Oil Search Agrees to Buy InterOil in Deal Valued at $2.2 Billion

Papua New Guinea oil and gas producer Oil Search Ltd. agreed to buy InterOil Corp. in a deal valuing the explorer at about $2.2 billion.

Oil Search is offering 8.05 of its shares plus a so-called contingent value right, linked to gas reserves at the Elk-Antelope fields in PNG, for each InterOil share, according to a regulatory statement. InterOil’s current market capitalization is about $1.57 billion.

In a separate agreement, Oil Search would sell to Paris-based Total SA the majority of a petroleum license and exploration assets acquired from InterOil.

The takeover, which was recommended by the InterOil board, is expected to be completed in the third quarter of 2016, according to the statement.

Link to Statement:Link

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