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Kumul Petroleum presents specialist medical equipment to Cardiac Intensive Care Unit
by PNG Business News - July 15, 2021
On 19 August 2020, Kumul Petroleum Holdings Limited (Kumul Petroleum) signed an MOA with the Ministry of Health and Port Moresby General Hospital to support the improvement of the Port Moresby General Hospital National Heart Centre.
Nine months later, Kumul Petroleum follows through on this commitment with the presentation of the first set of specialist medical equipment to the value of K656, 505 to the Cardiac Intensive Care Unit of the Port Moresby General Hospital.
Managing Director of Kumul Petroleum Wapu Sonk said the specialist equipment, purchased by the organisation with consultation by specialist doctors at Port Moresby General Hospital’s Cardiac Intensive Care Unit will support the treatment of Papua New Guinean’s who suffer from heart disease and other lifestyle diseases that result in heart attacks.
According to Dr Paki Molumi, Chief Executive Officer of Port Moresby General Hospital as of beginning of 2000 the Internal Medicine hospital admission data beginning to showed significant shift from predominantly Infectious Diseases to almost equal with Life Style Disease. And these Life Style Disease includes Hypertension, Cholesterol, COPD or Chronic Obstructive Air ways Disease, Diabetics, Kidney Disease, Cancer, CVA-Stroke and Coronary Artery Disease.
Hypertension will associated with high cholesterol, Diabetic and they result in either Heart Attacks (CAD), CVA-Stroke or Kidney Disease, so the patients have more than one of these disease together.
“The three years hospital admission statistics is quiet obvious that though TB and HIV maybe still the leading causes of hospital admission there is truly huge surge in Life Style Disease to almost equal in hospital admission. Therefore the Port Moresby Cardiac Services both “ Non-Invasive and Invasive is a really a big need for every Papua New Guinean.”
To bolster its efforts in managing the multi-million kina project with the Ministry of Health and respective specialist centres including ANGAU Cancer Services, Kumul Petroleum has established a charitable arm, the Kumul Petroleum Foundation to oversee the projects to its fulfilment.
Chief Executive Officer of Kumul Petroleum Foundation William Bando who was present at the presentation acknowledged the need for specialist healthcare to receive equipment that will address the growing need for attention to cardiac intensive care.
On this occasion, Kumul Petroleum acknowledged the leadership of health workers to ensure that they continue to serve the health needs of communities and said that this initiative is a part of the greater contribution by Kumul Petroleum to support the health sector combat and contain the threat of COVID-19 by ensuring that there are specialist equipment at major hospitals in the country.
PNG Business News - May 03, 2021
Kumul Petroleum Holdings Seeking Funds from Abroad
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.
PNG Business News - July 08, 2021
KCH Has A Good Understanding of SOEs: Kavanamur
Image: By Kate Uvia David Kavanamur, chairman of Kumul Consolidated Holdings (KCH), said the company has a good understanding of the financials and debt structure of state-owned companies (SOEs). He said this in response to an update on SOE reforms, which included the situation of SOEs that had struggled to be profitable for the previous 20 years. “We feel that we are getting a good handle on the current status of SOEs’ financials and debt structures with a view to restructure debt and recapitalise the business,” he said. “We have completed our five-year SOE strategy which will go to Cabinet before release. “As pointed out, the status of SOEs has been well known for the last 20 years and there is no surprise. “The only surprise will come when we turn them around and we have just started on that journey.” KCH managing director Isikeli Taureka previously stated that SOEs' total assets were about K6 billion, but only about K65 million was paid out in dividends each year and that SOE reforms were in the works to address this. Taureka stated that the government was trying to sell non-profitable businesses. He stated that the National Executive Council (NEC) had approved the sale of non-core state-owned companies that did not generate any money. According to Taureka, the NEC had authorized the change, which was backed by the Asian Development Bank with a loan of K500 million over three years. The NEC decided on SOE reform as well as debt-free financing. “The NEC decisions allow us to go through the reform, selection process, better boards, better management selection process, returning to a sound financial footing and delivering services,” Taureka said. Reference: Luma, Dale. The National (7 July 2021). “Kavanamur: State entities scrutinised”.
PNG Business News - July 22, 2021
Oil Search Considering Merging with Santos
Santos, an Australian oil firm, announced its plan to combine with Oil Search Limited. Santos proposed a non-binding indicative merger last month with the goal of making the two companies the regional energy champions. The proposed merged entity has a market capitalization of A$22 billion (K56 billion), putting it among the top 20 ASX-listed companies and the top 20 global oil and gas companies. This means, among other things, that the merger will have a diverse portfolio of high-quality, long-life assets spanning Australia and Papua New Guinea, a solid balance sheet with ample cash to support expansion choices, and an investment-grade credit rating. The merger plan, if approved, would be conducted through a Scheme of Arrangement in which Oil Search shareholders would receive 0.589 new Santos shares for each Oil Search share held, according to Santos in a market disclosure to the Australian Stock Exchange. Following the scheme's acceptance, Oil Search shareholders would control 37% of the combined company, while Santos shareholders would own 63%. Based on Santos' closing price on June 24, 2021, the ownership ratio suggested a transaction price of A$4.25 (10.92) per Oil Search share. This was a 12.3% premium to the Oil Search closing price of A$3.78 (K9.72) on June 24, 2021, and a 9.8% premium to the Mubadala block trade selling price of A$3865. (K9.92). Kevin Gallagher, managing director and chief executive officer of Santos, said the merger will bring more alignment to PNG, allowing for the development of important projects such as Papua LNG, as well as the creation of new employment and support for the local economy. Santos, according to Gallagher, has proposed a true merger in which ownership of the combined firm is based on proportionate contribution and value. “The strategic rationale for a merger is clear and offers superior value to Oil Search shareholders rather than continuing on a standalone basis. “Santos continues to believe that the Merger Proposal represents an extremely attractive opportunity to deliver compelling value accretion to both Santos and Oil Search shareholders.” Oil Search stated in its ASX market update that it is open to receiving and engaging with any proposal that is in the best interests of its shareholders. While the company's board of directors agrees with Santos that combining the two firms makes strategic sense, the conditions must be fair to the company's shareholders, which the terms proposed by Santos are not. Despite Santos shareholders holding 70% more shares than Oil Search shareholders, Oil Search maintains that the proposed conditions provide just a 6.8% premium based on Friday's closing share prices for Oil Search and Santos. According to the firm, no such proposal has been made at this time. Reference: Post-Courier (21 July 2021). "Oil Search Open To Merger with Santos".
PNG Business News - July 21, 2021
Study Says Sweet Potato Growers Have Received Significant Insights into Customers Buying Habits
In Papua New Guinea (PNG), sweet potato (kaukau) growers have received significant insight into customer buying habits, which is assisting them in identifying new market possibilities. The recent market analysis, which was supported by the Papua New Guinea-Australia Partnership and conducted by the Australian Centre for International Agricultural Research, revealed that an increasing number of consumers in Port Moresby prefer to buy fresh produce from supermarkets, citing convenience and safety as reasons. While this trend may result in fewer consumers at conventional farmer markets, PNG and Australian experts believe it may open up new marketplaces for rural people. “Farmers are looking for stable markets where they can receive more consistent prices for better-quality produce,” said Professor Philip Brown from Central Queensland University (CQU), who is leading the research project. “The research shows that consumer behaviour is likely to support an expansion in the supermarket sector in large urban centres and this is positive news for the farmers. This could allow commercial focused farmers to secure more stable market access.” The study of 353 customers was conducted as part of ACIAR-funded sweet potato research sponsored by CQU and the PNG National Agriculture Research Institute (NARI), which aims to improve sweet potato value chains by increasing the quality of harvested roots. Sweet potato quality and production are improving, resulting in increasing supplies to retailers eager to provide better fresh produce. “The project, with support from the Fresh Produce Development Agency and NARI, is helping farmers to build their business skills and connect with emerging supermarket opportunities,” said Professor Brown. Kirt Hainzer, a CQU researcher who collaborated on the survey alongside NARI researchers, said it was the first study to look at customer behaviour and see what role stores may play in the development of PNG's commercial sweet potato sector. “The research sought to better understand and compare how consumers buy staples from open markets and supermarkets and to explore the preferences for purchasing staple foods as supermarkets increase the availability of convenience staples like rice,” said Hainzer. “Although expanding formal sales represents a huge step forward in developing a commercial sweet potato industry, continued research on consumer preferences and the market for fresh produce will help better understand trends in staple food purchasing and what market opportunities exist for growers.” With over a hundred kinds of sweet potato in the nation, NARI economist Raywin Ovah said the study sought to find out which of these customers preferred. “Not all the varieties are preferred from a consumer point of view. There are only a few that consumers want to be based on the taste or health properties and that is what we want to also find out. Farmers can be provided with that information, so they produce those varieties that the market wants.” One of five initiatives under the Transformative Agriculture and Enterprise Development Program is a project to increase commercial sweet potato production and commercialization in the PNG highlands. The ACIAR program, which is funded by Australia in collaboration with the government of Papua New Guinea, aims to improve the livelihoods of rural men and women through private sector-led development, increased agricultural productivity and quality, and the development of individual and institutional capacity. Reference: Loop (20 July 2021). “Study looks into sweet potato industry”.
PNG Business News - July 21, 2021
Garry: MRA Evaluating K50 Billion Worth of Investments
According to managing director Jerry Garry, the Mineral Resources Authority is evaluating more than K50 billion in investments in the country. Wafi-Golpu, Frieda River, and Woodlark are among them. “We are also looking at the Central Lime and Cement,” he said. “If that project comes on-stream, it will be one of the first industrial mines ever built in the country.” Garry was speaking at a Port Moresby consultation session on the Mine and Works (Safety and Health) Bill 2021. PNG, he added, was home to some of the world's largest mines. “We have grown from strength to strength,” he said. “If you compare the Bank of PNG statistics, the mining sector alone, in terms of production, has exported over K17 billion in 2020 and 2019. “So it’s a huge industry that we are trying to regulate and manage.” Garry expressed gratitude to the industry for making safety a primary priority. “They have been taking health and safety at the workplaces very seriously,” he said. “We must not only consider (the workers) and the environment but also people living around the (areas) we operate in. “And if we are using any hazards, we must also take responsibility.” The newest mining methods in Wafi-Golpu, known as block cave mining, are one of the new things to expect, according to Garry. “New mining hazards will come with this new mining method,” he said. Reference: The National (20 July 2021). “Authority assessing investments worth K50bil”.