Royal Dutch Shell Share News (RDSA)

Thu, 26th Jul 2012 19:55

July 26 (Reuters) - Royal Dutch Shell Plc is in talks to buy into liquefied natural gas producer InterOil Corp's Papua New Guinea exploration licenses, Dow Jones reported.

'We have been in talks with InterOil and other interested parties, but we can't say where (they are) going,' Shell CFO Simon Henry told Dow Jones Newswires.

InterOil declined comment on the Dow Jones report and Reuters could not immediately reach Shell for a comment.

Shares of InterOil were up 13 percent at $85.58 Thursday afternoon on the New York Stock Exchange.

In Papua New Guinea, InterOil has petroleum licenses covering about 3.9 million acres.

InterOil, which plans to build a 9 million metric ton a year LNG terminal in Papua New Guinea at a cost of $6 billion, wants to sell a 25 percent stake in the project.

Dow Jones reported that Shell Chief Executive Peter Voser skirted a question on whether Shell was preparing a takeover bid for the Houston-based InterOil.

'It's an interesting play there,' said Voser. 'We have talked to the government, we are looking at it.'

Shell abandoned a bid for Cove Energy Plc, earlier this month. Shell gave no reason for withdrawing, but a source familiar with the bid process said it did not want to overpay.



(Reporting by Thyagaraju Adinarayan; Editing by Rodney Joyce)

(thyagaraju.adinarayan@thomsonreuters.com)(within U.S. +1 646 223 8780)(outside U.S. +91 80 4135 5800)(Reuters Messaging: thyagaraju.adinarayan.reuters.com@reuters.net)

COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.