InterOil Sells PNG Downstream Business, Focus on Gas Business

InterOil Corporation has announced the sale of its Papua New Guinea (PNG) oil refinery and petroleum products distribution businesses to Singapore-based Puma Energy Group for $525.6 million to focus on gas business.

“For the past 10 years, the refinery and distribution businesses have contributed to InterOil’s business model and Papua New Guinea’s development. However, our upstream and LNG business has become core to the company’s growth and, as a result of the success we have had in discovering and monetizing gas, the time is right to focus on this part of our business,” InterOil Chief Operating Officer Jon Ozturgut said in a statement.

The transaction immediately provides additional capital to fund our upstream and LNG business, Ozturgut added.

“We believe this is in the best interests of Papua New Guinea and our shareholders,” Ozturgut stated.

InterOil’s assets in PNG include one of Asia’s largest undeveloped gas fields, Elk-Antelope, in the Gulf Province, and exploration licences covering about 16,000sqkm.