Total acquires stake in InterOil's Papua New Guinea LNG assets for USD3.6 billion
French petroleum company Total SA agreed to buy a stake in InterOil Corp.'s assets in Papua New Guinea as part of a plan to build a liquified natural gas (LNG) project. The deal is expected to be valued at up to USD3.6 billion.
According to a report by Bloomberg, Total will acquire 61.3% of a license that includes the Elk and Antelope gas fields in Papua New Guinea. The French oil firm will also get the right to invest in further exploration blocks. Australian InterOil initially valued the deal at USD1.5 billion to USD3.6 billion.
InterOil has been searching for an international partner to help fund the Papua New Guinea natural gas project since 2009. Earlier this year, it said that it had started discussions with Exxon Mobil Corp. to develop the fields, the report said.
Total will operate the proposed LNG project, which will depend on the gas resources being certified and engineering and design work. InterOil will keep 30% of the LNG development, Bloomberg said.