The InterOil Corporation (NYSE: IOC) announced that it will be partnering with Oil Search Limited to tap into the “largest undeveloped gas resource in Papua New Guinea,” known as the Elk-Antelope fields. Oil Search will acquire a 22.8 percent interest in the joint venture, and have the ability to influence the commercialization of the liquefied natural gas reserves in the Elk-Antelope region.
Asia is the target market for any LNG resources in this project, and Oil Search has a similar joint venture with Exxon, which is expected to begin shipping gas to Asia this year. France’s Total S.A. will also take an interest in the joint venture, but the final ownership structure isn’t yet outlined. In December, Total agreed to buy as much as 61 percent of the license from InterOil, but with Oil Search’s increased stake, the size of this acquisition will shrink.
“This partnership will enable us to tap these energy resources more quickly and cost-effectively – and that translates into real financial benefits for Papua New Guinea and the shareholders of the companies involved.
Polar Vortex Cash
It’s been a cold Winter, and you could have cleaned up on natural gas when it was at peak seasonal costs. If you haven’t yet, there’s still a little bit of time left in the cold for you to play before prices sink down to their warm seasonal lows. Christian DeHaemer gives you the skinny…