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Oil Search yields to ExxonMobil

by LLB Reporter
21st Jul 16 11:55 am

Discrepancy between the two offers

Australia’s Oil Search has dropped out of the contest for the Papua New Guinea-focused InterOil, after ExxonMobil submitted a bid worth around US$300m more than the offer it made for the company back in May.

Oil Search managing director Peter Botten said that in light of the Exxon counter-bid – which is thought to be worth around US$2.5bn against US$2.2bn for the Ensearch offer – the company believed it was “not in the interests of its shareholders” to submit a revised bid.

The discrepancy between the two offers illustrates the additional value that InterOil represents to the US oil major, as the latter’s 36.5% stake in the Elk-Antelope gas fields off Papua New Guinea will give it an overwhelmingly dominant position in both big liquefied natural gas (LNG) developments in in the country.

This story first appeared on Acquisitions Daily, a leading publication that provides critical comment, analysis and statistics on every important issue in acquisitions, mergers and buyouts. Sign up here for a free trial.

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