Singapore-based InterOil Sells Downstream Businesses For $525.6 Mln

(RTTNews) - Oil and gas company InterOil Corp. (IOC) announced the sale of companies that hold its Papua New Guinea oil refinery and petroleum products distribution businesses to Singapore-based Puma Energy Group Pte for $525.6 million, including adjustments for cash and working capital.

InterOil said its downstream businesses are the Napa Napa refinery in Port Moresby that processes nearly 28,000 barrels a day, 52 service stations, and 30 fuel depots, terminals and aviation sites. The sale ensures the transition to Puma Energy of all InterOil staff, who are employed in the refinery and downstream units.

According to the company, the transaction immediately provides additional capital to fund its upstream and LNG business. As a condition of the sale, Puma Energy might use the InterOil downstream brand for up to a year. Puma Energy and InterOil would begin the handover of operations and transition of staff immediately.

InterOil Chief Operating Officer, Jon Ozturgut, said the sale followed an unsolicited approach from Puma Energy and a strategic review by InterOil of options for the best allocation of capital.

Puma Energy, that distributes petroleum products in over 40 countries, employs more than 6,700 people, and operates nearly 1,700 service stations, more than 60 terminals and a refinery.