Under the terms of the deal, which includes adjustments for cash and working capital, Puma Energy will acquire InterOil’s refining business, an extensive network of fuel terminals, retail service stations and aviation facilities.
InterOil chief operating officer Jon Ozturgut said the transaction will immediately provide additional capital to fund InterOil’s upstream and LNG business.
"However, our upstream and LNG business has become core to the company’s growth and, as a result of the success we have had in discovering and monetizing gas, the time is right to focus on this part of our business," Ozturgut added.
"We believe Puma Energy is the right company to take over, invest in and grow the downstream and refining businesses for the long-term benefit of Papua New Guinea."
Puma Energy’s existing bank facilities and from available cash on balance sheet will entirely fund for the acquisition.
InterOil’s downstream businesses comprise the Napa Napa refinery, which processes about 28,000 barrels a day, in Port Moresby, 52 service stations, and 30 fuel depots, terminals and aviation sites.
Puma Energy CEO Pierre Eladari said, "This investment marks an important step in the execution of our regional strategy and offers considerable synergy with our developments in Australia and the broader Pacific region."
Image: Puma Energy to acquire downstream assets. Photo: courtesy of suwatpo/Freedigitalphotos.net.
