InterOil to Acquire Shell Papua New Guinea

InterOil Corporation, a Canadian company with operations in Papua New Guinea has reached an "in principle" agreement covering the purchase of 100 percent of the shares in Shell Papua New Guinea Limited. The transaction is subject to the approval of the relevant Papua New Guinea Governmental authorities, including the Independent Consumer and Competition Commission, "ICCC".

The major revision to the original transaction with Shell involves the abandonment of a "lease-back" arrangement. Both parties expect that InterOil will be able to create additional value from Shell's business activities and high quality operations in Papua New Guinea.