InterOil is to increase its interest in two licenses following the withdrawal of Pacific Exploration & Production Corporation from Papua New Guinea.
The compan said in a statement on Thursday that it will increase interest in the PRL 39, which contains the Triceratops discovery, and in PPL 475, which contains the Raptor discovery.
InterOil Chief Executive Michael Hession said, “We will now own more than 78% of the Triceratops and Raptor discoveries.”
He added that the withdrawal of Pacific, former Pacific Rubiales Energy, simplifies license ownership for any commercialization discussions with other strategic players.
On completion of Pacific’s withdrawal, InterOil’s gross interest in PRL 39 will increase from 87.0968 percent to 100 percent and its gross interest in the Triceratops discovery will increase from 69.0931 percent to 78.1114 percent.
With Pacific’s withdrawal from PPL 475, formerly PPL 237, InterOil’s gross interest will increase from 87.0968 percent to 100 percent and its interest in Raptor will increase from 66.2082 percent to 79.1114 percent.
The 2012 farm-in agreement made certain provisions for Pacific to withdraw from the two licenses, including the right to receive a repayment of approximately US$96 million from the net cash proceeds of the commercial sale of petroleum recovered or produced from PRL 15.
The repayment of US$96 million is to be made within six years from the date of withdrawal, with contributions of US$66 million from InterOil and US$30 million from minority interests.
LNG World News Staff; Image: InterOil