• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days Does Toyota Know Something That We Don’t?
  • 3 days America should go after China but it should be done in a wise way.
  • 9 days World could get rid of Putin and Russia but nobody is bold enough
  • 11 days China is using Chinese Names of Cities on their Border with Russia.
  • 1 hour "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 15 hours Even Shell Agrees with Climate Change!
  • 11 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 12 days Putin and Xi Bet on the Global South
  • 12 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Houthis Knock Out Undersea Internet Connections in Red Sea

Houthis Knock Out Undersea Internet Connections in Red Sea

Yemen's Houthis have reportedly damaged…

Exxon Strikes Deal to Buy Out InterOil for $2.5 Billion

ExxonMobil struck a deal with InterOil Corporation to buy all outstanding shares of the latter energy major at a total cost of $2.5 billion, according to Street Insider.

News of the potential deal first broke earlier this week, when Exxon topped Oil Search’s offer—backed by Total—to pay $2.2 billion for InterOil and its natural gas holdings.

Exxon’s bid beat out the offer from Australian-based Oil Search, which has a stake in Exxon’s PNG LNG as well as the planned second terminal with InterOil, a project dubbed Papua LNG.

The Papua LNG project has more favorable geography than Exxon’s PNG LNG, as the gas fields are located closer to the coast where the export terminal would be constructed.

France-based Total and Oil Search had three days, or until July 21st to respond and present a counter offer. Both of the companies had said they were in “active dialogue” with InterOil in order to prepare more competitive proposals.

"This agreement will enable ExxonMobil to create value for the shareholders of both companies and the people of Papua New Guinea," Rex W. Tillerson, chairman and chief executive of Exxon, said at the closing of the deal.

"InterOil's resources will enhance ExxonMobil's already successful business in Papua New Guinea and bolster the company's strong position in liquefied natural gas."

InterOil's board chairman, Chris Finlayson, said, "Our board of directors thoroughly reviewed the ExxonMobil transaction and concluded that it delivers superior value to InterOil shareholders. They will also benefit from their interest in ExxonMobil's diverse asset base and dividend stream."

ADVERTISEMENT

InterOil shareholders will receive $45 per share sold of the company, paid in kind with ExxonMobil shares at the share price on the transaction date. The investors will also receive a contingent resource payment of $7.07 per share according to the results of a certification process meant to verify the value of leases under InterOil’s name.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News