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InterOil Corporation
IOC today announced that
negotiations with ExxonMobil Papua New Guinea Ltd. (EMPNG), a subsidiary of
ExxonMobil
XOM, relating to the development of Petroleum Retention
License 15, were ongoing notwithstanding the lapse of an exclusivity
arrangement.
InterOil will continue to work with EMPNG with the aim of accelerating the
monetisation of its gas resources on terms that will benefit all stakeholders
including Papua New Guinea.
InterOil today also announced it had finalized a $75 million secured loan
facility to accelerate its exploration and drilling program.
InterOil's Executive Vice President of Corporate Development and Government
Relations, Keli Taureka, has discussed the latest developments with the
Government of Papua New Guinea and the Governor of the Gulf Province. "All of
InterOil's businesses and assets are in PNG and we remain fully aligned with
PNG's ambitions to develop its natural resources. InterOil makes a
significant contribution to PNG as a major employer and provider of fuel and
we value our strong relations with the Government and local communities," Mr
Taureka said.
$75 Million Loan Facility
InterOil today said that the Company and its subsidiaries, InterOil Products
Limited (Downstream entity) and certain Upstream Entities, have entered into a
one year $75 million equivalent combined secured loan facility with Westpac
Bank PNG Limited (Westpac) and Bank South Pacific Limited (BSP) to be drawn in
tranches, either USD and/or Papua New Guinea Kina (PGK), subject to standard
closing conditions.
Borrowings under the facility will be used for exploration and drilling
activities with $37.5 million funding to start immediately, and a further
$37.5 million upon the execution of an agreement in relation to monetization
of the Elk and Antelope resource. The principal repayment will be made on the
earlier of, the first resource payment or 12 months from the first drawdown.
Existing downstream working capital facilities with Westpac and BSP totalling
K140.0 million have been underutilized, due to the downstream division's
prudent working capital management initiatives and strong liquidity. As such,
all parties have agreed to channel existing downstream approved limits of
K45.0 million to this secured loan facility. The downstream working capital
facility will be kept.at the remaining K95.0 million.
Both facilities will be shared between Westpac and BSP, secured against
downstream assets and undertakings, IOC parent guarantee, and guarantees from
certain Upstream entities.
In announcing its 2013 second quarter results on July 13, the Company said
that it would build on its success by seeking additional exploration partners.
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