By David Winning and Ross Kelly

SYDNEY--ExxonMobil Corp. (XOM) said Friday it is in exclusive talks with InterOil Corp. (IOC) to invest in its natural gas assets in Papua New Guinea, a move that could cement the impoverished Southeast Asian country's position as a new significant energy exporter.

The talks show how rising Asian demand for clean fuels is prompting international companies to raise their bets on regions that have previously played only a small role in the global energy industry. Papua New Guinea, better known for its jungles and tribal violence, is due to start receiving a major revenue injection next year when the ExxonMobil-led $19 billion PNG LNG project starts up.

Houston-based InterOil owns the Elk and Antelope natural gas discoveries in Papua New Guinea. In 2009, it signed an agreement with the government to develop a large-scale liquefied natural gas, or LNG, project on the south coast.

"ExxonMobil is in exclusive negotiations with InterOil over the Elk and Antelope developments," an ExxonMobil spokeswoman said by phone from Port Moresby, Papua New Guinea's capital, Friday.

In a statement confirming the talks with Exxon, InterOil said it is discussing whether gas from the Elk and Antelope fields would support an expansion of the PNG LNG project or a new gas-export facility. It didn't specify financial terms.

Write to David Winning at david.winning@wsj.com and Ross Kelly at ross.kelly@wsj.com

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