ExxonMobil closes $2.5B deal, one of Tillerson's last
February 24, 2017
ExxonMobil (NYSE: XOM) has completed its acquisition of InterOil (NYSE: IOC) for roughly $2.5 billion worth of ExxonMobil stock, or $45 per InterOil share. The payment's exact size will depend on certification of the Elk-Antelope natural gas field in Papua New Guinea, where ExxonMobil already runs the $20 billion PNG LNG plant, said to be the country’s first gas export operation. The deal is one of the last negotiated by former ExxonMobil CEO Rex Tillerson before he left to become US Secretary of State.
ExxonMobil reached its agreement with InterOil in July after beating out rivals and existing InterOil shareholders Total (NYSE: TOT) and Oil Search (ASX: OSH), with the latter offering ExxonMobil $2.2 billion in May. InterOil holds six licenses to develop energy projects spanning 4 million acres in Papua New Guinea. The company has delisted from the NYSE as part of the deal, while ExxonMobil shares closed Thursday up about 1%.