Stock Market Watch

InterOil Shares Rally after Company Signs Heads of Agreement for LNG Supply (IOC)

by ·




Shares of InterOil Corporation (NYSE: IOC), an integrated energy company operating in Papua New Guinea and its surrounding Southwest Pacific region, soared in today’s trading after the company, along with Pacific LNG Operations Ltd., entered into a Heads of Agreement with Gunvor Singapore Pte. Ltd. Under the terms of the agreement, InterOil and Pacific LNG will supply one million tons per annum of LNG from the Gulf LNG Project in Papua New Guinea.

InterOil shares rose to an intra-day high of $59.95 following the announcement. The stock ended the day 6.22% higher at $55.64. InterOil shares are down more than 22% this year.


The agreement was signed in Port Moresby and is supported by Peter O’Neill, the Prime Minister of Papua New Guinea. The Prime Minister acknowledged that the government of Papua New Guinea supports the phased LNG development of the Gulf LNG project and the financial structure to ensure LNG revenue for all stakeholders by 2014 to early 2015.

The Gulf LNG Project consists of the Elk and Antelope gas fields and the planned liquefaction and associated facilities in the Gulf Province of Papua New Guinea to be developed by Liquid Niugini Gas Ltd., InterOil and Pacific LNG’s joint venture company.

Commenting on the agreement, Phil Mulacek, CEO of Australia-based InterOil, said that the company is pleased to have executed the agreement with Gunvor, for long-term LNG off-take from the Gulf LNG Project in Papua New Guinea. Mulacek said that the company is proud to work with Gunvor, one of the largest commodity movers in the world. He added that with 2.3 million tons per annum now committed, the company has preliminary LNG offtake arrangements for more than 50% of its start-up LNG volumes.

Mulacek expects the Heads of Agreements to facilitate the remaining infrastructure financing arrangements with binding SPA, driving robust debt coverage for the Gulf LNG project.

More Posts by this author

edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


Tags:

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

You may also like...