(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
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