Five beneficiary groups of the PNG LNG project are now shareholders in Kumul Petroleum (Kroton) Ltd, the special purpose company that holds the State’s 16.57% interest in the PNG LNG Project.
Representatives from the five beneficiary groups signed ‘Unit Application Agreements’ with Kumul Petroleum Holdings Managing Director, Wapu Sonk, for the transfer of shares to the beneficiary groups through the exercising of the Kroton Equity Option using KPHL’s Vendor Finance.
The beneficiary groups include PNG LNG Plantsite, PNG LNG Pipeline, PDL 9 – Juha, PDL 4 – Gobe, and the Fly River Provincial Government.
They join other beneficiaries that have signed already and they are Southern Highlands, Hela, Gulf and Central Province, as well as landowner beneficiary, PDL 5 – Moran, who signed on December 27, 2016.
KPHL stated that although the deadline to exercise the Kroton Equity Option lapsed on December 31st 2016, the beneficiaries had expressed before the due date their interest to exercise the option.
Wapu Sonk congratulated Landowners for signing the agreements, which now confirm their ownership of the shares in the PNG LNG Project.
KPHL says the signing by the representatives does not mean that KPHL or the Government recognise the signees as the genuine landonwers. They said the proper clan vetting process and landonwer identifications will still go ahead so that the genuine beneficiaries are recognised and will recieve what is entitled to them under the Umbrella Benefit Sharing Agreement (UBSA) of 2009.
KPHL will be working with the beneficiary groups to complete the corporate/statutory aspect of the transaction for the beneficiary groups shareholding interest in Kumul Petroleum (Kroton) Limited to be registered.
The Kroton Equity Option is a commercial arrangement entered into between the state and landowners which is expressed under the UBSA.
Under the UBSA the PNG Government granted the landowners and Provincial Governments a commercial option to buy 25.75 per cent (4.27 per cent) of the states 16.57 per cent shares in Kumul Petroleum (Kroton) Limited.
This gives the landowners an additional 4.27 per cent equity in the project apart from the 2.75 per cent free carry equity which is parked under Mineral Resources Development Company (MRDC).
