InterOil Corporation has sold its downstream businesses, which are the oil refinery and petroleum companies, to Singapore-based Puma Energy Group for USD $525.6 million.
This includes adjustMen’s for cash and working capital.
InterOil’s downstream businesses include the Napanapa refinery in Port Moresby.
Prime Minister Peter O&rsquO’Neill has welcomed the purchase of InterOil’s Papua New Guinea refinery and fuels marketing businesses by Puma Energy, worth USD $525.6 million which amounts to over K1.5 billion.
Mr. O&rsquO’Neill welcomed the investment, saying Puma Energy’s investment in Papua New Guinea, is more than a capital investment and that the company will bring with it expertise which will deliver further benefits to the economy.
The Singapore-based company, Puma Energy, distributes petroleum products in more than 40 countries, employs more than 6,000 people and operates nearly 1,700 service stations, over 60 terminals and a refinery.
It has regional hubs in Australia, South Africa, South America and Europe.
Puma will retain its 700 plus workers already employed by InterOil in its current refinery and downstream businesses.
The government welcomed the news for these workers and their families.
InterOil Corporation announced the sale of companies on Monday.
The corporation said assets involved are Papua New Guinea oil refinery and petroleum products distribution businesses, which includes adjustMen’s for cash and working capital.
InterOil’s downstream businesses include the Napa Napa refinery in Port Moresby which processes about 28,000 barrels a day, 52 service stations and 30 fuel depots, terminals and aviation sites.
InterOil Chief Operating Officer, Jon Ozturgut said the sale followed an unsolicited approach from Puma Energy and a strategic review by InterOil of options for the best allocation of capital.
Mr. Ozturgut said for the past 10 years, the refinery and distribution businesses have contributed to InterOil’s business model, and Papua New Guinea’s development.
He said the upstream and LNG business has become core to the company’s growth, and that the transaction immediately provides additional capital to fund their upstream and LNG business.
InterOil believes Puma Energy is the right company to take over, invest in and grow the downstream and refining businesses for the long-term benefit of Papua New Guinea.
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