Shell Eyes InterOil's Assets in PNG

Royal Dutch Shell is in talks with liquefied natural gas producer InterOil to acquire latter’s Papua New Guinea exploration license areas.

"We have been in talks with InterOil and other interested parties, but we can't say where [they are] going," said Chief Financial Officer Simon Henry, Dow Jones has reported.

Papua New Guinea-focused InterOil holds three prospecting licenses offshore the south-east Asian island nation, where early appraisal drilling has revealed vast natural gas reservoirs are located.

The firm also plans to build a 9 million metric ton a year LNG terminal in Papua New Guinea but will need partners to help cover some of the estimated $6 billion required to build a two-train processing plant, Dow Jones added.

It is currently soliciting interest in the sale of a 25% stake in the LNG project.