Oil Search announces takeover of rival InterOil for US2.2 billion

Papua New Guinea-based oil and gas producer Oil Search has announced it will takeover rival InterOil for $US2.2 billion.
Oil Search said in a separate agreement it would also sell part of InterOil's exploration assets and interests acquired from a petroleum retention licence to French oil and gas giant Total.
InterOil's assets include a 36.5 per cent interest in the Papua LNG Project which also constitutes Elk-Antelope, one of Asia's largest untapped gas fields, and owns exploration licences spanning 16,000 square kilometers.
Shares in Oil Search pared earlier gains to rise 1.7 per cent to $7.03 by 11:42am (AEST), after earlier touching a two-month high of $7.29.
The agreement is still subject to the approval of at least two-thirds of InterOil shareholders, and a meeting is expected to take place in July 2016.
It will also need to clear regulatory and court approvals, and the takeover is expected to close in the third quarter of 2016.