Oil Search Limited (ASX:OSH) has announced it has entered in a Memorandum of Understanding with Total regarding Oil Search’s previous announcement earlier today that it will acquire InterOil Corporation.
Oil Search will acquire 100 percent of InterOil in a transaction that has been approved by both boards, estimated to be worth approximately US$2.2 billion.
The MoU between Oil Search and Total will see Oil Search sell down 60 percent of InterOil’s interests in PRL 15 and 62 per cent of InterOil’s exploration assets to Total.
Both Oil Search and Total will look to pursue opportunities to cooperate on future LNG projects within the Papua New Guinea region.
Oil Search reported a net loss of $53.9 million at 31 December 2015.
