Shareholders of Singapore-based InterOil Corp. have overwhelmingly voted to approve ExxonMobil Corp.’s $2.5-billion bid for the company at a special meeting on Sept. 19. More than 80% of shareholders voted in favor of the deal.
InterOil Chairman Chris Finlayson thanked shareholders for their support for what he called a value-creating transaction.
Finlayson said the deal will deliver shareholders a material and immediate premium, a potential direct cash payment based on the Elk-Antelope gas-condensate field resource certification in Papua New Guinea, and exposure to future value through ownership of ExxonMobil shares.
The transaction is now expected to be completed by the end of this month.
InterOil intends to seek a final order with respect to the plan of arrangement at a hearing in the Supreme Court of Yukon scheduled for Sept. 27.
InterOil’s major asset is Elk-Antelope field in the eastern highlands of Papua New Guinea along with surrounding exploration permits covering about 16,000 sq km.
The gas resources are the potential feedstock for the proposed Papua LNG project, which is operated by Total SA. ExxonMobil now joins Total and its fellow joint venturer Oil Search Ltd. in appraising and planning the development that calls for a pipeline from the fields to an LNG plant at Caution Bay about 20 km from Port Moresby.
The plant is notionally next door to the existing ExxonMobil-operated Papua-LNG plant and there will be synergies with the two projects.
ExxonMobil and Oil Search are participants in both projects.