PNG LNG Project Delivers Record Revenues to PNG

by PNG Business News - May 22, 2022

Photo credit: PNG LNG

The PNG LNG Project has paid over PGK 14 billion to the State since the start of LNG production. In 2021 alone, the State earned record revenues from the Project, with over PGK 2.2 billion delivered to the government.

Revenues delivered by the PNG LNG Project include PGK 7.1 billion flowing to Kumul Petroleum Holdings Limited and an estimated PGK 4.5 billion in various taxes paid to the Internal Revenue Commission.

“The revenues and associated benefits from the PNG LNG Project provide the PNG government the opportunity to promote sustainable, long term economic development.  We are extremely proud of our performance in contributing to the PNG economy,” said ExxonMobil PNG Managing Director Peter Larden.  “Since 2014 we have delivered over PGK 14 billion to the country, including some PGK 4.5 billion in taxes. This includes the April payment of PGK 1.1 billion in estimated tax for the first four months of 2022 linked to increased global oil prices and sustained volumes. This is one of the largest single tax payments by the PNG LNG Project to date.   We are pleased to see this increased revenue going to the State.”

Revenues from the PNG LNG Project are delivered through different mechanisms, including corporate and payroll taxes, equity (through State participation), development levy and royalties. As a founding member of the PNG Extractives Industry Transparency Initiative (PNG EITI), revenues and benefits from the PNG LNG Project as well as the broader petroleum and mining industry are reported and made publicly available.  Further detail on the types of direct and indirect benefits to PNG as well as the process through which revenues are delivered to the State, provincial government and landowners can be found at https://www.pngeiti.org.pg/.

ExxonMobil PNG Limited (33.2%), a subsidiary of Exxon Mobil Corporation, constructed and operates the PNG LNG Project on behalf of joint venturers: Santos Limited (42.5%), Kumul Petroleum Holdings Limited (16.8%), JX Nippon Oil & Gas Exploration Corporation (4.7%), Mineral Resources Development Company Limited (2.8%).  Petromin 0.2% was incorporated into Kumul Petroleum Holdings Limited (KPHL) in 2016.



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