KPHL SECURES STRONGER GOVERNANCE AND STATE PROTECTIONS IN PAPUA LNG MARKETING DEAL
Kumul Petroleum Holdings Limited has secured stronger governance and state protections in the Papua LNG Project after executing an amended Shareholders Agreement with TotalEnergies for the joint marketing of equity LNG and gas.
The agreement aligns decision-making with the combined 52.94% majority interest held by KPHL and the Mineral Resources Development Company in Lakatoi Marketing Pte Ltd, the Singapore-based entity that will market Papua LNG volumes.
Under the new terms, unanimous shareholder consent will be required for key reserved matters including pricing. The deal also strengthens protections against financial exposures.
“This outcome protects the State’s financial and contractual interests, strengthens Papua New Guinea’s participation in LNG marketing, and ensures that governance arrangements properly reflect the State parties’ majority interest,” said KPHL Chairman Ambassador Isaac B. Lupari CBE, GCL.
The agreement also supports PNG’s compliance with World Bank/IBRD negative pledge obligations while maintaining balanced commercial participation among shareholders.
To build local capacity, the agreement provides for the General Manager of Lakatoi Marketing to rotate every four years and for KPHL personnel to be seconded into key positions. KPHL says this will accelerate the transfer of LNG marketing knowledge and skills.
KPHL acknowledged TotalEnergies Asia-Pacific Senior Vice President Mansur Zhakupov and his team for their constructive engagement. The company also thanked Prime Minister James Marape and Minister for State-Owned Enterprises William Duma for their leadership in reaching the agreement.
The signing marks a major step toward the Papua LNG Project’s Final Investment Decision, which is targeted for the end of November 2026.
