ExxonMobil bids US$2.2 billion for InterOil, may spark bidding war

MELBOURNE: ExxonMobil Corp has made a bid worth at least US$2.2 billion for Papua New Guinea-focused InterOil Corp , winning the support of InterOil and topping an offer from Oil Search Ltd , Oil Search said on Monday.

ExxonMobil’s move pits it against French giant Total SA , which is backing Oil Search’s offer with an agreement to buy part of InterOil’s stake in the potentially lucrative Elk-Antelope gas field.

Oil Search has at least until July 21 to submit a revised offer and said it was talking to Total about making a higher bid.

“The parties are in active dialogue and have the flexibility to submit a revised offer either during the three day notice period or after InterOil enters into an Arrangement Agreement with ExxonMobil,” Oil Search said.

ExxonMobil has offered US$45 worth of its own shares for each InterOil share plus a payment of US$0.90 per million cubic…

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