Rubiales Signs Asian Farm-in

Pacific Rubiales has agreed to purchase up to 10% of an onshore oil project in Papua New Guinea for as much as $345m, it says. The Canadian-Colombian oil company is to pay the InterOil Corporation $116m up front, to be followed by the funding of an agreed exploration work program, and cash payments based on the independently certified resources of the project, known as Triceratops. In all, the investment could reach $345m. Interoil remains the operator of the project, though Pacific Rubiales will have an active advisory role. It expects to fund its share of capital expenditure from its internally generated cash flow. The deal follows last week’s announcement of a $150m agreement to purchase 49% of a Peruvian block from BPZ.