April 16, 2010 (FinancialWire) – InterOil Corp. (NYSE: IOC) said it has entered into agreements with Mitsui & Co. Ltd. to jointly operate and fund the preliminary works involved to develop a proposed condensate stripping facility at InterOil's Elk and Antelope field site in Gulf Province, Papua New Guinea.

The preliminary works program is for all the works required to take the project through the front end engineering and design stage for the construction of a condensate stripping plant, to the point of final investment decision.

According to InterOil, the project is proposed to be designed to process 400 million standard cubic feet per day of wellhead gas with an anticipated yield of around 9,000 barrels of condensate per day.

Dry gas will be reinjected into the reservoir for storage until the proposed LNG facility has been constructed.  The condensate will be barged to the InterOil refinery in Port Moresby for processing and sale.  

InterOil and Mitsui will each be responsible for half of the capital expenditure involved in the preliminary works and Mitsui will fund InterOil's share.

Australia-based InterOil is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 3.9 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea.

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