By Meriba Tulo – EMTV News, Port Moresby
In what could signal the formation of PNG’s first regional oil and gas champion, Oil Search has announced its proposal to acquire 100 per cent of InterOil – in a deal worth approximately K6.5 billion (US$2.2 billion)
Both Oil Search and InterOil released a joint statement this morning, informing the market of this ambitious plan.
Both boards of Oil Search and InterOil had given unanimous recommendations for this transaction – with InterOil urging its shareholders to approve this deal at its next AGM, scheduled for June 14.
According to Oil Search, “the deals will consolidate the company’s position as PNG’s premier oil and gas company, with a high quality, low-cost production base, strong balance sheet, excellent growth opportunities and leading in country relationships. Importantly, the acquisition also delivers on two of Oil Search’s key strategic objectives: to commercialise the company’s Highlands and Gulf gas resources and to pursue high-value acquisition opportunities in PNG, particularly in the highly-prospective Gulf Province.”
Depending on approval from InterOil shareholders, both companies aim to have this transaction completed by Q3 this year.