By Delly Bagu – EM TV, Port Moresby
The National Petroleum Company of Papua New Guinea (NPCP) has increased its assets with major purchases in the hydrocarbon sector.
The expansion of the NPCP’s portfolio was achieved through the acquisition of Cue PNG Oil Company at a cost of US$7 million.
This is the state-owned entity’s first major commercial transaction outside of its PNG-LNG Project-related transaction.
At a media conference on Monday afternoon, 29 December 2014, managing director of the NPCP, Wapu Sonk, announced major purchases, growing the company’s portfolio.
The NPCP purchased 5.57 per cent of PDL 3 South East Gobe, 3.29 per cent of South East Gobe Unit, 14.89 per cent of PRL 9 Barikewa, and 10.94 per cent of PRL 14 Cobra, Lehi and Bilip.
Mr Sonk said the acquisition is in line with the company’s focus on developing the opportunities within the hydrocarbon sector.
When asked about the concerns of low oil prices on the global market and the potential drawbacks, Mr Sonk said he was confident that prices will pick up again.
He explained that the fair market value of the portfolio is significant, adding there are several options available to monetise the gas-for-power generation, export and petrochemical activities.
The transaction is subject to final government approvals. The NPCP is the State’s nominee in the ExxonMobil-operated PNG-LNG Project, having 16.57 per cent participating interest.