Kumul Petroleum Holdings Ltd. has secured stronger governance and economic protections for Papua New Guinea under an amended agreement with TotalEnergies governing the joint marketing of LNG and gas volumes from the Papua LNG project.
KPHL said it has executed the amended Shareholders Agreement with TotalEnergies covering Lakatoi Marketing Pte Ltd., the Singapore-registered entity responsible for marketing equity LNG and gas volumes from the project.
The agreement strengthens governance arrangements in line with the combined 52.94% majority interest held by KPHL and Mineral Resources Development Co. in Lakatoi Marketing, according to KPHL.
Key reserved matters, including pricing, will require unanimous shareholder consent, while the agreement also introduces stronger protections against potential exposures.
KPHL said the governance structure supports Papua New Guinea's compliance with its World Bank/International Bank for Reconstruction and Development negative pledge obligations, while maintaining balanced commercial participation among the shareholders.
The amended agreement preserves KPHL's decision-making rights and safeguards the state's commercial interests in the LNG marketing arrangements.
It also provides for the rotation of Lakatoi Marketing's general manager every four years and the secondment of KPHL personnel into key positions within the marketing company.
KPHL said these measures are intended to accelerate the transfer of LNG marketing expertise and skills to Papua New Guinean personnel and strengthen the company's long-term institutional capability.
"This outcome protects the State's financial and contractual interests, strengthens Papua New Guinea's participation in LNG marketing, ensuring that governance arrangements properly reflect the State parties' majority interest," KPHL Chairman Ambassador Isaac B. Lupari CBE, GCL, said.
KPHL credited TotalEnergies, particularly Asia-Pacific Senior Vice President Mansur Zhakupov and the company's business teams, for their constructive engagement and commitment to reaching what it described as a balanced and mutually acceptable agreement.
The company also acknowledged Prime Minister James Marape GCL MP and Minister for State-Owned Enterprises William Duma LLM MP for their leadership and support in securing the outcome.
The execution of the amended agreement represents another step toward the Papua LNG project's Final Investment Decision, which is currently targeted for end-November 2026.
Papua LNG is being developed by TotalEnergies and its partners in Papua New Guinea, with the project expected to play a significant role in the country's future LNG production and export capacity.
