PETROMIN NEWS
Petromin Signs Agreement With InterOil for Participation in Elk-Antelope Feild
State-owned Company, Petromin PNG Holdings Ltd, has signed an Investment Agreement with InterOil Corporation for a direct participation in PPL 238 and particularly in the development of the Elk-Antelope gas fields.
The Agreement was signed on Thursday 30th October 2008, between Petromin CEO Mr Joshua Kalinoe and Chairman and CEO of the InterOil Corporation Mr Phil Mulacek.
On hand to witness the signing was the Prime Minister and Minister responsible for Petromin, Grand Chief Sir Michael Somare.
Under the Agreement, Petromin will take a direct interest in the Elk-Antelope gas fields and will fund 20.5% of the costs of developing the fields. The Board took this commercial decision after considering a due diligence report done by the Petromin technical team.
Managing Director and CEO of Petromin, Joshua Kalinoe said he is excited by this new opportunity for Petromin as it enables the company to move forward in the upstream development in the Petroleum Sector and to secure its stake in PNG’s second LNG Project.
“This is a historical and strategic decision taken by the Board of Petromin because we are now a participant in upstream petroleum development in the country.
“I would like to thank InterOil for having confidence in the country and in Petromin, allowing us to participate in the early stages of developing this PPL. We will be working together with InterOil and its other partners to transform the PPL into a PDL within the next 12 months.
“We look forward to a long lasting strategic partnership and hope that the partnership will go beyond the current PPL.”
In a press statement issued by InterOil, Mr Mulacek said InterOil was excited that Petromin as a State entity has agreed to take the interest in the Elk-Antelope fields.
“We are very excited that Petromin has agreed to take this interest and undertake this Investment.”
“Participation by the State Entity confirms the support expressed by the Government of Papua New Guinea for our proposed LNG project and will provide valuable impetus at this time for our exploration and development efforts, Mr. Mulacek said.”
Petromin is the owner and operator of the producing gold mine at Tolukuma, about 100km North West of Port Moresby, and is the 2nd largest holder of exploration tenements. The Company is currently undertaking exploration activities in these tenements.
The Agreement with InterOil paves the way for Petromin to move forward in a similar direction in the Petroleum sector.
