The Gulf LNG Project in Papua New Guinea (PNG) comprises the Elk and Antelope gas fields and Liquid Niugini Gas Ltd., Pacific LNG and InterOil joint-venture project company, with modular LNG plants contracted with Energy World Corp. Ltd. and a Fixed Floating LNG facility being developed with Flex LNG Ltd. and Samsung Heavy Industries Co., Ltd.
The Prime Minister of PNG, the Governor of the Gulf Province and several Ministers witnessed the signing of the HOA and acknowledged that the PNG Government fully supports the phased LNG development of the Gulf LNG project in the Gulf Province and the financial structure to ensure LNG revenue for all stakeholders by late 2014 to early 2015.
The HOA sets out the basis upon which the parties intend to conclude terms for the purchase and sale of one mtpa of LNG, (FOB) for a period of 15 years commencing in 2015, to be supplied by the proposed Gulf LNG Project in PNG. Pacific LNG and InterOil intend to complete negotiations and execute a binding Sale and Purchase Agreement (SPA) by second quarter 2012.
Pacific LNG’s President Henry Aldorf commented, “Gunvor is a top tier global energy commodity player, and we are very pleased to form a long-term relationship with them, and continue to expand our strategic LNG Marketing arrangements to optimize value for our LNG project. With 2.3 mtpa committed, the Project has secured offtake arrangements for more than 50% of its start-up LNG volumes, which constitutes a strong endorsement by the market of our Modular, and Fixed Floating LNG execution strategy and our Project as a whole. The HOAs/SPAs facilitate remaining infrastructure financing arrangements, with robust debt coverage.”
Liquid Niugini Gas V.P. LNG, Conrad Kerr commented, “Gunvor has become an established player in the LNG industry through its success in acquiring, and moving large amounts of short- term LNG cargoes in the last few years. It was only a matter of time until they used their extensive global energy physical commodity platform to move into long-term LNG. We are interested in value optimization for our LNG, and a long-term relationship with Gunvor enhances this strategy.”
About Pacific LNG
Pacific LNG is an affiliate of Clarion Finance Pte. Ltd., a private company specialized in energy and mining investments. Pacific LNG owns an economic interest of approximately 20% in the Elk Antelope fields, 47.5 % of Liquid Niugini Gas and is a large shareholder of InterOil.
About Gunvor Group
Gunvor Group is the world’s third largest independent oil trading company by turnover, with trading conducted from offices in Geneva, Singapore and Nassau, Bahamas. Gunvor Group trading partners and clients include eight out of the top ten, and seventeen out of the top twenty of the world’s largest oil and energy companies. In addition to its traditional trading business in crude oil and oil products, Gunvor Group also trades a broad range of other energy commodities including coal, gas, LNG, and emissions. The ownership, operations and management of physical assets demonstrate a long-term commitment to the business.
Gunvor Group financial strength is highlighted by a strong balance sheet with more than USD 10 billion total assets in 2010. The majority of investments are strategic assets that directly support the trading portfolio. Gunvor Group actively invests in terminals, pipelines, storage facilities including participations in upstream exploration projects with key partners. Access to pipeline capacity, storage and LNG facilities is the backbone of Gunvor’s natural gas and LNG growth and diversification strategy. Gunvor Group is currently securing long term contracts and partnerships for access to pipeline gas, transportation and storage in Europe, as well as LNG supplies, shipping and regasification infrastructure globally.
About InterOil
InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil’s assets consist of petroleum licenses covering about 3.9 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant in Papua New Guinea.
InterOil’s common shares trade on the NYSE in US dollars.