Place your Ad Here!
Kumul Petroleum Holdings Seeking Funds from Abroad
by PNG Business News - May 03, 2021
According to managing director Wapu Sonk, Kumul Petroleum Holdings Ltd (KPHL) will seek funding from abroad to build gas fields in the Kimu, Barikewa, and Uramu in Kikori, Gulf.
He stated that funding would be determined by the form of construction chosen by the group.
Sonk was answering questions two weeks after KPHL received the petroleum retention licenses (PRL) 48, 49, and 50, which included the gas fields of Kimu, Barikewa, and Uramu.
“As a good business practice, KPHL will look to invite potential investment partners into the licences to share the risk and then develop the fields together,” he said.
“Again, the economics of the type of development option drives who join as partners to KPHL.
“There are no other State-owned enterprises (SOEs) in oil and gas business except Kumul Petroleum so we will source funding from overseas mostly from different sources depending on size and type of development.
“The potential partners that join KPHL will also bring the capital, which is a pre-requisite to the partnership for development.”
Those licenses, previously 8, 9, and 10, were owned by Oil Search Ltd, Santos, and other operators, according to Sonk during the handover of the license earlier this month.
“They held the licences for 15 years which is the maximum amount of time you can hold on to a licence under the ‘retention licence’ provisions in the Oil and Gas Act,” he said.
“Once it expired, the licence goes back to the Department of Petroleum.
“The department put out a Gazette notice which is like advertising that the licences had become available, that’s when other interested parties apply.
“We don’t know who applied at that stage, but we applied at that time and was awarded the licences.”
KPHL was among those who asked for the licenses before they expired, according to Petroleum Minister Kerenga Kua.
He explained that the petroleum advisory board made suggestions to the government, which approved and signed off on the licenses to KPHL after thorough deliberation and consideration.
Kimu and Barikewa areas are onshore, while Uramu is offshore in Kikori's deeper waters.
The three fields are expected to have a 2C reserve of slightly more than 2TCF (trillion cubic feet) of gas and 50-60 million barrels of condensate.
PNG Business News - May 12, 2021
Kumul Petroleum Secures Additional 7% in Deal with Total
Kumul Petroleum Holdings Limited (KPHL) has secured a contract for an additional 7 per cent free carried equity in a historic deal with TOTAL SE. Papua New Guinea's national oil and gas corporation, reported an increase in its aggregate equity in potential joint exploration ventures with Total SE following talks in Paris last week to remobilize the Papua LNG Project. Wapu Sonk, KPHL's Managing Director, was delighted to confirm a promising agreement with TOTAL SE for an extra free carried 7% equity in any potential joint exploration ventures, on top of KPHL's 22.5 per cent back-in rights. This ultimately raises the company's total equity to almost 30%. Prospects such as the Deep and Ultra Deep Offshore Exploration Blocks in the newly awarded PPL 576 and PPL 589 Licenses, as well as future joint exploration ventures, will be affected by this agreement. Kumul Petroleum will be able to engage as a JV partner and gain access to vital technical details without having to vote on financial matters, thanks to the 7% free carried equity. The increase was discussed and agreed upon during the latest Papua LNG Remobilization discussions in Paris on May 3, 2021, between the PNG Government Delegation led by Deputy Prime Minister Sam Basil and the TOTAL SE Delegation led by Patrick Pouyanne, Executive Chairman and CEO. Pouyanne praised the efforts of the Marape-led government to increase local involvement in their region. TOTAL SE and the PNG Authorities decided to collaborate to build substantial in-country value and execute the Papua LNG Project in an outstanding manner as part of Total's strategic endeavour to continue cementing relationships with national stakeholders. TOTAL and its joint venture (JV) partners describe the project as a much-needed and timely US$13 billion (PGK 48 billion) capital expenditure (CAPEX) project that will turbo-charge and fuel the PNG economy during this covid-19 pandemic-induced economic recession and add much more in the future. Kumul Petroleum is looking forward to the secondment of its technical personnel to the pre-FEED, FEED, and Detailed Engineering Design phases of the plant, according to Sonk, as part of the increased collaboration between the two organizations. Kumul Petroleum also expects to resume joint marketing activities for LNG entitlements from the Papua LNG Project, and intends to complete effective Sales and Purchasing Agreements (SPAs) in the LNG Industry, he said. By the end of the third quarter of 2022, the parties hope to have completed these SPAs. Another significant benefit of this collaboration with TOTAL, according to Kumul Petroleum, is that the company will be able to exploit their respective strengths for their joint-equity funding option. “We recognise the financial stress and challenges induced by the COVID-19 pandemic and other intervening circumstances in the major markets and will endeavour to leverage our combined synergies to attract major global financial institutions to finance our equity shares. “On this occasion, Kumul Petroleum acknowledges the visionary leadership and foresight of both Delegations, led by the Deputy Prime Minister of Papua New Guinea and Executive Chairman & CEO of Total SE respectively, in pushing the boundaries beyond the current Oil & Gas Act provisions, and securing the PNG government's wishes for greater national participation in resource development projects,” Sonk said. TOTAL's determination and revised contribution to speeding up the Papua LNG remobilization works is also acknowledged by Kumul Petroleum, with the aim of committing the remainder of 2021 to Pre-Front End Engineering Design (Pre-FEED) work and launching FEED in early 2022 in preparation for a Final Investment Decision (FID) in 2023.
Place your Ad Here!
PNG Business News - May 13, 2021
National Airport Corporation to Focus on Redevelopment Projects
The National Airports Corporation plans to devote more resources to the redevelopment projects at Kavieng, Tari, and Mendi airports as part of the Civil Aviation Growth Investment Program. With the exception of three airports, all airports under the CADIP program are on a budget, according to NAC acting managing director Rex Kiponge. Apart from Jackson Airport in Port Moresby, Kiponge claims that the majority of the country's airports are unable to handle the newly launched F100 aircraft. “The introduction of F100 aircraft has deteriorated the condition of runways in PNG. Under CADIP, fencing and runway length deficiencies will now meet the F100 and ICAO requirements. CADIP was implemented to meet the minimum PNG Civil Aviation Rules (CARS) and the International Civil Aviation Organisation (ICAO) standards and recommended practices in all the 22 airports in the country. “The F100 aircraft require a minimum runway length of 1900 metres –– only three airports meet this requirement.” The F100 will be able to land at 12 airports thanks to a CADIP runway length upgrade. Port Moresby is now the only province that meets the operating criteria for F100 planes. Standby control, security fencing, apron parking, runway, taxiway, and apron strength, and a runway length suitable for takeoff at maximum payload are all part of the 22 airport upgrades. Kiponge recently visited the three airports and expressed his satisfaction with the development. Contractors have already finished construction on the security fence at Kavieng Airport, and work on the runway extension is going well. Once the runway extension is complete, the contractors can begin work on the terminal. He mentioned that the runway extension at Tari Airport is complete, and contractors are currently working on the apron, which will be finished until the runway extension is completed. Owing to the contractors' inability to obtain materials for the runway at Mendi Airport, NAC has requested that they redo the runway before moving on to the other areas. “Despite whatever issues within NAC, I will ensure that all 22 NAC’s airports undergoing upgrading will be completed and I will put in a lot of efforts and focus to makes certain work is done well and completed,” Kiponge said.
PNG Business News - May 13, 2021
Govt to Focus on Downstream Processing
The government is putting a lot of effort into encouraging downstream production in the region. This was said by Prime Minister James Marape during a visit to Paradise Foods Company Limited. “We are focused on downstream processing as far as going forward is concerned –– instead of exporting raw products,” said Marape. “We want to go downstream to satisfy our local markets as well as export to economies around us.” PNG is fortunate, according to Marape, to have access to 60% of the world's gross domestic product (GDP) through the APEC network. “As well as, not just the APEC network, but in the vicinity of PNG’s accessibility to markets, we have over 4 billion people from the Pacific, Northern Asia, Western Asia and Northeast Asia put together. “So to satisfy our local markets in PNG for our 8 million-plus people, as well as the opportunity of exporting to markets closest to us like our neighbouring countries.” Marape has stated that he supports downstream production and marketing of PNG's natural resources both locally and internationally. “Today, I am privileged to visit an industry that has been at work since 1945, and I’d like to thank Paradise Foods Company Limited for doing a wonderful job and feeding our country.” Marape promised that the government will help the industry and market.
PNG Business News - May 13, 2021
Mayur Discusses Power Plant Project in Lae
Mayur Resources Ltd says it has formed an ongoing relationship with the State negotiation team to discuss and finalize a power purchase agreement (PPA) for its planned power plant in Lae, Morobe. The organization was waiting for the State negotiation team's makeup to be finalized and signed off, according to managing director Paul Mulder. After that, he said, the Enviro Energy Park (EEP) project's final discussions and negotiations will begin. Mayur's planned 52.5-megawatt EEP project is an advanced power plant that will produce more efficient and cheaper electricity than current solutions by combining conventional thermal energy (sourced from the company's wholly-owned Depot Creek project), solar, and biomass woodchip, while also supplying co-generated steam to nearby industrial users who were burning diesel for their steam needs. The EEP, which is near Lae, will also have steam as a by-product for local industrial uses, and potential dual fuel systems will allow for the use of diesel. “The energy park would balance the need for new environmentally friendly technologies and reliable energy,” Mulder said.