ExxonMobil is set to buy InterOil in a $2.5bn deal after rival Australian bidders pulled out of the deal.
InterOil owns a one-third stake in the Elk-Antelope gas field in Papua New Guinea which it is planning to explore alongside French energy giant Total. The pair hope bringing the world's largest oil company, Exxon, on board will speed up development at the field.
InterOil shareholders will receive $45 worth of stock in Exxon for every one of their current InterOil shares. Reprots suggest Exxon will also make an additional cash payment to InterOil shareholders after further exploration of the oil field in Papua New Guinea to determine the scale of gas reserves.
The deal was given the green light after Exxon's bidding rival Oil Search refused to improve on its $2.2bn offer lodged back in May.