InterOil Corporation has announced the sale of companies that hold its Papua New Guinea oil refinery and petroleum products distribution businesses to Singapore based Puma Energy Group Pte for US$ 525.6 million, which includes adjustments for cash and working capital.
The InterOil downstream businesses include the Napa Napa refinery in Port Moresby that processes approximately 28 000 bpd, 52 service stations, 30 fuel depots, terminals and aviation sites. The sale ensures the transition to Puma Energy of all InterOil staff who are employed in the refinery and downstream businesses. This deal is Puma Energy’s first investment in Papua New Guinea and will be funded entirely from Puma’s existing back facilities and available cash on balance sheet.
Puma Energy is one of the world’s largest independent midstream and downstream companies. 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. The acquisition will complement Puma’s existing global strategy of disciplined investment in fast growing markets with a high demand for oil products, offering the opportunity to improve local infrastructure and to provide supply security in remote areas.
Jon Ozturgut, InterOil, COO said, ‘for the past 10 years, the refinery and distribution businesses have contributed to InterOil’s business model I Papua New Guinea’s development. However, our upstream and LNG businesses has become core to the company’s growth and, as a result of the success we have had in discovering and monetising as, the time is right to focus on this part of our business.
‘The transaction immediately provides additional capital to fund our upstream and LNG business. We believe this is in the best interests of Papua New Guinea and our shareholders.’
Pierre Eladari, CEO, Puma Energy 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.’
Edited from various sources by Claira Lloyd
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