Exxon is currently constructing its own $19 billion LNG liquefaction project in PNG and is a obvious choice to take a stake in InterOil’s competing project, which almost certainly will cost more than the $6 billion original price tag. Exxon raised the cost of its LNG project in PNG by 21% just last year.
According to today’s announcement, InterOil and Pacific LNG Group are considering selling a stake of unspecified size in its 3.9 million licensed acres to Exxon. The price would be sufficient for the partners to build a second LNG facility (called a “train”). Exxon would also fund additional drilling.
InterOil has reached an agreement with the government of PNG that smooths over the rough spots in the relationship between the two, but the massive costs of building LNG facilities threatens to derail the firm’s plans unless it can find a deep-pocketed partner. Exxon certainly fits the bill there.
InterOil’s shares traded at around $10 at the beginning of 2009, and closed yesterday at just over $100, a new all-time high. The stock’s 52-week range is $50.90 to $106.44.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.