Papa New Guinea: Shell Aviation Business Purchased by InterOil

InterOil Corporation  has  announced  that it has contracted, through a subsidiary operating its downstream distribution business, to purchase Shell Oil Products (PNG) Limited, which owns aviation fuelling assets located at the  Jackson International Airport, in Port Moresby, Papua New Guinea.

Under the contract, equity in  the Shell entity is being acquired for $7.5 million which, together with certain additional cash and
working capital adjustments, will be funded by drawing down from existing debt facilities.  The  acquisition is expected to be accretive to the downstream distribution business and will add to  InterOil’s existing aviation fuel distribution network in regional Papua New Guinea.  The  acquisition is conditional upon review and approval by certain statutory authorities in Papua New
Guinea.  “We are excited about the acquisition which will afford InterOil an opportunity to grow our  downstream aviation fuel marketing and distribution business , develop our existing branding in-  country and provide further support to the government and citizens of Papua New Guinea,” said Mr  Phil Mulacek, CEO and Chairman of InterOil.

Earlier this month, InterOil raised the prospect of producing fuel products locally in Papa New Guinea as opposed to the current practise of having to import refined fuel products.  Domestic fuel prices are still determined by the Independent Consumer and Competition Commission (ICCC) and the PNG Government.

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