28 September, 2010
Pacific LNG And Interoil To Partner With Energy World To Construct A Two Mtpa Land-Based LNG Plant

Singapore -- September 28, 2010 - Pacific LNG Operations Ltd. (Pacific LNG) today announced that Pacific LNG, InterOil Corporation and Liquid Niugini Gas Limited, their Joint-Venture LNG Project Company with InterOil, have signed a binding Heads Of Agreement with Energy World Corporation Ltd. (EWC) to construct a two million tonne per annum (mtpa) land-based LNG plant (Train 1) in the Gulf Province of Papua New Guinea (PNG). The plant would process an estimated 1.5 trillion cubic feet (Tcf) of natural gas over 15 years with early stage capital expenditure estimates amounting to US$455 per metric tonne of LNG production. In return for its commitment to fully fund the plant, EWC is entitled to a fee of 14.5% of the proceeds from the sale of LNG from the facilities, subject to adjustments based on timing and execution, The HOA sets out the major terms and conditions which the parties have agreed shall be included in the Train 1   Funding and Shareholder’s Agreements, as well as the first expansion from 2mtpa to 3 mtpa.

The agreement with EWC for the modular mid-sized plant is an opportunity to enhance the Mitsui joint venture and accelerate monetization of the Elk and Antelope resource by bringing the LNG production  start-up forward by more than two years to   2013 to coincide with the Condensate production start-up.

Moreover, it will minimize the recycling of Gas and eliminating the offshore pipeline thus significantly reducing the capital cost for the partners of the Train 1 Project.

Infrastructure required for the project includes a jetty and breakwater for the LNG loading facility with expansion potential, and approximately 50 mile (80 Km) pipeline from the Elk and Antelope fields to the coast. The wells and processed natural gas transport from the condensate stripping plant (CSP) to the coast in the Gulf Province will be the responsibility of the owners of the Elk and Antelope fields, including InterOil and its upstream partners.

Definitive agreements are under negotiation with a view to being finalised by the end of December 2010, following completion of engineering and design work, financing and shareholder agreement, and further regulatory approvals.   The current schedule aims for these LNG facilities to be operational by late-2013 to coincide with the start-up of the proposed CSP joint venture with Mitsui.

Henry Aldorf , President of Pacific LNG commented, “The addition of an early, modular mid-sized LNG project with Energy World together with its suppliers and technology partners such as: Siemens, Chart Industries, Arup Engineering, and GTT enhances the value of the Elk and Antelope resource. This value enhancement   is created by the early LNG   and   condensate cash flow,   cost reductions   and improved synergies with our proposed CSP with Mitsui. This will also provide significant benefits to the people of the Gulf Province by way of jobs, infrastructure, power, local jetty, local fuel, training, education and health services and an important source of income to the State. We welcome, together with InterOil, Liquid Niugini Gas, and The State of Papua New Guinea, Energy World as our Gulf Province LNG partner.   This is a key step forward in the continuing process to monetize the Elk and Antelope resource.”

About Pacific LNG

Pacific LNG is an affiliate of Clarion Finanz A.G, a private company specialized in energy and mining investments .Pacificic LNG owns approximately 20% of the Elk Antelope fields, 47.5 % of Liquid Niugini Gas and is a large shareholder in InterOil

About InterOil

lnterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region.   InterOil’s assets consist 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, Inter0il is a shareholder' in a joint venture established to construct an LNG plant on a site adjacent to InterOil refinery in Port Moresby. Papua New Guinea.

lnterOil’s common shares trade on the NYSE in US' dollars.

About Energy World Corporation Ltd.

Energy World Corporation Ltd (EWC) is an integrated energy company based in Hong Kong and listed in Hong Kong and listed in Australia and New Zealand.  EWC has primary gas and power operations located at Sengkang, South Sulawesi in Indonesia: and also produces gas, power and was the first producer of domestic LNG in Philippines.