March 26:
French major Total and US-listed InterOil have redone a Papua New Guinea gas deal thwarted last month by Oil Search.
Under the new deal, Total will pay InterOil $US400 million for a 40 per cent stake in the Elk and Antelope fields, leaving 35.5 per cent to InterOil.
The structure of the deal will mean Oil Search, which acquired 23 per cent of the fields last month, has no pre-emptive rights and could make it harder Oil Search and its partner Exxon Mobil to use the gas fields to expand their PNG LNG project.
Elk and Antelope, which may contain up to nine trillion cubic feet of gas, or enough for a two-train LNG project, are a major prize because their gas has a simple, cost-effective way to market through expansion of the nearby $US19bn PNG LNG plant owned by Exxon, Oil Search and Santos.
InterOil is run by former Woodside executive Michael Hession.
Source: www.businessspectator.com.au/news/2014/3/26/resources-and-energy/total-interoil-ink-png-gas-deal?
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