Puma Energy, a global integrated midstream and downstream energy company, has acquired InterOil Corporation subsidiary companies that own refining and fuels marketing businesses in Papua New Guinea for US$525.6 million, which includes adjustments for cash and working capital.
Under the deal, which represents Puma Energy’s first investment in Papua New Guinea, Puma will acquire InterOil's refining business, an extensive network of fuel terminals, retail service stations and aviation facilities, becoming Papua New Guinea's major supplier of fuel. The acquisition will be entirely funded from Puma Energy’s existing bank facilities and available cash on balance sheet.
Puma Energy, one of the world’s largest independent midstream and downstream companies, plans tolink the Papua New Guinea fuel market with its global operations. Existing InterOil staff will be retained and the operations are intended to be managed locally.
The acquisition will complement Puma Energy’s existing global strategy of disciplined investing in fast-growing markets with a high demand for oil products, offering the opportunity to improve local infrastructure and to provide supply security in remote areas.
Pierre Eladari, Puma Energy’s CEO stated:
We have been impressed by InterOil’s business, its strategic asset base, its customer portfolio and the quality of its management and people. There are many parallels between our global businesses and that of InterOil’s – in particular the importance of expertise in logistics, guaranteeing the reliable and secure supply of high quality fuels to our customers.We believe strongly in Papua New Guinea and its future growth prospects, and see many opportunities for continued investment in infrastructure and in the skills of our employees to build upon the historic success of InterOil’s business, and to position PNG as a strategic hub within our regional portfolio. This investment marks an important step in the execution of our regional strategy and offers considerable synergy with our developments in Australia and the broader Pacific region.