InterOil to hold public offering

INTEROIL Corp (InterOil), the operator of the second proposed liquefied natural gas, yesterday announced it will hold a public offering of its convertible senior notes to raise funds for the proposed condensate stripping plant at the Elk/Antelope in Gulf province, The National reports.

The offer is subject to market and other conditions due 2015.

A statement released yesterday said: “InterOil intends to use the net proceeds from this offering, including the proceeds from any exercise of the over-allotment option, for the development and construction of a proposed condensate stripping plant and related facilities, a LNG plant and related facilities, other exploration and development activities, the repayment of the US$25 million (K66 million) loan with Clarion Finanz AG, which matures next January, and general corporate purposes.”

InterOil is authorised to raise gross proceeds of up to US$280 million (K741 million) from the combined offerings, including over-allotments.

InterOil has granted the underwriters of the offerings a 30-day option to purchase 15% of each security to cover over-allotments, if any.

Each offering will be made under the individual prospectus supplement to InterOil’s base shelf prospectus dated last Tuesday.

American companies Morgan Stanley & Co. Inc  (MSCI) and Macquarie Capital (USA) Inc (MCI) will act as joint book-running managers on behalf of the underwriters for the common shares offering. 

MSCI will act as the sole book-running manager and MCI will act as the joint lead manager on behalf of the underwriters for the convertible note offering. 

InterOil eyes exclusively Gulf operations

Lamaika youth dancers from Mei'i and Uaripi villages of Tairuma Bay, Kerema, Gulf
Province, performing at the opening of InterOil's Kerema office last Thursday

INTEROIL Corporation is moving to make final decision on location of its condensate stripping plant and its liquefied natural gas facility in Gulf Province.

Gulf governor Havila Kavo gave the strongest indication yet, last Thursday, of InterOil’s intention to operate exclusively from Gulf province without pulling a liquid gas carrier pipeline all the way from Gulf to InterOil’s Napa Napa facility inside Port Moresby harbour.

 The indication was that InterOil was now more committed to developing, processing and marketing the condensate and liquified natural gas products directly from Gulf Province, he said.

Governor Kavo said he had been briefed by the company of its intentions.

He was speaking at a public celebration of the formal opening of InterOil’s Gulf province office.

InterOil's new Kerema office

Rundown Kerema town became a hive of colourful activity last Thursday as townsfolk and nearby villagers celebrated the event hailed as a show of sincerity by InterOil of its development plans.

Governor Kavo used the occasion to indicate that he was pleased InterOil was moving to develop its gas condensate stripping plant (CSP) and its liquefied natural gas (LNG) facility exclusively in Gulf province.

Governor Kavo said he was encouraged by InterOil’s cautionary approach to ensuring that issues pertaining to project impacted and affected area landowners were exhaustively and amicably dealt with as matters of priority to ensure harmonious development of the CSP and LNG facility.

InterOil’s community affairs general manager Geoff Hiatt said the company was seriously looking at its Gulf province project development options and a definite announcement will be made in the coming weeks of how the company will position its development options.

InterOil community affairs general manager Geoff Hiatt and Governor Havila Kavo cutting the ribbon to open InterOil’s Kerema office last Thursday

InterOil’s media and public affairs manager Susuve Laumaea described the office opening as symbolic of InterOil’s commitment to establish the company as “long haul” partner in driving Gulf province’s overall socio-economic development initially on the back of the company’s vast Elk and Antelope natural gas discoveries. Delivering a message on behalf of the company’s top management Mr Laumaea said InterOil was committed to “walking hand-in-hand” with the government and people of Gulf in a spirit of goodwill, unity and cooperation.

He said it was the company’s desire to use the Elk and Antelope prospects as catalyst to gainfully drive the province’s long time development.

Senior InterOil officials, Department of Petroleum and Energy representatives, government gas liaison officers and Gulf governor Havila Kavo joined Gulf province administration officials, public servants, town residents and nearby Karaeta, Siviri, Mei’I, Uaripi, Petoe and Luritera villagers to celebrate the event.

The InterOil team from left: Ray Weber, Fred Airi, Geoff Hiatt, Maurice Peremai and Susuve Laumaea outside the newly opened InterOil office in Kerema last Thursday