InterOil, ExxonMobil deal facing delays

InterOil said the Court of Appeal of Yukon on Monday allowed the appeal lodged by Phil Mulacek overturning the Supreme Court of Yukon’s approval of the pending US$2.5 billion ExxonMobil transaction.

Chris Finlayson, chairman of InterOil said, “Despite this disappointing ruling, we’re pleased that ExxonMobil has advised that they remain fully supportive of the transaction as InterOil works through the issues raised by the Court.”

According to InterOil’s statement, the company is continuing discussions with ExxonMobil with respect to extending the outside date.

In addition, InterOil is considering options to file for leave to appeal to the Supreme Court of Canada.

When concluded, the transaction will give ExxonMobil access to InterOil’s resource base, which includes interests in six licenses in Papua New Guinea covering about four million acres, including PRL 15, which includes the Elk-Antelope which is the anchor field for the proposed Papua LNG project.

ExxonMobil earlier also said it aims to work with its co-venturers and the government to evaluate processing of gas from Elk-Antelope field by expanding the PNG LNG project.

LNG World News Staff