The board of InterOil has accepted that the ExxonMobil bid is ‘superior’ to the bid by Oil Search. But the deal will not be completely finalised until a proposed shareholders’ meeting in September. And there are some legal obstacles that have to be dealt with.
ExxonMobil PNG may have trumped Oil Search’s bid for InterOil Corporation, but Papua New Guinea’s largest company will still benefit from the US major’s US$2.3 billion bid, according to Oil Search’s Managing Director Peter Botten. He tells Business Advantage PNG that the bid by ExxonMobil delivers most of the benefits of Oil Search’s take over offer and pushes the ‘cooperation agenda’.
Next week, the Papua New Guinea-focused gas explorer InterOil may well have a new owner, after its shareholders consider rival offers from Oil Search and ExxonMobil. Business Advantage PNG considers the implications for PNG’s second gas project, Papua LNG and the wider economy.
Despite short-term weaknesses, oil and gold prices are up over the year so far. Gas prices, although only half their 2014 peak, may be finding a floor while coffee prices are strong. Meanwhile, domestic equities have moved sideways, while some Australian miners have surged. Business Advantage PNG’s monthly overview of commodity and financial markets.
John Momis told to ‘carefully consider’ equity offer from Rio Tinto, ExxonMobil declines to confirm or deny InterOil bid, and Supreme Court orders parliamentary vote on no confidence motion. Your weekly digest of the latest business news.
Oil Search, Papua New Guinea’s biggest company and largest non-government employer, looks set to consolidate its position as a major player in the Asia Pacific oil and gas market with its $US2.2 billion purchase of InterOil. Chief Executive of Oil Search, Peter Botten, says it will allow the company to be ‘hugely influential in the further development of our world class PNG LNG and Papua LNG assets.’
With the PNG LNG project now in production, all eyes are on Papua New Guinea’s next likely gas project: Papua LNG. InterOil Corporation has been with the project, based on the Elk-Antelope gas fields in Gulf Province, since its inception. Chief Executive Officer Michael Hession tells Business Advantage PNG why the project is still promising, even in a time of low global gas prices.
Visas on arrival to be available for Australian tourists, Morobe Governor to suspend trading licences for shops using street vendors, and corruption cases net K25 million for government coffers. Your weekly digest of the latest business news.
Treasurer Patrick Pruaitch denies Budget blowout, Kumul Petroleum to evaluate methanol plant and small rise in inbound tourism. Your weekly digest of the latest business news.
A new Executive Vice-President and a new board member at InterOil, and Steamships appoints a new Non-Executive Director.