It's official: ExxonMobil Corp. (NYSE: XOM) said July 21 that it will acquire InterOil Corp. (NYSE: IOC) for more than $2.5 billion.

The two companies have agreed to a transaction in which ExxonMobil will acquire all of InterOil’s outstanding shares.

InterOil owns a 36.5% stake in the gas-rich Elk-Antelope field in Papua New Guinea, which is expected to be the main source for ExxonMobil's proposed Papua LNG project.

Previously, Oil Search Ltd. had agreed in May to acquire InterOil for $2.2 billion. However, the company said on July 21 it would not raise its offer in response to ExxonMobil's bid and its transaction has been terminated.

As part of the acquisition, ExxonMobil will pay InterOil shareholders $45 per share in stock. The company will also pay $7.07 per InterOil share for each trillion cubic feet equivalent (Tcfe) of certified gross resource from the Elk-Antelope field above 6.2 Tcfe and up to a maximum of 10 Tcfe.

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