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.
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
|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
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
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