INTEROIL EXECUTES DEFINITIVE JOINT VENTURE OPERATING
AGREEMENT WITH MITSUI ON CONDENSATE STRIPPING PROJECT
MITSUI EARNS OPTION TO ACQUIRE UP TO 5% OF ELK
AND ANTELOPE FIELDS AND 5% IN LNG PROJECT
Cairns, Australia and Houston, TX -- August 04, 2010 -- InterOil Corporation (NYSE: IOC) (POMSoX:
IOC) today announced that a Joint Venture Operating Agreement (“JVOA”) for the Company’s proposed
Condensate Stripping Plant (“CSP”) has been finalized with Mitsui & Co., Ltd. (“Mitsui”). The JVOA sets out
the rights and obligations of the participants of the joint venture to develop a CSP at InterOil’s Elk and Antelope
field site in Gulf Province, Papua New Guinea. The JVOA replaces the preliminary joint venture works
agreement announced in April 2010.
InterOil and Mitsui also executed an Option Deed. After reaching final investment decision on the CSP, Mitsui
has options to acquire interests of up to a 5% in the Elk and Antelope fields and in the liquefied natural gas
(LNG) Project on equal terms, yet to be determined, to those agreed with a future industry partner, as follows:
Certain regulatory approvals will be required from the Papua New Guinea State for the options to be effective.
Joint Venture Operating Agreement
Under the JVOA, InterOil and Mitsui will each have a 50% ownership stake, before the State of Papua New
Guinea’s statutory right to acquire up to 22.5% in the CSP. An InterOil subsidiary is the operator under the joint
venture. InterOil expects that the CSP will be designed to process approximately 400 million standard cubic feet
per day (mmscf/day) of wellhead gas with an anticipated yield of approximately 9,000 barrels (bbls) of
condensate per day. Dry gas may be reinjected into the reservoir for storage depending on the timing of the
development of the proposed LNG Plant. The condensate is expected to be barged to the InterOil refinery in
Port Moresby for processing and sale.
1) After mechanical completion of the