PORT MORESBY, Papua New
Guinea and HOUSTON,
Nov. 16, 2012 /PRNewswire/
-- InterOil Corporation (NYSE:IOC) (POMSoX:IOC) is pleased to
have been notified by the Prime Minister Hon. Peter O'Neill that
the National Executive Council (NEC) of Papua New Guinea has approved InterOil's LNG
development project in the Gulf Province. The decision clears the
way to proceed with our plans for an LNG plant in the Gulf Province
with initial output of a minimum of 3.8 million tonnes per annum.
As the Prime Minister has announced, the decision also approves the
acquisition by the State of an additional 27.5% equity interest in
the Elk/Antelope gas fields, over and above the 22.5% interest to
which it is entitled under the Oil & Gas Act, on terms to be
negotiated with InterOil.
InterOil understands that the State intends to take its
entitlement to gas from the project in kind, to be used in part in
domestic power generation and natural gas related industries
thereby providing a boost to PNG's growth and prosperity.
InterOil is pleased to be able to provide this opportunity to the
State, and is the first developer of a major oil & gas project
to do so.
As the Prime Minister has announced, the NEC has approved the
establishment of a State negotiating team to discuss and agree to
the necessary amendments to the 2009 project agreement between the
State and Liquid Niugini Gas Limited, to give effect to the NEC
decision, and to agree on the terms on which the State will acquire
the additional equity interest. The NEC decision confirms
that the basis of the acquisition will be commercial market
terms. The NEC also includes as a condition of its approval
an agreement with regard to an internationally recognized operator
of the facilities. InterOil is ready to participate in these
discussions, which it expects will commence shortly.
Given the importance of the LNG project, the PNG Cabinet also
approved the establishment of the Ministerial Gas Committee
comprised of key economic ministers to fast track commercialization
of the county's second LNG project.
Now that the Government's position has been clarified, InterOil
anticipates being able to conclude an agreement for a sale of an
interest in the Elk and Antelope resource in Petroleum Retention
Licence 15 and the first 3.8 million tonnes per annum Gulf LNG
Train to a partner or partners in the coming weeks. Major oil
companies, national oil companies, and Asian utilities have been
actively engaged in the process.
InterOil wishes to record its appreciation for the support of
the Prime Minister, the Minister of Petroleum and Energy, and
Government departments in reaching this landmark stage in the LNG
project approval process. We look forward to bringing this LNG
project on-line, for the long-term benefit of Papua New Guinea, InterOil, and all project
stakeholders.
About InterOil
InterOil Corporation is developing a vertically integrated
energy business whose primary focus is Papua New Guinea and the surrounding
region. InterOil's assets consist of petroleum licenses
covering about 3.9 million acres, an oil refinery, and
retail and commercial distribution facilities, all located in
Papua New Guinea. In
addition, InterOil is a shareholder in a joint venture established
to construct an LNG plant in Papua New
Guinea. InterOil's common shares trade on the NYSE in US
dollars.
Investor Contacts for InterOil
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|
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Wayne
Andrews
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Meg
LaSalle
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Vice
President Capital
Markets
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Investor
Relations Coordinator
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Wayne.Andrews@InterOil.com
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Meg.LaSalle@InterOil.com
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The
Woodlands, TX
USA
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The
Woodlands, TX USA
|
Phone:
+1-281-292-1800
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Phone:
+1-281-292-1800
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Forward Looking Statements
This press release includes "forward-looking statements" as
defined in United States federal
and Canadian securities laws. All statements, other than statements
of historical facts, included in this press release that address
activities, events or developments that InterOil expects, believes
or anticipates will or may occur in the future are forward-looking
statements, including in particular, the acquisition by the State
of a 50% interest in the Elk and Antelope fields and the terms of
such acquisition, the State's use of gas from these fields, the
impact of the project on the PNG economy, the ability to attract a
strategic LNG partner and the timing of any agreement with such
partner, the ability to amend the terms of the 2009 Project
Agreement to effect the NEC approval, the construction and
development of the proposed large scale LNG project, business
prospects, strategies, regulatory developments, and the ability to
obtain financing on acceptable terms. These statements are based on
certain assumptions made by the Company based on its experience and
perception of current conditions, expected future developments and
other factors it believes are appropriate in the circumstances,
including discussions with the State, the terms of the NEC
approval, the terms of the 2009 Project Agreement and the status of
the LNG strategic partner search status. No assurances can be given
however, that these events will occur. Actual results could differ,
and the difference may be material and adverse to the Company and
its shareholders. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the Company, which may cause our actual results to
differ materially from those implied or expressed by the
forward-looking statements. Some of these factors include the risk
factors discussed in the Company's filings with the Securities and
Exchange Commission and on SEDAR, including but not limited to
those in the Company's Annual Report for the year ended
December 31, 2011 on Form 40-F and
its Annual Information Form for the year ended December 31, 2011. In particular, there is no
established market for natural gas or gas condensate in
Papua New Guinea and no guarantee
that gas or gas condensate from the Elk and Antelope fields will
ultimately be able to be extracted and sold commercially.
Investors are urged to consider closely the disclosure in the
Company's Form 40-F, available from us at www.interoil.com or from
the SEC at www.sec.gov and its Annual Information Form available on
SEDAR at www.sedar.com.
SOURCE InterOil Corporation