National museum controversy reaching denouement
Four unions want to nix proposed airline merger

InterOil shares crushed as PNG govt wields stick


SHARES OF InterOil fell as much as 24% today on concerns that Papua New Guinea may require the company to make major changes to its LNG project.

Comments made by the country’s Minister of Petroleum and Energy required a response from InterOil, who basically said its project plan meets a previous agreement.

The disagreement appears to be over the project’s size, which will be two million tons per annum and can be expanded to 8 mtpa. The government wants a project with production of 7.6-10.6 mtpa.

No one wants to pick a fight with a government that is an important partner, so the company must tread carefully.

A larger project would obviously require much more capital expenditure than the smaller project and be more risky for InterOil.

Right now, InterOil doesn’t appear to be making plans to change the project, but keep an eye on this going forward because it will have a big impact on the company’s cash flow.

Source: The Motley Fool, 27 September


Feed You can follow this conversation by subscribing to the comment feed for this post.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)