Total to take 60% stakes in PNG gas assets

Sydney

TOTAL SA and Oil Search Ltd will divide the Papua New Guinea (PNG) assets of InterOil Corp in a two-step deal as global energy companies seek to expand the Pacific nation's liquefied natural gas (LNG) exports.

After buying 100 per cent of its fellow Papua New Guinea explorer for US$2.2 billion, Oil Search will then sell the majority of the acquired gas and exploration assets to Paris-based Total to fund about 60 per cent of the InterOil purchase, according to a statement on Friday. Inter- Oil's current market capitalisation is about US$1.57 billion. Oil Search said the deals will lead to greater integration between the country's two LNG projects.