Total and InterOil Corp. have closed a revised sales and purchase agreement covering the Elk-Antelope gas field in Petroleum Retention License 15 in Papua New Guinea. Under the revised agreement signed March 26, Total has acquired – through the purchase of all shares in a wholly owned InterOil subsidiary – a gross 40.1% interest in PRL 15.
InterOil retains 35.5% of the license and immediately receives US$401 million for closing the transaction, and will receive US$73 million on a final investment decision for an Elk-Antelope LNG project, and US$65 million on the first LNG cargo. InterOil will also receive payments for certified gas volumes following appraisal of Elk-Antelope. All fixed and variable payments that were agreed on Dec. 6, 2013, continue to apply pro-rated according to the new equity split, including those for exploration, appraisal and resource certification.
Dr. Michael Hession, InterOil CEO, commented that the agreement enabled InterOil to maintain a material interest in PRL 15, which covers one of Asia’s largest gas discoveries of the past 20 years. “The agreement clears the way for cooperative joint venturers, who all share the government’s wish to monetize Elk-Antelope as quickly as possible, through the fast-growing Asian market,” he said. “InterOil now has a solid partnership where Total can use its considerable LNG expertise to develop Papua New Guinea’s second LNG project.”