Exxon Mobil Corporation (NYSE:XOM) has fought off other bidders to acquire resources driller InterOil for US$2.5bn.
The acquisition will see Exxon add a gas field to expand exports from Papua New Guinea, better positioning it to meet the Asian demand for liquefied natural gas.
It outbid a US$2.2mln offer from Oil Search and Total.
InterOil owns a 36.5% stake in the Elk-Antelope gas field, operated by Total.
The acquisition will give Exxon interests in six licenses in Papua New Guinea covering about 4mln acres.
Oil Search said it and Total agreed that letting Exxon takeover would help speed up development of the Elk-Antelope field.
Exxon said it will pay InterOil shareholders US$45 per share in stock as well as making an additional cash payment based on the size of the Elk-Antelope field.
That payment is worth US$7.07 per share for each trillion cubic feet equivalent of certified gross resource from the field.