Kumul Petroleum Holdings has announced that it has finalised agreement with Santos to purchase a 2.6% equity interest in the PNG LNG Project for US$576 million, plus US$160 million share of project debt.
Kumul Petroleum’s managing director, Mr Wapu Sonk said, “This transaction is the culmination of many months of discussions that have taken place with national and international financiers since the NEC gave its initial approval for KPHL to acquire additional equity in the PNG LNG Project in September 2022.”
“The PNG LNG Project is a mature, profitable and de-risked petroleum project that has consistently operated above its nameplate capacity and which has many more years of commercial life left as additional gas fields are brought on line.”
Mr Sonk explained that on completion of the sale of the 2.6% equity in the PNG LNG Project to Kumul Petroleum, Santos had agreed to grant KPHL a Call Option to acquire a further 2.4% interest in the project, and that this Call Option must be exercised on or before 30 June 2024.
“The total purchase price for Kumul Petroleum to exercise the Call Option will be US$524 million, plus US$145 million share of project finance debt. At the end of this process Kumul Petroleum will have acquired an additional 5% equity in the PNG LNG Project.”
” Kumul Petroleum has ensured that entering into financing arrangements to acquire additional equity in the PNG LNG Project will not affect its financial capability to take up the State’s full 22.5% equity entitlement in the forthcoming Papua LNG Project and also continue to pay annual dividends to the State, in line with our annual operating plans,” said Mr Sonk.
“Kumul Petroleum has thanked the Prime Minister, Minister for State Enterprises, Hon. William Duma and all the members of the NEC for their support during the process to close this transaction.”
Mr Sonk concluded, ”Kumul Petroleum, as the national petroleum and energy company, is fulfilling its vision statement, which is to build the nation through its energy resources. We must balance long-term commercial investments and consequent sustainable income streams with our ability to support the National Government to achieve its development priorities as outlined in the Medium Term Development Strategy and Vision 2050 plans.”