MELBOURNE, May 20 (Reuters) - Oil Search Ltd OSH.AX has agreed on a takeover offer worth $2.2 billion for its Papua New Guinea rival InterOil Corp IOC.N and said on Friday it would sell part of InterOil's key asset to French giant Total SA TOTF.PA .
"The InterOil board has thoroughly considered this transaction and we believe it delivers significant value to all InterOil shareholders," InterOil Chairman Chris Finlayson said in a statement.
Oil Search is offering 8.05 of its shares plus a contingent value right for each InterOil share, which Oil Search said valued InterOil at $40.25 a share, a 27 percent premium to InterOil's close on Thursday.