Overwhelming approval for InterOil takeover

In a statement yesterday, more than 91 per cent of  votes were cast in favor of the proposed transaction yesterday in New York City in the United States.

Previously 80 per cent of shareholders voted to approve the original transaction  at a Special Meeting on September 21, 2016.

A court hearing in which InterOil is seeking a final order with respect to the Amended and Restated Plan of Arrangement is currently scheduled for February 20th 2017.

Exxonmobil to determine Muruk-1 potential

ExxonMobil Exploration Company President, Steve Greelea, said this during their announcement of the discovery recently.

The Muruk-1 well encountered similar high-quality sandstone reservoirs as the main Hides field, which is the main source of the PNG LNG Project.

Sandstone reservoir refers to sandstone that contains petroleum which can be extracted.

The discovery was in line with pre-drill expectations and was safely drilled to 10,630 feet (3,130 meters), and with evaluation underway to determine the size of the discovery.

Sandstone reservoirs discovered near Hides

The Oil & Gas Journal the sandstone reservoirs, similar to those in Hides, were found following drilling of the well to 10, 630 feet.

The Muruk-1 exploration well (PPL 402)  is located north west of the Hides gas field. Hides gas field is the main source of gas for the new Papua New Guinea LNG project

According to ExxonMobil, the well results were in line with predrill estimates, suggesting the Muruk-1’s target Toro formation could contain 2 trillion cubic feet (tcf) of gas

NEC approves call-out for PNGDF in Hela Province

“These problems have the potential to impact on the upcoming election as well as the operation of important projects in the area.

“Cabinet has approved a call-out the PNGDF to support Police to conduct security operations in Hela Province.

“Police will have full powers to ensure law and order and to deal with people who seek to cause trouble.

“This includes the immediate arrest of people seeking to initiate violent acts or make threats against Government officials or projects in the province.

ExxonMobil to build new power plant

Managing Director, Andrew Barry, says construction is planned to begin in early 2017.

Once completed, it is expected to add enough power generation capacity to supply 40 per cent of Port Moresby’s peak demand.

This new plant adds to an existing 25MW power plant which ExxonMobil sells to PNG Power.

Barry says this arrangement has had significant improvement in the electricity reliability.

InterOil chairman ponders challenge against court decision

Business Advantage PNG reports that InterOil Chairman, Chris Finlayson, says he will challenge the decision by the court to stop the $US2.5 billion (K7.9 billion) transaction from taking place.

Meanwhile, founder and former Chairman of InterOil, Phil Mulacek, tells Business Advantage PNG  that he is open to dialogue.

On November 4, 2016, the Appeal Court of Yukon overturned the Yukon Supreme Court’s ruling that approved ExxonMobils proposal to purchase InterOil.

ExxonMobil acquisition of InterOil before the courts

InterOil Corporation in a statement said that, “the Court of Appeal of the Yukon has accommodated an expedited hearing with respect to the appeal lodged by Phil Mulacek, which is scheduled to be heard on October 31, 2016.

“In addition, the Court of Appeal of Yukon granted a stay of the Supreme Court of Yukon’s order approving the transaction, pending the hearing.

Botten looking forward to discussions

In a recent media release, Oil Search announced possible cooperation and integration of the next phase of LNG development, with Total (SA) and ExxonMobil.

Speaking to Loop PNG, Botten says the gains from the cooperation will benefit all parties, including the landowners and PNG.

Oil giants to start talks on cooperation in LNG development

This will follow once ExxonMobil’s entry into the PRL 15 Joint Venture has been confirmed once its bid and acquisition of InterOil is completed.

OilSearch announced in a media release that ExxonMobil’s entry into the PRL 15 Joint Venture underscored the potential value that would be created by cooperation.

This would position OilSearch to benefit from a cooperative development, given its material interests in all the key gas resources, including PRL 3(38.5%), PRL 15 (23%) and the PNG LNG Project (29%).

ICCC issues Statutory Notice to Exxon Mobil

ICCC Commissioner and CEO Paulus Ain in a statement said, the notice is issued under Section 128 of the Independent Consumer and Competition Commission Act 2002 (ICCC Act).

He said once a Statutory Notice is issued, it compels any individual or company to provide specific information or documents requested by ICCC.

“The issuance of a Statutory Notice is not taken lightly and is exercised when an individual and or a company has refused to voluntarily provide information formally requested by the ICCC.”