Oil Search's attempt to consolidate its holdings in gas-rich Papua New Guinea could be delayed after a rival bid emerged to its near $3 billion bid for New York-listed InterOil.
Oil Search says it has been notified by InterOil that an unsolicited, conditional non-binding proposal has been put forward by another party.
But the target company's board is still unanimous in its recommendation of the Oil Search offer.
Oil Search announced its proposed takeover in May, with the aim of achieving co-operation and integration of the undeveloped Papua LNG Project, in which InterOil holds a 36.5 per cent stake, and the PNG LNG project, Oil Search's main asset.
Oil Search's interest in the Papua LNG project will increase to 29 per cent under the deal, as it plans to sell 62 per cent of InterOil's exploration assets to French oil major Total, plus a 60 per cent interest in an InterOil petroleum retention licence.
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Total is the main stakeholder and operator of the Papua LNG project.
Oil Search said it still expects to complete the InterOil transaction in the third quarter of 2016.
