Deal insight

Exxon outbids Oil Search for InterOil

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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 contains

  • Document

    Exxon outbids Oil Search for InterOil

    PDF 297.08 KB

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 5 images and tables including:

Tables

  • Transaction details: Table 1
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2
  • Strategic rationale: Table 1
  • Deal analysis: Table 1

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