Kumul Petroleum Holdings Limited has finalized its acquisition of additional equity in the PNG LNG Project from Santos Limited.
KPHL managing director Wapu Sonk explained, “Under our agreement with Santos, we made a partial payment of US$352 million earlier this year. The remaining balance will be paid by December 2024, and we have just completed the share acquisition, well before the end of the year.”
KPHL’s shareholding in the PNG LNG Project has increased to 19.2%, which includes a 4.27% Kroton Equity Option shareholding held for its beneficiaries, including impacted provincial governments and landowner groups.
”Kumul Petroleum having an increased shareholding in the PNG LNG Project is clearly beneficial for both the company and the country. The project is expected to be fully depreciated by end of 2024, with project finance fully repaid by 2026. This additional equity is expected to provide high returns immediately and strengthen KPHL’s balance sheet.” Mr. Sonk said.
Mr. Sonk added, “For KPHL, the higher income from the PNG LNG Project means more ability for us to play a greater role in the country’s petroleum and energy sector as well as our ongoing support for nation-building development projects that will improve the lives of all Papua New Guineans.”
He further added, “This acquisition positions the company to prepare to take up its mandated 22.5% equity in the forthcoming Papua LNG Project, whose FID is expected in late 2025, as well as other activities that the company continues to pursue.”
