Kumul Petroleum Holdings Limited (KPHL) responded to the announcement that the PNG LNG Project Joint Venture has accelerated the final repayment of the PNG LNG project finance facility, bringing it to a close earlier than expected.
The debt facility is now fully repaid, and the associated loan security is in the process of being discharged and released. Santos’ share of the final scheduled June 2026 repayment — US$363 million — was made in December 2025. The early repayment reduces future interest costs, removes restricted cash requirements on the balance sheet, and provides further flexibility to Santos’ existing strong liquidity position of approximately US$4 billion.
The weighted average debt maturity is now approximately five years, with the next scheduled debt maturity due in September 2027.
“This is a great achievement for the PNG LNG Project, and good news for us at Kumul Petroleum,” Chairman Gerea Aopi said. “Our increased income will strategically flow into and assist us to put together the necessary finance for PNG to take up its mandated 22.5% equity in the forthcoming Papua LNG Project, especially during its four- to five-year construction period.”
“Of course, our future income will still be dependent on world petroleum prices, and in reality this timely announcement actually means no windfall cash, given KPHL’s commitment to the Papua LNG Project, whose FID date is eagerly awaited,” he added.
Aopi noted that KPHL continues to support the government, having recently paid K400 million in dividends to Treasury, as well as supporting impacted landowners and provincial governments through its ongoing vendor financing of Kumul Electorate Office beneficiaries.
He said the Papua LNG Project is a once-in-a-generation, transformational development whose economic, fiscal and social benefits can only be fully realised if PNG maintains a significant equity position.
“The KPHL Board is mindful of and supportive of the government’s development priorities and seeks to pay dividends without jeopardising KPHL’s forthcoming financial commitments, such as those associated with the Papua LNG Project, and our requirement to maintain sufficient liquidity for ongoing activities and contractual obligations,” Aopi said.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said the early repayment, completed six months ahead of schedule, is a historic milestone for Santos and its joint venture partners, including Kumul and MRDC.
“The ability to secure high-quality, long-term project finance made the development of PNG LNG possible, a nation-building project for Papua New Guinea, that has delivered strong and sustained performance since operations commenced in 2014,” Gallagher said.
“Final payment of the PNG LNG project financing facility strengthens Santos’ balance sheet at a time when our major development projects enter production, positioning us to deliver sustainable long-term value for shareholders. As we advance towards a final investment decision for Papua LNG, we expect a significant portion of associated costs to be funded through project finance, leveraging the proven performance of both the PNG LNG project and PNG LNG project financing facility, while being supported by export credit agencies and commercial banks,” he added.
“The KPHL Board is heartened by recent statements from the prime minister confirming the country’s equity participation in the high-priority Papua LNG Project. Kumul Petroleum remains a cornerstone in the development and safeguarding of PNG’s natural resources sector, while simultaneously contributing to the achievement of national socio-economic goals through our nation-building projects,” Aopi said.
KPHL holds a 19.4% interest in the project, while Santos holds 39.9%. The project has delivered strong and sustained performance and benefits to Papua New Guinea since LNG exports commenced in 2014.
