LNG project.
Drilling of one more well this year could prove the field holds much more than the at least 6.2 trillion cubic feed (tcf) of gas under current estimates.
Oil Search has at least until July 21 to submit a revised offer and said it was talking to Total about making a higher bid.
InterOil board has determined that the ExxonMobil Offer constitutes a "Superior Proposal." ■