(EnergyAsia, July 1 2014, Tuesday) — Puma Energy, one of the world’s largest independent midstream and downstream companies, has acquired InterOil Corp’s oil refining and fuels marketing businesses in Papua New Guinea for US$525.6 million, the two companies have announced.
With the takeover of InterOil’s 28,000 b/d refinery in Port Moresby, a network of 52 retail service stations fuel terminals, 30 fuel depots and aviation facilities, Puma Energy said it will become Papua New Guinea’s main fuels supplier.
The Singapore-based firm said it plans to use its extensive experience in fuel storage, distribution and refining to link the Papua New Guinea fuel market with its global operations. It said it plans to retain InterOil staff and manage operations locally.
Puma Energy said it will fund the acquisition from its existing bank facilities and available cash on balance sheet.
CEO Pierre Eladari said: “We have been impressed by InterOil’s business, its strategic asset base, its customer portfolio and the quality of its management and people. There are many parallels between our global businesses and that of InterOil’s – in particular the importance of expertise in logistics, guaranteeing the reliable and secure supply of high quality fuels to our customers.
“We believe strongly in Papua New Guinea and its future growth prospects, and see many opportunities for continued investment in infrastructure and in the skills of our employees to build upon the historic success of InterOil’s business, and to position PNG as a strategic hub within our regional portfolio. 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.”
InterOil said the sale, which followed an unsolicited approach from Puma Energy, will enable it to focus on its upstream and liquefied natural gas (LNG) businesses.
InterOil’s chief operating officer Jon Ozturgut said:
“For the past 10 years, the refinery and distribution businesses have contributed to InterOil’s business model and Papua New Guinea’s development.
“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 monetising gas, the time is right to focus on this part of our business. The transaction immediately provides additional capital to fund our upstream and LNG