Interoil Sells its Peruvian Operation
Source: www.gulfoilandgas.com 10/31/2014, Location: South America
Interoil Exploration and Production ASA has entered into a conditional agreement to transfer ownership of its oil exploration and production activities in Peru to United Oilfield Inc., a company registered in the Republic of Panama.
Interoil is currently operating Block III and IV in Peru under a 12-month contract that expires in April 2015. The licensing authority in Peru has initiated a bid round for a 30-year license for these blocks. As previously communicated Interoil is not qualified to bid on these blocks and Interoil Peru therefore does not represent any value for Interoil. The new owner of Interoil Peru expects to be a qualified bidder and will participate in the upcoming bid round.
"With this transaction we are able to discontinue our business in Peru in an orderly fashion while increasing the chances of our Peruvian employees to continue to have employment on Blocks III & IV", Thomas J. Fjell, CEO of Interoil said.
The agreement will not have any cash effect or material impact on Interoil's financial position. The agreement is conditional upon approval from Interoil bondholders and the ambition is to close the transaction before the end of 2014.
