O’Neill welcomes Oil firms deal

Prime Minister, Peter O’Neill has welcomed the announcement that the boards of Oil Search and InterOil have agreed that Oil Search is to acquire 100% of InterOil.

He said the deal will deliver tangible benefits for Papua New Guinea.

O’Neill also highlighted the benefit of the execution of a MoU between Oil Search and Total for a back-to-back sale of Oil Search’s interest acquired to Total following the completion of the InterOil acquisition.

“This acquisition will provide cost savings and efficiencies for our nation’s greatest growth opportunities, which will directly benefit the people of Papua New Guinea,” he said.

“A combined Oil Search-InterOil entity creates a Papua New Guinea oil and gas company of regional significance.

“As a shareholder of this company, the Papua New Guinea Government will benefit from its increased influence and growth opportunities.

“Co-operation between our two large LNG projects, the expansion of the PNG LNG Project and the development of Papua LNG, is in the best interests of our nation.”

O’Neill said these arrangements present a pathway to collaboration and possible integration of the projects, in which both Oil Search and the Government would hold influential stakes.

“The MoU between Total and Oil Search will further see both companies increase their interest in Papua LNG. 

“This will carry an additional commitment from these companies to develop and commercialise this project in very timely manner, expediting the inflow of revenue.”

Author: 
Press statement