Oil and gas company Oil Search Limited (ASX: OSH) announced today it would look to acquire InterOil Corp for US$2.2 billion. Both companies currently have extensive oil and gas acreage in Papua New Guinea, with the acquisition resulting in the creation of a “major independent PNG oil and gas champion”. Oil Search said on Friday that the proposed acquisition offers "compelling financial and strategic upside potential" for all shareholders. Shares in Oil Search closed up 1.2% for the week. We do not own Oil Search in the investment portfolio.