PNG: InterOil Extends LNG Deals with Mitsui and EWC

InterOil said that it has entered into agreements to extend the dates by which certain conditions are to be met and Final Investment Decisions (FID) made in LNG project agreements with Mitsui until June 30, and Energy World Corp until December 31.

The Joint Venture Operating Agreement (JVOA) for the Company’s proposed Condensate Stripping Plant (CSP) with Mitsui & Co., and associated agreements, have been amended so that the time allowed for FID has been extended until June 30, 2012. In addition, the parties contemplate additional amendments to further extend the JVOA and associated agreements to allow for FID to December 31, 2012, if such extension proves necessary. The JVOA sets out the rights and obligations of the participants of the joint venture to develop a CSP at InterOil’s Elk and Antelope field site in Gulf Province, Papua New Guinea.

The terms of the conditional Project Funding and Construction Agreement (PFCA) and Shareholder Agreement entered into in February 2011 with Energy World Corporation governing the parameters in respect of the development, construction, financing and operation of a planned three million tonne per annum (mtpa) land-based liquefied natural gas (LNG) plant in the Gulf Province of Papua New Guinea (PNG) have been amended so that the date by which conditions are to be met and FID reached has been extended until December 31, 2012. The agreements with EWC provide a framework for the possible expansion of the initial LNG plant’s capacity to up to 8 mtpa of LNG.

The conditional framework agreement with Samsung Heavy Industries and FLEX LNG related to the construction and operation of a planned 2 million tonne per annum (mtpa) floating LNG processing vessel (FLNG) has not been renewed. InterOil and FLEX are continuing discussions.

InterOil has continued to progress the development of its LNG Project by completing front end engineering and design (FEED) for its proposed field gathering system, CSP and pipeline to the proposed LNG plant site on the coast. CSP bids have been received, evaluated and are in the process of being finalized. The pipeline bids have been received and are being evaluated. Designs for the marine loading and export facility and common works have been finalized and are currently out for tender.

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LNG World News Staff, March 30, 2012