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InterOil Corporation Message Board

  • rob_cos rob_cos Apr 12, 2013 9:50 AM Flag

    IOC-Shell poised to sign partnership agreement

    OT - this article saying IOC close to deal with Shell driving IOC higher today...


    Canadian company InterOil is poised to sign a partnership agreement with a major company to join the proposed Gulf liquefied natural gas project in Papua New Guinea, with Anglo-Dutch supermajor Shell tipped as the likely party.

    It is understood the two sides are finalising the terms and conditions of a partnership agreement and this is expected to be achieved soon, said sources.

    Once completed, the agreement will mark the conclusion of a protracted process, and will satisfy the demands of the PNG government which insisted that an LNG major be involved in the project for it to receive the state’s final approval to proceed. The terms of the potential deal are not yet known, but sources in the capital Port Moresby said word had been filtering through for several weeks that InterOil’s advisors had recommended a party, which is Shell.

    The Anglo-Dutch supermajor said it had no comment to make on the issue.

    The new partner will become the project operator and earn a major equity stake in exchange for undisclosed compensation to InterOil, said sources.

    The new entrant would have to be absolutely confident about the gas resource that will underpin the project, namely InterOil’s Elk-Antelope fields, and it is understood that various companies have been studying reservoir data carefully these past months.

    Late last year, Shell had sounded lukewarm about the InterOil process.

    The company acknowledged at the time it had been in discussions with the Canadian company “intermittently over the last year or two”, but had not made any formal proposal “given that we were unable to access all available technical data”.

    At the beginning of last month, InterOil said it had received “several bids” to be a partner in the Gulf LNG project, and its advisors would assess these offers during March 2013.

    Continued in Reply to this as yahoo limits size

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42.00-0.58(-1.36%)2:09 PMEDT