PNG Cabinet Approves InterOil's Gulf LNG Project

PORT MORESBY, Papua New Guinea and HOUSTON, Nov. 16, 2012 /CNW/ - 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                                                                             |            
|                                                                                                           |            
|Wayne Andrews                                                                                              |Meg 
LaSalle                                                                                            |
|Vice President Capital Markets                                                                             |Investor 
Relations Coordinator                                                                         |
|The Woodlands, TX USA                                                                                      |The 
Woodlands, TX USA                                                                                  |
|Phone: +1-281-292-1800                                                                                     |Phone: +1-281-292-1800                                                                                 |
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 or from the SEC at and 
its Annual Information Form available on SEDAR at 
SOURCE: InterOil Corporation 
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CO: InterOil Corporation
ST: Texas
-0- Nov/16/2012 11:57 GMT
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