PNG's InterOil Receives Third Party Takeover Offer

Papua New Guinea focused InterOil on Thursday said it has received from a third party an unsolicited, conditional and non-binding takeover offer.

“Consistent with its fiduciary responsibilities, the InterOil Board of Directors, in consultation with its legal and financial advisers, is carefully reviewing and considering the unsolicited proposal,” the company said with out naming the company which has extended the offer.  The non-binding proposal is subject to a number of conditions, including (among others) satisfactory completion of due diligence. 

InterOil said it has taken the necessary steps under its existing agreement with Oil Search to engage in further discussions and negotiations with the third party. 

In May, InterOil entered into a binding agreement to be acquired by Oil Search for $2.2 billion ($A3.04 billion). The special meeting of InterOil shareholders to consider the Oil Search transaction is scheduled for July 28, 2016. 

InterOil has a 36.5 percent stake Elk-Antelope gas field. The Papua LNG, being developed by Total, together with partners InterOil and Oil Search, is based on Elk-Antelope gas field.