Related Articles
Forward article link
Share PDF with colleagues

Exxon's PNG InterOil plan has hit some hurdles

The company's bid comes unstuck over undervalued gas reserves

ExxonMobil is running into new hurdles as it tries to buy Papua New Guinea (PNG)-based gas explorer InterOil. The move would give it a dominant role in one of Asia-Pacific's most competitively priced sources of liquefied natural gas. Despite implicit endorsement from the PNG government and after trumping rival takeover efforts by Woodside Energy and Oil Search, Exxon's move is being thwarted by InterOil's founder and third-largest shareholder, Phil Mulacek, who says the bids still significantly undervalue the target's hydrocarbon assets. Exxon launched an $2.5bn unsolicited scrip-based bid - a bid offering shares instead of cash - for InterOil in mid-2016 but raised this to around $3.9bn i

Also in this section
Odebrecht's trail of destruction
20 February 2017
The builder's region-wide corruption scheme has endangered energy projects across Latin America, none more important that Peru's Southern Gas Pipeline
Yet more Australian LNG
27 January 2017
While there's no end in sight for the global gas glut, higher crude prices will help exporters
The glut still weighs
25 January 2017
Higher oil prices will lift some LNG contracts, but do little to support the spot market