Puma Energy Holdings acquired InterOil’s oil refinery, service stations and fuel terminals in Papua New Guinea for $526million, marking its first investment in the Pacific nation.
Puma Energy, whose largest shareholder is commodity trader Trafigura Beheer, will fund the purchase with existing bank facilities and cash, the Singapore-based company said in a statement.
The purchase will allow Puma Energy to tap Papua New Guinea’s growth and link the country’s fuel market to its global operations, according to the company.
InterOil said it will use the proceeds to fund its natural gas exploration business as it plans a second export project in Papua New Guinea with partner Total.
The sale follows an unsolicited approach by Puma, InterOil said in a separate statement. The businesses include the Napa Napa refinery in Port Moresby that processes about 28,000 barrels a day, 52 service stations, and 30 fuel depots, terminals and aviation sites, according to its statement.
Puma Energy, formed in 1997 and active in about 45 countries, and Vitol Group, the world’s biggest independent oil trader, are seeking to develop fuel-storage facilities and retail businesses in neighboring Australia as companies such as Royal Dutch Shell close refineries.