Kumul Petroleum Supports PMGH Cancer Centre Structural Works

by PNG Business News - July 29, 2021

Photo Credit: Kumul Petroleum - Prime Minister of Papua New Guinea James Marape has the honour as Trustee of Kumul Petroleum to handover, in a symbolic gesture funds to the value of K10 million to the Port Moresby General Hospital to support the completion of structural works for the Cancer Centre.

Structural works for the Cancer Centre at Port Moresby General Hospital will continue as planned following the boost of much needed funds by Kumul Petroleum Holdings Limited (Kumul Petroleum).

The funding boost by Kumul Petroleum at the value of K10 million will assist with the smooth flow and completion of the Cancer Center structural works after construction had stalled early this year due to a lack of funds. The scoop of work for the completion of the construction includes the roof; upper floor; roof over the banker; including plant room and walls on both ground and first floors.

”Kumul Petroleum is proud to support the structural phase of the Cancer Centre construction works that will house key infrastructure (2 cancer bunkers) that will be important to the health and well-being of Papua New Guineans who seek cancer treatment, said Kumul Petroleum Managing Director Mr. Wapu Sonk.

“Our organisation is passionate about supporting the efforts of the National Governments Strategic Vision to improve healthcare in the country and to see the hospital provide the highest quality of care for all Papua new Guineans, but for this to happen it is important that we have the infrastructure to do so. Hence, our support to this project”.

Dr. Paki Molumi, Chief Executive Officer of Port Moresby General Hospital acknowledged Kumul Petroleum for its continuous support to the hospital and to specialist health care in Papua New Guinea, saying: “Port Moresby General Hospital is working to develop modern, world class facilities, that the designs for the cancer facility is in full compliance with international standards and construction has been professionally supervised to ensure continuing compliance.”

“We are very grateful at Port Moresby General Hospital to receive this funding support from Kumul Petroleum on top of its other commitments. Such support from a national company is vital to the success of this facility and, will help to ensure that we stay on target to complete the facility and begin providing services to the people of Papua New Guinea as soon as possible”.



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PNG Business News - August 30, 2021

Kumul Petroleum Pays Interim Dividend of K100 million to state

Hon James Marape, the Prime Minister of Papua New Guinea, received an interim dividend payment of K100 million from Kumul Petroleum Holdings Limited (KPHL) in Parliament, which was delivered by the Board Chairman Prof Benedict Yaru and the Managing Director of KPHL, Wapu Sonk. When the Prime Minister received the dividend check, he congratulated Kumul Petroleum's Board of Directors and Management for paying such a significant dividend in such a timely manner. The Prime Minister further stated that he expects the Company to pay an additional K200 million to satisfy the entire dividend of K300 million as stipulated in the National Budget for 2021. He said, “My Government has come to recognise that active commercial participation and having a higher Equity interest by Kumul Petroleum as the National Oil Company (NOC) of Papua New Guinea is critical because it captures a significant portion of the lion’s share of the oil and gas proceeds for the country, which otherwise would normally go to the foreign commercial investors while the State waits to collect taxes and royalties which usually are further squeezed by concessions. Equity is King in any Project whether it be Mining or Petroleum or any other type of Projects, hence our push to have a higher stake in all new Projects, Porgera Gold Mine, Ok Tedi etc. “  The Prime Minister said, “Take back PNG is not a slogan without consequence; it is in fact a call to the people of this country to take control of the agenda for the economic betterment of this our country. Taking our nation back requires PNG to have control over its oil and gas sector from exploration through to production and development. This cannot be achieved under the current regime and without a fully empowered National Oil Company (NOC). That’s why my Government is committed to bringing about positive changes to the regime in the form of production sharing in line with international practice which the major oil and gas companies are already used to. This will be the game-changer we have been waiting for.”  To the company’s performance, the Prime Minister said, “Despite the setbacks caused by poor decisions by the past government with the UBS Loan which cost Kumul Petroleum and thus the country about AUD 362 Million (almost a billion Kina) in direct losses, the Prime Minister commended Kumul Petroleum for maintaining a high standard of corporate governance with “unqualified audit reports” for every year since the active operation in 2014. He said the company has every attribute to become like Petronas of Malaysia and make huge contributions to the country if it were left to operate independently like any other commercial entity and without undue interference by the government, which is also how Petronas operates”.  “I am pleased to know that after 696 LNG cargos by end of 2020, and from net proceeds of USD1.644 billion received in 2014 to end of 2020, approximately USD$1.119 billion has been passed onto the State; meaning KPHL has paid to the State the equivalent of 68% of the total distributions received from the PNG LNG Project”.   These remittances to the State are composed of USD$521,900,300 in direct dividends, USD$394,000,000 in return of capital payments (payments to State under Vendor Finance arrangement for Kroton Equity Option), USD$181,000,000 in various forms of taxes to IRC, and USD$23,000,000 on corporate social responsibility projects such as rural electrification projects in the country and the refurbishment and installation of new equipment The Prime Minister further said “We also must not forget that Kumul Petroleum not only preserved the rights of the landowners and provincial governments to the Kroton Equity Option and provide the necessary vendor financing for those options, but Kumul Petroleum also had to accept a reduction of about US$600 Million in the offer price from US$1.0128 Billion, which was a significant dent to its balance sheet. So in fact, KPHL gifted US$600 Million to the landowners and provincial governments of the PNG LNG Project”. The remaining revenues of KPHL have been re-invested in existing oil and gas fields it has cash call obligations to and other related facilities, a state-of-the-art live training facility for the Kumul Petroleum Academy, and retained for looming projects such as Papua LNG and Pasca  Gas Project and related exploratory and studies.   Reference: PNG Facts (19 August 2021). “PNG Kumul Petroleum Holdings Limited Pays an Interim Dividend of K100 million to state”.

Oil and Gas

PNG Business News - September 06, 2021

Kumul Petroleum thanks Government for Pandora Licence

Photo Credit: Kumul Petroleum - Minister for Petroleum, Hon. Kerenga Kua MP, officially announced the award of a fourth Petroleum Retention Licence (PRL) the Pandora License to the Managing Director of Kumul Petroleum, Mr Wapu Sonk on Friday, 03 September 2021. Kumul Petroleum Holdings Limited (Kumul Petroleum) welcomes the government’s decision to award a fourth Petroleum Retention License (PRL) to the national oil and gas company (NOC). This decision comes less than five months after the awarding of three licences. The Minister for Petroleum, Hon. Kerenga Kua, in officially announcing the award, described the occasion as momentous for Kumul Petroleum as Papua New Guinea’s NOC. “In April of this year, I announced the Marape-Basil Government’s support of the decision of the Petroleum Advisory Board (PAB) to grant PRL 48, PRL 49 and PRL 50 covering the Kimu, Barikewa and Uramu gas fields to Kumul Petroleum. Today’s announcement brings the total amount of PRLs awarded to Kumul Petroleum to four”. Minister Kua said the award empowers Papua New Guinea’s own NOC to take a “significant step forward in its mandate” and thereby also fulfils the Marape-Basil Government’s greater vision of ‘Take Back PNG’. He said he as Minister for Petroleum is pleased that our own NOC has technically and financially prepared itself to take on some of the licenses as their terms expire, and also be able to support the Papua LNG, Pasca and other developments like P'nyang when they happen. He expressed confidence in the technical capabilities of the nationals employed by KPHL and urged the NOC to swiftly progress development plans to commercialise these fields and proceed to developing them as soon as possible”. Upon receiving the award of the Pandora License, the Managing Director of Kumul Petroleum, Mr Wapu Sonk thanked the PAB and the Minister for Petroleum for having confidence in the NOC’s capabilities and for recognising the NOC as an important partner in the Government’s ‘Take Back PNG’ vision.  The Pandora license is the fourth PRL that Kumul Petroleum has secured this year, and presents for the NOC the opportunity to put to test aggregation and development concepts which the company has been developing. He said Kumul Petroleum will now be able consolidate these asset and move toward commercialising fields which were previously held by different owners and were otherwise considered stranded, isolated and economically challenging. Kumul Petroleum’s commercialisation plans will include further to drilling of delineation and development wells and project capital investments. Hence to mitigate Kumul Petroleum’s associated risk exposures, the company will look to invite joint venture partners and technical service providers with the requisite technical and financial capabilities who will assume critical roles in the development of these gas fields. Mr Sonk stated that “Kumul Petroleum will commit itself to work with the Department of Petroleum in carrying out the licence conditions. We will also look at the best way possible to commercialise this licence so that it benefits our people who have entrusted us to hold this licence”.   Article Courtesy of Kumul Petroleum

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PNG Business News - April 18, 2022

Government partnership results in official opening of Kumul Petroleum National Heart Centre

Every year, hundreds of Papua New Guinean’s will require life-saving heart procedures as lifestyle related disease and coronary heart disease is among the top ten common cause of admission at the Port Moresby General Hospital. Today, Papua New Guinea’s largest referral hospital, Port Moresby General Hospital (PMGH) officially opens a fully equipped 30 beds cardiac ward with 6 self-contained private rooms that will provide Papua New Guineans specialised medical treatment that was once unavailable in-country given the lack of clinical specialists, equipment, drugs and consumables. With the support from the Government of Papua New Guinea and Kumul Petroleum Holdings Limited (Kumul Petroleum) through a tri-partite agreement between the National Department of Health (NDOH), PMGH and Kumul Petroleum, who as Papua New Guinea’s national oil and gas company allocated K50 million to improve cardiac services within the country; this will be a thing of the past as Papua New Guineans receive life-saving heart procedures such as stenting and angiograms at the Kumul Petroleum National Heart Centre. Dr Paki Molumi, Chief Executive Officer of Port Moresby General Hospital said at the official opening that in recognition of the enormous contribution which makes a direct impact of the lives of Papua New Guineans, the Board of PMGH named the cardiac center the “ Kumul Petroleum National Heart Centre” . Managing Director of Kumul Petroleum Wapu Sonk said that Papua New Guinea’s national oil and gas company was honoured by the recognition of the Board of PMGH and said Kumul Petroleum is very proud to be associating itself with Papua New Guinea’s largest referral hospital in the area of Cardiac Surgery and specialist care that our country has been lacking for a long time. “When we signed the MOA in 2020, and thereafter I iterated that the Board of Kumul Petroleum is very committed to see the spending of the K50 million funding support that we committed, on the right equipment in developing the right skills, and in making sure, the services delivered at the right price to our people. “I am pleased to note from what Dr Molumi has said that this vision has become a reality. Through this partnership with PMGH and NDOH, Papua New Guineans will no longer spend on average up to K200, 000.00-K250, 000.00 to receive the lifesaving cardiac catheterization and stenting procedures they needed to travel overseas for specialist medical care. Since, the first stenting procedure, witnessed by Kumul Petroleum Trustee, Prime Minister Hon. James Marape on 22 July 2021, Papua New Guineans have received this procedure for free then subsequently at a fraction of the cost as of 28 January this year, saving citizens on average 95-96 percent of what will have been spent if they travelled overseas. Today, an angiogram alone and stenting services combined may cost a maximum of K2, 500.00 - K10, 000.00.” “Today’s official opening goes to prove that with joint cooperation with national companies and government partnership is the way forward to realise tangible benefits for our people. Today, celebrates a major policy achievement not only for us as a company, or Port Moresby General Hospital; but for us as a nation following 47 years of Independence where a national facility is funded by our people with returns from investments of our natural resources, equipped, and led by our national staff and doctors.” Minister for Health and HIV/AIDS Hon. Jelta Wong acknowledged the positive results of the partnership by the National Department of Health, PMGH and Kumul Petroleum; praising all parties to the MOA for the achievements thus far, and the opening of the Kumul Petroleum National Heart Centre. Dr Molumi added that further improvements under the cardiac program supported by Kumul Petroleum, are the cardiac outpatient or non-invasive cardiac outpatient which is completed and fully equipped with some of the latest and quality cardiac equipment. They include, Electro cardiogram machines, Echo machines and treadmill machines for stress test ready to be used after this opening. Under the arrangement Kumul Petroleum pays for the equipment which is chosen by the end-users. This has allowed for the purchase of quality branded medical equipment which is available in any modern hospital.    Plans are under way to build an operation theatre complex which will have a specialized cardiac theatre. The cardiac operation theatre once built will complete the cardiac program from Diagnostic Services at the non-invasive cardiac outpatient, Invasive Cardiac Services at the Cardiac Catheterization Laboratory and coronary care unit and admissions to the cardiac ward. This means PMGH will be able provide the full cardiac services from Diagnostic to Cardiac Catheterization and cardiac surgery. That will be replicated to the rest of the country. The Kumul Petroleum National Heart Centre was officially opened by Her Royal Highness, Princess Royal while on a tour of Papua New Guinea on behalf of Queen Elizabeth II on her Platinum Jubilee.   Article courtesy of Kumul Petroleum


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PNG Business News - November 28, 2022

Port Moresby Chamber of Commerce and Industry holds 67th Annual General Meeting

The Port Moresby Chamber of Commerce and Industry (POM CCI) held its 67th Annual General Meeting at the Lamana Hotel on the 24th of November 2022 , present to witness the occasion were its members, executives and various stakeholders.  The meeting was officially opened by the President and Master of Ceremony Mr. Rio Fiocco who gave his opening remarks and report. He thanked all the POM CCI staff for their hard work this year despite the challenges faced by covid and other changes in the administration. Some of their achievements highlighted included the recruitment of two graduate accountants from the IBS University and the employment of its new membership officer. Mr. Rio Fiocco stated that by 2023 the chamber will be working with Total PNG to pre-qualify its members to be contracted to early works stage of the Papua LNG project . "All members who have issues affecting their business can feel free to come and see us so we can lobby for you through NCD or if it  government related we will also lobby for you through the PNG Chamber of Commerce and Industry", said Mr. Rio Fiocco.  The treasurer of POM CCI Ms. Akae Beach presented the chambers Financial Report stating that it had made a net surplus of k114,020 which is a 12% net profit margin despite not recouping most of its membership fees.  "The Port Moresby Chamber of Commerce and Industry Inc is in good financial position and our net asset stand at K1.49m compared with K1.38m last year , a healthy increase of 8 %. Whilst conditions remain challenging , I am confident that the chamber will continue to be in overall surplus in 2022 as we continue maintaining our current strategy ( with an increase focus on both the Corporate and SME sectors) whilst continuous improvement in our financial systems,  increase online and physical marketing efforts and increase member initiatives" stated Ms. Akea Beach. Ms. Akae Beach concluded that she will be leaving the chamber by the end of the year but will still support the chamber within her own capacity. 

Events

PNG Business News - November 27, 2022

​PM Marape, Ministers and star international business speakers headline PNG Mining & Petroleum Conference in Sydney

Prime Minister Marape headlines a star line-up of speakers at the 16th PNG Mining and Petroleum Conference, in Sydney in December, to promote international investment in PNG.   Already over 1000 attendees are registered to attend, as the Conference features a dynamic and engaging program centered around Prime Minister Marape’s announcement of 4 new mega projects and the expected re-opening of Porgera gold mine. Prime Minister Marape will be providing the keynote opening address on Day 1.  He will be joined by Australian International Development Minister Pat Conroy.   Senior executives of the major international investors in PNG, including Newcrest CEO Sandeep Biswas, Harmony Gold CFO Ms Boipelo Lekubo, TotalEnergies Senior Vice President Mr Julien Pouget, Santos President Upstream Mr Brett Darlie and ExxonMobil PNG Managing Director Mr Peter Larden will be providing a global outlook for their companies’ operations around the world, how they have adapted to emerging trends and how their PNG investments fit into their global portfolios.  A highlight will be CEO of Fortescue Future Industries Dr Mark Hutchinson’s presentation of Fortescue’s vision for how green hydrogen can be a gamechanger for the world and PNG’s envisaged role supplying hydrogen to the world.   Day 1 concludes with a session featuring former Australian Foreign Affairs Minister, the respected Julie Bishop, presenting her view as to why Australia needs to invest more in PNG, and PNG’s Trade and International Investment Minister Richard Maru outlining the PNG government’s vision for investment and development in non-mining sectors.  Each session on Day 1 will feature panels moderated by well-known Australian media personality Ms Ticky Fullerton. Day 2 of the Conference features policy statements by Mining Minister Ano Pala and Petroleum and Energy Minister Kerenga Kua, presentations by Kumul Petroleum and MRDC, project updates on all of PNG’s existing mining and energy projects, and the presentations of the next wave of resource and energy projects – Papua LNG Project, Pnyang LNG Project, Pasca Gas Project and Wafi Gold-Copper Project.   Day 3 of the Conference features a unique 3 stream format focused on varied themes including Exploration growth, Climate Change & Energy, Improving Ease of Business, Infrastructure, and Business Success stories.  Day 3’s program features a significant list of speakers including heads of government regulatory agencies, CEOs of various PNG and international businesses, and includes international institutions such as the IFC.  The Conference concludes with a session that focuses on PNG success stories where resource revenues have been invested for future benefit, and a presentation on the importance of the PNG Sovereign Wealth Fund.  “It’s an engaging and dynamic Conference program with a high-profile cast of speakers. I am very grateful for the support that the Prime Minister has provided to the Conference, and the unprecedented participation of Government Ministers and heads of departments and agencies as speakers.  Industry and the PNG Government are presenting a united front in promoting PNG as an international investment destination at the Conference.  We are pleased that we can work with the Government in this regard.  The Prime Minister will be in a unique position in our history by speaking about the advancement of 4 major projects, and the potential doubling of PNG’s GDP in the near future, which can usher in significant economic benefits for our people.” Said Mr Anthony Smaré, President of the Chamber of Mines & Petroleum. “We are also very fortunate that so many high-profile leaders from some of the world’s largest companies have taken time out to come and speak at the Conference to outline why they believe PNG is an important place to invest in.  Australian Minister Pat Conroy’s speech will give us an indication of Australia’s view of PNG’s importance. I am personally looking forward to the afternoon session on Day 1 when Julie Bishop will present her view as to why Australia needs to invest more in PNG, and Minister Richard Maru will challenge international companies and countries to invest more into the PNG Government’s investment priority areas such as infrastructure and agriculture.”  “Over 1000 people are now registered to attend the Conference, but there is still some seats left, so I encourage business people not already registered, to quickly secure their seats at www.pngconference.com over the next few days.  The Conference is unique because you can meet everyone who has a role in PNG’s resources and energy sector - Government policy makers and regulators, the business movers and shakers, landowners, financiers, investors, suppliers and contractors from all over the world – all in one place over three days from 5 to 7 December 2022 at the Sydney Hilton Hotel.”

Agriculture

PNG Business News - November 27, 2022

PM Marape supports development of oil palm industry on a massive scale in PNG

Photo: PM Marape and Governor Bird in discussions with representatives of Pacific Elite Palm Oil Group in Singapore on Monday (November 21, 2022). Prime Minister Hon. James Marape has given his support to development of the oil palm industry in Papua New Guinea on a massive scale. PM Marape gave his support after he and East Sepik Governor, Hon. Allan Bird, met with representatives of Pacific Elite Palm Oil Group in Singapore on Monday (November 21, 2022). The company currently runs an oil palm project in East Sepik, which it wants to emulate in all provinces, saying that it will be an economic gamechanger for the whole country. The company aims to create the largest agriculture-based wealth in the South Pacific, as well as generate electricity for PNG, using oil palm. Governor Bird told PM Marape that if a long-term oil palm development plan was drawn up, with the aim of economic independence for PNG, one million hectares of oil palm grown all over PNG would bring in an extra K100 billion for the country. “We can double our GDP just from palm oil,” he said. “If we go into downstream processing, this K100 billion could double, so that we could be earning K200 billion on top of our current GDP. “The other flow-on to the economy is power production that fits into the grid, carbon credits, increased cattle production, as well as jobs. “Palm oil is amazing because you can do so much with it, including green energy, which can be generated from the waste of palm oil. “If we have 33 operations throughout PNG, similar to what we are doing in East Sepik, 100,000 jobs would be created “This is brilliant.” Governor Bird told PM Marape that oil palm, when made into biofuel, would save the country millions of kina. “If we produce enough palm oil, we don’t need to go out and buy fuel, as we can produce our own,” he said. “It can also bring inflation down as we are no longer importing inflation. “I’m excited because it provides us an escape plan from all these things that are affecting us.” PM Marape welcomed the proposal by Pacific Elite Palm Oil Group and the ideas of Governor Bird, who has helped to grown the vanilla and cocoa industries in East Sepik, and PNG. “As regards expanding nationwide, I invite you to come to Port Moresby, and I will run the investment figures past the super funds and Kumul Consolidated Holdings,” he told the company’s spokesperson Alexander Tho. “A family of investors can easily mobilise the money required for the project. “I also want you to have a stake in the business, and run it, as we cannot do it on our own, in like what Barrick is doing at Porgera Mine.”

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