The company also granted Total an exclusive right to negotiate a farm-in to all its exploration licenses in Papua New Guinea.
The transaction price depends on appraisal and certification of Elk-Antelope, with payments of about $1.5bn to $3.6bn for around 5.4 trillion to 9 trillion cubic ft of hydrocarbon gas equivalent (tcfe), according to InterOil.
InterOil has also provided an option for Total to take an interest in all of its exploration leases in Papua New Guinea (PPLs 236, 237 and 238), which InterOil will continue to operate.
InterOil CEO Michael Hession said that Total is a world-class operator and will diversify Papua New Guinea’s hydrocarbon sector.
"It is satisfying that Total, one of the world’s largest international oil and gas companies, shares our faith in developing Elk-Antelope, a world-class hydrocarbon resource and one of the largest discoveries in Asia in the past 20 years," Hession added.
The transaction, which is expected to complete in Q1 2014, is subject to o conditions, including government approvals and acquisition of the minority interests in PRL15.
