ExxonMobil has agreed to acquire Papua New Guinea-based gas exploration firm InterOil for $2.5 billion after outbidding another suitor backed by France’s Total. The deal will give ExxonMobil access to the vast Elk-Antelope gas field and exploration licenses covering 16,000 square kilometers. The Elk-Antelope field is the anchor field for the proposed Papua LNG project. ExxonMobil already operates the PNG LNG project in Papua New Guinea.
Total and Oil Search Ltd. offered to buy InterOil in May for $2.2 billion. The firms opted not to counter ExxonMobil’s offer. Oil Search — which has interests in both Papua LNG and PNG LNG — said it would benefit from an ExxonMobil-InterOil deal due to increased synergies between the two LNG projects.
The transaction is expected to close in September.
SEE ALSO: Sabine Pass LNG to be shut down for maintenance in September
