Deal insight
| |
7 Pages

Exxon outbids Oil Search for InterOil

Exxon outbids Oil Search for InterOil

Report summary

ExxonMobil is to acquire InterOil, after outbidding Oil Search. The prize is LNG. PRL15 is an undeveloped multi-tcf gas discovery, earmarked to supply some of the lowest breakeven pre-FID LNG projects globally. There are still huge uncertainties as to how development of PRL15 will play out. Our base case has assumed a two-train, greenfield LNG development – Papua LNG. The entrance of ExxonMobil, which operates the competing PNG LNG project, almost certainly changes the story. Nonetheless (and to some extent because of these uncertainties), we think the deal represents a big vote of confidence in: 1) long-term LNG demand, despite near-term over-supply; 2) the global competitiveness of Papua New Guinea LNG specifically; 3) yet-to-find resource upside on the block; 4) long-term oil prices in excess of US$70/bbl.

What's included?

This report includes 1 file(s)

  • Exxon outbids Oil Search for InterOil PDF - 297.08 KB 7 Pages, 5 Tables, 0 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • PRL15 (Elk-Antelope)
    • Other assets
  • Deal analysis
    • Development scenarios
      • Scenario 1: Papua LNG
      • Scenario 2: integration with PNG LNG expansion
  • Strategic rationale
    • InterOil
    • ExxonMobil
    • Implications for Oil Search and Total
  • Oil & gas pricing and assumptions

In this report there are 5 tables or charts, including:

  • Executive summary
  • Transaction details
    • Transaction details: Table 1
  • Upstream assets
  • Deal analysis
    • Deal analysis: Table 1
  • Strategic rationale
    • Strategic rationale: Table 1
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...