SINGAPORE--Puma Energy has bought InterOil Corp.'s (IOC)
downstream fuel-refining and marketing businesses in Papua New
Guinea for $525.6 million, as the Singapore-based firm seeks to
expand in regions with growing fuel demand.
The deal is Puma Energy's first investment in Papua New Guinea,
making it a major fuel supplier to the country.
Puma Energy is taking over the Napa Napa refinery at Port
Moresby that processes about 28,000 barrels of crude oil a day, a
network of 52 service stations, and 30 fuel-storage depots,
terminals and aviation-fuel sites, the companies said Monday.
The acquisition will be fully funded by Puma Energy's existing
bank facilities and available cash. Puma Energy will be allowed to
use InterOil's downstream brand for up to 12 months and the
handover of operations and staff will begin immediately, the
companies said.
Puma Energy, in which commodities trader Trafigura Beheer BV has
an approximately 49% stake, has been expanding its fuel-marketing
operations in regions with growing fuel demand such as Africa,
Australia and Southeast Asia.
New York-listed InterOil said the deal "follows an unsolicited
approach from Puma Energy and a strategic review by InterOil of
options for the best allocation of capital."
Interoil, which has liquefied natural-gas discoveries in Papua
New Guinea, will focus on its upstream or
exploration-and-production activities in the country, and the sale
to Puma provides capital to fund them, its Chief Operating Officer
Jon Ozturgut said in a statement.
In December, InterOil and France's Total SA signed a multi
billion-dollar deal to develop two of Papua New Guinea's largest
undeveloped natural-gas fields and build a gas-export facility.
Puma Energy has been picking up fuel-marketing assets from oil
majors like Exxon Mobil Corp., BP PLC and Chevron Corp., which are
exiting oil-refining and distribution businesses to focus on core
oil-and-gas production.
Last year, Puma Energy bought the fuel-distribution networks of
Australian fuel marketers Central Combined Group, Ausfuel and
Neumann Petroleum, giving it direct access to the region's
markets.
Write to Eric Yep at eric.yep@wsj.com
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