PNG LNG Project

Managing Director Wapu Sonk thanked developer, Santos for their patience and understanding, enabling this transaction to be finalised and its shareholding in this robust LNG project to be increased.

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.

Kilawe highlighted the project's global impact, generating over 8 million tons of liquefied natural gas (LNG) annually, surpassing initial design capacity and contributing PGK 23 billion to Papua New Guinea.

Lanto emphasized the pivotal role of next-gen technologies in the project's triumph. Implementing smart tools, cloud-based technologies, and predictive maintenance has optimized operations, reducing paperwork, saving time, and ensuring efficient resource allocation.

They were challenging the decision of the former Minister for Petroleum and Energy, Dr Fabian Pok, made on the Landowner Beneficiary Identification and Distribution (LOBID) listings on March 09^th 2019.

The LOBID was published in Post Courier Gazette No. G194 on Wednesday, March 13^th 2019, listing the landowners in Warapia and Honaga Clan of Tuguba region in Hides petroleum development license (PDL) 7 in Tari.

The discussions also encompassed the crucial matter of land ownership in relation to the power pylons erected along the route.

Highlighting the urgency of these issues, Prime Minister James Marape emphasized the need for immediate resolution before the anticipated reopening of the New Porgera Mine.

Prominent Hela leaders present during the meeting included Governor Philip Undialu, Koroba-Kopiago MP William Bando, and Komo-Hulia MP Daniel Tindipu.

The discussion ranged around the employment, skills development and impacts the project would have.

The Minister explored how this significant project could provide more jobs, support skills development and boost national productivity.

This was in response to Santos's advice to the ASX that it agreed to continue to deal exclusively with KPHL during the requested extension.

KPHL Managing Director, Wapu Sonk, expressed gratitude to Santos for the extension and for allowing them the opportunity to secure the additional project equity.

He stated that Kumul Petroleum is confident that they will be successful in financing the transaction with support from financiers and by working closely with Santos Limited.

Now in its sixth year, the LCM Award Program celebrated these staff members who show outstanding contributions towards the Em Pasin bilong ExxonMobil long PNG or in English "The way we do things at ExxonMobil in PNG" culture.

ExxonMobil PNG Chairman and Managing Director, Peter Larden, congratulated all the recipients and acknowledged the entire EMPNG team's hard work during the year.

Revenues delivered by the PNG LNG Project include PGK 7.1 billion flowing to Kumul Petroleum Holdings Limited and an estimated PGK 4.5 billion in various taxes paid to the Internal Revenue Commission.

ExxonMobil PNG Managing Director, Peter Larden, stated in a recent report that the revenues and associated benefits from the PNG LNG Project provide the PNG government the opportunity to promote sustainable, long term economic development and are extremely proud of their performance in contributing to the PNG economy. 

The total payment of K33.7m covers K19.7 million cash and K14 million in project component made through the Mineral Resources Development Company (MRDC).
 
Prime Minister Marape said PDL 7 was one of a series of upstream PDLs that had been problematic with ongoing court cases that had affected landowner identification clan vetting, hence, benefits had been accruing in trust accounts since first LNG exports in 2014.