InterOil

ExxonMobil Managing Director, Andrew Barry, revealed this yesterday during the Inaugural Petroleum and Energy Summit in Port Moresby.

Today marks seven days since the unanimous decision by InterOil shareholders to agree to revised terms for the takeover arrangement with ExxonMobil to go ahead.

Barry said the acquisition will enhance their position and bolster their business in the country.

“It’s a very new resource and a very exciting time for us in the country,” he said.

Duban said the acquisition will enable the company to create value for the shareholders of both companies and the people of Papua New Guinea.

On Monday, the Yukon Supreme Court in Canada approved a revised commercial arrangement between ExxonMobil and Interoil for the acquisition of the latter.

This follows a majority vote of 91 per cent by InterOil shareholders last week for the arrangements to take place.

Duban said the acquisition increases Exxonmobil’s position in the liquified natural gas business through a diverse asset base and strong dividend stream.

ExxonMobil will now own InterOil’s assets in the undeveloped Elk-Antelope gas fields, in the Gulf Province, and exploration licenses covering about 16,000sqkm.

In a statement today, InterOil announced that the Supreme Court of Yukon in Canada, granted a final order approving the arrangement between InterOil and ExxonMobil.

In November 2016 the Yukon Supreme Court had initially upheld an appeal by InterOil founder, Phil Mulacek, against an original takeover offer.

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 20^th 2017.

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.

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.”

Prime Minister Peter O’Neill told Parliament today that the country could not afford to buy any shares in the acquisition given the current cash flow problem.

However, he said the Government has put both companies on notice that the Government will exercise on its right under the Oil and Gas Act that enables it to 22.5% shares as soon as the proposals put out by the operator of the fields.

O’Neill was responding to Gulf Governor on the position of the Government on the acquisition of InterOil by ExxonMobil.

In a statement released on Monday, ICCC Commissioner, Paulus Ain says the proposed acquisition may raise competition issues under section 69 of the ICCC Act.

“If the transaction proceeds without a clearance or an authorization from the ICCC, we reserve our rights to institute legal action in Court to challenge the acquisition, if we ultimately form a concluded view that the acquisition would have some serious negative implications on competition,”

This will see the international oil giant owning InterOil petroleum licenses in Papua New Guinea.  

In a statement to Port Moresby Stock Exchange  on Thursday, July 21, Exxon Mobil Corporation (and InterOil Corporation  announced an agreed transaction worth more than $2.5 billion, under which ExxonMobil will acquire all of the outstanding shares of InterOil.

“This agreement will enable ExxonMobil to create value for the shareholders of both companies and the people of Papua New Guinea,” said Rex W. Tillerson, chairman and chief executive of Exxon Mobil Corporation.

This follows notification on 18 July from InterOil that it had received a ‘Superior Proposal’ from Exxon Mobil Corporation (ExxonMobil) and that the InterOil Board intended to change its recommendation and enter into an Arrangement Agreement with ExxonMobil.