Oil Search, which holds a stake in the nearby ExxonMobil-operated PNG liquefied natural gas plant, said on Friday it had issued a notice of dispute to InterOil over the farm-in.
In response InterOil released its own statement saying that any proceedings by Oil Search seeking to prevent the farm-in would be "strongly defended".
Total sealed a 40.1% farm-in agreement with InterOil for PRL 15 this week, however the equity was lower thana provisional agreement reached in Decemberwhich would have seen it take a 61.3%