State Owned Enterprise Minister, William Duma, expressed satisfaction with the finalisation of the finance arrangements for the purchase of an additional 2.6 percent equity in the PNG LNG Project.
Minister William Duma said: “I am glad that Kumul Petroleum has been able to raise sufficient funds for the purchase of an additional 2.6 percent interest in the PNG LNG Project from Santos.
“The acquisition of this additional equity increases PNG shareholding in this LNG Project, which will have a long-term benefit for the country.”
Minister Duma outlined that the PNG LNG Project had a long life – in fact, until 2065 – since the Papua LNG Project will use the existing PNG LNG Project plant to earn a tolling fee from processing gas from the forthcoming Papua LNG Project.
The SOE Minister stated: “Financing documentation for this equity acquisition arrangement will be complete by 31 January, 2024. The transaction is in line with the Marape-Rosso Government’s strategic ‘Take Back PNG’ approach to development of the country’s natural resources.
“Although this exercise has taken longer than expected, it is important that this additional equity has now been acquired, ensuring a greater national long-term income from this foundation LNG project, which will benefit the State directly.
“It will also enable Kumul Petroleum to strengthen its balance sheet and cash flow to participate in the Papua LNG Project, develop its operated petroleum licences and expand its developmental and nation-building activities.”