French oil giant Total is to buy a 61.3% stake in InterOil’s Papua New Guinea’s large gas fields after agreeing a deal worth up to $3.6billion.
The deal will see Total take a stake in the petroleum retention licences for the Elk and Antelope gas fields, which were found in 2006 and 2009 respectively.
It will also give Total an option in three prospecting licences in the same region as the firms look ahead to a final investment decision for the field by 2016.
Total will operate the licence, which could see them joined by a further partner in the field, paying $470million for its stake with a continent payment of a further $590million. Interoil said further payments depending on the appraisal of the Elk and Antelope fields could take the deal up to $3.6billion.
The fields are thought to contain up to 9 trillion cubic feet of gas, with appraisal and certification set to be finished by 2015.
“Following Total’s entry into exploration in Papua New Guinea in 2012, this new acquisition of an interest in significant discovered resources is an exciting opportunity for Total to develop a new gas production and liquefaction hub in the Asia-Pacific region, where gas demand is very dynamic”, said Total upstream president Yves-Louis Darricarrère,
“Total will leverage its technology and experience in major LNG projects to reinforce its long-term production post-2020.”
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