Exxon Mobil Corporation has agreed to acquire all outstanding shares of InterOil, in a transaction worth more than $2.5 billion.
The transaction will be implemented by way of a court-approved plan of arrangement under the Business Corporations Act (Yukon) and will require the approval of at least 66 2/3 percent of the votes cast by InterOil shareholders at a special meeting expected to take place in September, 2016.
In addition to InterOil shareholder and court approvals, the transaction is also subject to other customary conditions. Subject to obtaining the aforementioned approvals and satisfaction of closing conditions, it is expected to close in September, 2016.
When concluded, ExxonMobil will have access to InterOil’s resource base, which includes interests in six licenses in Papua New Guinea covering about four million acres, including PRL 15. The Elk-Antelope field in PRL 15 is the anchor field for the proposed Papua LNG project.
ExxonMobil will also work with co-venturers and the government to evaluate processing of gas from the Elk-Antelope field by expanding its PNG LNG project.