InterOil Confirms Selection of Feed and EPC Contractor

InterOil Corporation's Bechtel has been selected by Liquid Niugini Gas to undertake the front-end engineering and design (FEED) and engineering procurement and contracting (EPC) work for its planned LNG facility in Papua New Guinea. Liquid Niugini Gas has also chosen ConocoPhillips Optimized CascadeSM Process Technology for the plant design. InterOil Corporation is one of the three founding shareholders of Liquid Niugini Gas Ltd (PNG).

InterOil expects the LNG project to contribute significantly to shareholder value through five major drivers: natural gas sales; liquids sales (C3, C4); condensate sales; cash flow from LNG project ownership; increased domestic fuel consumption during construction, driving demand for refined products and benefiting InterOil's downstream business segment

"The Liquid Niugini Gas team, led by Dr. Jack Hamilton, has done an excellent job of managing the EPC selection process," InterOil CEO Phil Mulacek commented. "We look forward to supporting the project with gas feedstock from our Elk/Antelope fields."