Papua New Guinea: Total statement regarding Interoil assets

20/07/2016

News

Paris – Following the May 2016 offer by Oil Search to acquire Interoil, and the Memorandum of Understanding entered into by Total and Oil Search, a competing offer to acquire Interoil has been made by ExxonMobil. 
 
Under the Arrangement Agreement between Oil Search and InterOil, Oil Search has the opportunity to submit a revised offer before or after any agreement is entered into by Interoil and ExxonMobil.  
 
Total is analyzing the competing offer in line with its demonstrated policy for capital discipline on acquisitions and investments and taking into account the most recent 2C resource certification of Elk Antelope of under 6.5 tcf completed in July 2016. 
 
Total is the operator of the Elk and Antelope fields and Total is already and will remain the largest shareholder in PRL15 with a 31.1% interest, alongside partners Oil Search (17.7%) and InterOil (28.3%), post the government back-in right of 22.5%.
 
Total considers that the initial offer by Oil Search for InterOil represented a fair value for the Interoil’s assets and Total was keen to increase its share in the project for such a value. It was also clear to Total that a portion of the acquired interests would have to be offered to certain LNG buyers and also to PNG LNG participants in order to develop synergies between the Papua LNG project and the PNG LNG project.
 
Total, as operator of PRL15, is committed to cooperate with the PNG LNG project in order to maximize the value of the Elk and Antelope fields for the benefit of the country of Papua New Guinea and the shareholders of PRL-15.
 
 
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Cautionary note
 
This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which TOTAL S.A. directly or indirectly owns investments are separate legal entities. TOTAL S.A. has no liability for their acts or omissions. In this document, the terms “Total” and “Total Group” are sometimes used for convenience where general references are made to TOTAL S.A. and/or its subsidiaries. Likewise, the words “we”, “us” and “our” may also be used to refer to subsidiaries in general or to those who work for them. 
This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TOTAL S.A. nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise.

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