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Total SA may opt out of competition with ExxonMobil in a bid for ownership of the InterOil's 36.5 percent stake in Elk-Antelope gas field in Papua New Guinea

Australia:  In order to buy the stakes of US listed InterOil in Elk-Antelope gas field located in Papua New Guinea, ExxonMobil is expected to become the sole bidder for buying the stake after quoting bid of USD 2.2 billion (offering of USD45 per share). The French company Total SA is expected to opt out keeping in view the amount quoted by ExxonMobil.  In order to simplify the ownership of the Elk-Antelope gas field, both companies, Total SA and Exxon Mobil were interested in taking out InterOil's 36.5 percent stake. With takeover of InterOil, ExxonMobil will expand its existing PNG LNG plant using gas from Elk-Antelope field. ExxonMobil produced 7.4 million tonnes of LNG in 2015 and the companies interest in the stake lies behind the fact that Papua New Guinea is well-positioned to export gas to Asian markets where demand growth is the highest.

TechSci Research depicts that the takeover of InterOil will help either of companies to expand their existing LNG facilities or build new LNG plants which will boost the natural gas compressors demand in Papua New Guinea during 2016-2021.

According to TechSci Research report, “Global Natural Gas Compressors Market By Technology, By Application, By Region, Competition Forecast and Opportunities, 2011 - 2021”, the global natural gas compressors market is anticipated to cross USD5.5 billion by 2021. On the basis of technology, natural gas compressors are segmented into two categories - positive displacement compressors and dynamic compressors. Among these categories, positive displacement compressors form the most preferred natural gas compressors category, predominantly due to their low cost and increasing use in gas gathering and processing. However, in the recent years, majority of the upstream and midstream companies are inclining towards dynamic compressors due their higher efficiency and low maintenance compared to positive displacement compressors.    

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