Exxon Mobil is buying InterOil for $3.6 billion

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Exxon Mobil Corp. is buying natural gas explorer InterOil Corp. for $3.6 billion. Bloomberg explains that the company’s aim is to acquire discoveries in Papua New Guinea that will feed the buyer’s existing gas-export plant. Exxon will pay between US$45 and US$71.87 per share of InterOil, depending on how much gas its field holds.

Exxon plans to chill, liquefy and export the gas from the Elk-Antelope field in its PNG LNG complex on the coast of the South Pacific nation.

“Exxon Mobil will work with co-venturers and the government to evaluate processing of gas from the Elk-Antelope field by expanding the PNG LNG project,” explained an Exxon Mobil spokesperson. “This would take advantage of synergies offered by expansion of an existing project to realize time and cost reductions that would benefit the PNG Treasury, the government’s holding in Oil Search, other shareholders and landowners.”