InterOil has agreed to sell to Total a gross 61.3% interest in Petroleum Retention License 15 (PRL15) which contains the Elk-Antelope gas fields in the Gulf Province of Papua New Guinea, and has also granted Total an exclusive right to negotiate a farm-in to all its exploration licenses in Papua New Guinea. The transaction price depends on appraisal and certification of Elk-Antelope, with illustrative payments of approximately US$1.5bn – US$3.6bn, for a range of 5.4 trillion to 9.0 trillion cubic feet of hydrocarbon gas equivalent. In addition, Total has agreed to make a payment of US$100m per tcfe for volumes over 1 tcfe for additional resources discovered in PRL15 from one exploration well. Any payment would be made at first gas from the proposed Elk-Antelope LNG facility. Total will carry the cost of the drilling for the appraisal well program. The program and certification of Elk-Antelope is expected to be completed in 2015. Total will lead construction of and operate the proposed integrated LNG project, a final investment decision on which will follow reserves certification, basis of design and front-end engineering and design. Total also has an option to take an interest in all of InterOil’s exploration leases in Papua New Guinea (PPLs 236, 237 and 238), which InterOil will continue to operate. Total and InterOil have also agreed to explore other business opportunities both in Papua New Guinea and elsewhere in the Asia Pacific region.