Shell’s Fiji general manager Peter Walsh said the company was also seeking expressions of interest for its operations in Fiji, the Solomon Islands, New Caledonia, Samoa, Vanuatu, Tonga and the Cook Islands.
He said the company decided to pull out of these Pacific economies last year, after agreeing to focus on fewer, large-scale businesses.
The sales are expected to be finalised in the next 12 to 18 months and Shell was inviting governments in the region to submit bids, he said.
The in-principle agreement with Interoil is subject to approval by the relevant Papua New Guinea authorities, including the Independent Consumer and Competition Commission (ICCC), according to the company’s Toronto Stock Exchange announcement.
A major revision to the original transaction with Shell involved the abandonment of a ‘lease-back’ arrangement. The statement says both parties expect that Interoil will create additional value from Shell’s business activities and high quality operations in Papua New Guinea.
Interoil operates an oil refinery, upstream petroleum exploration licences and retail and commercial distribution assets in Papua New Guinea and the surrounding area.
At least 300 jobs are now in jeopardy due to the withdrawal, according to Radio New Zealand.
