Kumul Petroleum Holdings Ltd. (KPHL) has paid a K400 million interim dividend to the Papua New Guinea government, bringing its total direct contribution to state revenue this year to more than K1 billion, including tax payments.
KPHL chairman Isaac Lupari presented the dividend at a ceremony attended by Prime Minister James Marape, Petroleum Minister Jimmy Maladina, State Enterprises Minister William Duma, government officials and the company’s senior management team, led by acting managing director Luke Liria.
The payment brings KPHL’s dividend contributions for 2026 to K550 million, following an advance dividend of K150 million paid in December 2025. The company has also remitted more than K480 million in advance payments tax this year.
Lupari said the payment reflected the company’s financial performance, disciplined management and commitment to generating sustainable returns from the country’s petroleum resources.
“As the national petroleum company, our responsibility is to ensure that the country’s petroleum resources generate tangible and sustainable benefits for current and future generations of Papua New Guineans,” he said.
The latest payment follows KPHL’s K700 million dividend distribution in 2025. The company’s board said further dividends could be considered before the end of this year, subject to operational performance, cash flow requirements, debt obligations and future investment commitments.
Contributions to state revenue
Between 2014 and 2025, KPHL contributed K1.827 billion in taxes and K3.431 billion in dividends to the state, according to the company.
It also recorded K3.463 billion in strategic petroleum investments, including additional equity acquisitions in the PNG LNG project, petroleum development commitments and the establishment of Niu Power Ltd. in partnership with Santos.
The company further contributed K416 million to national development initiatives, including support for ANGAU Memorial Hospital, Port Moresby General Hospital and rural electrification programmes. Another K740 million was allocated to approved infrastructure projects.
KPHL said it had also supported community, education, health and social development initiatives across the country.
Papua LNG financing
KPHL has secured a US$1.1 billion funding package for the state’s 22.5% equity participation in the Papua LNG project, combining domestic financing with cash flow from its 15.1% interest in the PNG LNG project.
A consortium of domestic lenders led by BSP will provide US$300 million, while the remaining US$800 million will come from KPHL’s PNG LNG cash flow between 2026 and 2032.
The company said it had US$180 million available to meet its first cash call in 2026 following the project’s final investment decision.
Lupari described the financing arrangement as a milestone for the country, saying it was the first time in Papua New Guinea’s history that domestic financing of this scale, combined with cash flow from the national petroleum company, had been arranged to support the state’s participation in a major resources project.
He credited Marape and his government for the achievement.
Governance reforms and investment review
KPHL is undertaking an organisational transformation programme to strengthen governance, improve operational efficiency and prepare for future growth, including its participation in Papua LNG.
The reforms aim to increase returns to the state, improve commercial performance, strengthen accountability and tighten oversight of investments and procurement. The company has also introduced enhanced controls covering procurement, approvals, sponsorships, expenditure management and corporate decision-making.
Separately, the KPHL board has begun a forensic review of historical non-core investments and expenditures valued at about K1.2 billion. All non-core projects have been placed under care and maintenance while the review is under way.
The projects being examined include Kumul Tower, a Jet A-1 fuel facility, a fabrication and technical training facility, the construction of a surgical ward at Port Moresby General Hospital and the purchase of a vessel from India.
The review will assess compliance with governance requirements, procurement processes, investment performance, commercial outcomes and value for money.
Lupari said the exercise was intended to strengthen accountability and ensure that future investments aligned with KPHL’s core business and commercial objectives.
“As custodians of strategic state assets, we have a responsibility to ensure that every investment undertaken delivers measurable value and contributes to the nation’s long-term economic interests,” he said.
Refocusing on petroleum operations
KPHL is also reviewing its wider asset portfolio to concentrate on its core petroleum business.
The company said non-core assets could be jointly developed, leased to qualified operators or divested through structured commercial arrangements where appropriate. Potential partners would be assessed on their technical capabilities, operational experience and financial strength.
Lupari said KPHL’s objective was to create sustainable value for Papua New Guineans through the responsible management of national petroleum assets.
“Every dividend we pay, every investment we make and every decision we take must contribute towards the prosperity of our nation. Strong financial performance must be matched by strong governance, accountability and transparency,” he said.
He added that the company would continue to pursue disciplined growth, strengthen governance and support the government’s development agenda while seeking long-term returns from the country’s petroleum resources.
