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The transaction is valued at US$11.3 million for assets and inventory including three terminals, seven depots and over 40 retail sites.
InterOil will be assisted in assuming management and control of BP Papua New Guinea by the secondment of existing key BP management to ensure a seamless transfer over the following year.
“We are excited about the synergies this distribution business will have with InterOil’s future refining operations. The vertical integration of these businesses will be beneficial to current and future customers through increased efficiencies resulting in a more cost competitive market,” said Phil Mulacek, CEO of InterOil.
InterOil is developing an integrated energy business consisting of an oil refinery, petroleum exploration, and retail assets in Papua New Guinea. The majority of product from the refinery is secured by contracts with Shell Overseas Holdings Ltd.
BP Singapore is already the exclusive agent for all crude oil supplied to the refinery. In addition to the refinery and retail assets, InterOil has commenced an extensive exploration program in Papua New Guinea.
