The PNG Government has awarded 100% ownership of three Petroleum Retention Licenses (PRL) to Kumul Petroleum Holdings Limited (KPHL).
These include PRL 48, 49, and 50 of the already discovered gas fields of Kimu, Barikewa, and Uramu.
The three fields have a best estimate of contingent resources (2C) of slightly over 2 trillion cubic feet (tcf) of gas with approximately 50 – 60 million barrels condensate.
Minister for Petroleum, Kerenga Kua, today presented the licenses to KPHL Managing Director, Wapu Sonk.
PRL 48, 49, and 50 represent the already discovered gas fields of Kimu, Barikewa and Uramu, in which KPHL will work towards developing.
Kimu and Barikewa are both onshore fielda while Uramu is offshore in the waters of Kikori in Gulf Province.
Minister Kua said this was a historic occasion as KPHL has been awarded full ownership of the licenses, after they had expired with the previous licensee.
“This is an important step forward as we realise the potential of our world-class natural resources. It shows that our policies are working and allows the Government through the guidance of the Department of Petroleum to allocate assets and licenses to the right developers and in particular looking for a greater share of the benefits from our resources when the licenses expire and the rights return to the State.”
KPHL thanked the Government for awarding them the license after the initial license for the fields expired.
He said KPHL is in a strong financial and technical position to develop the fields.
“I thank the Petroleum Advisory Board (PAB) and Minister for coming to this decision, which demonstrates their confidence in the country’s National Oil and Gas Company, which is ready now to lead in development of our resources after last Ten Years of being a passive investor in PNGLNG Project and other developments.
“At Kumul Petroleum, we take seriously our responsibility to move forward quickly so the assets can begin generating returns for the nation. We are looking forward to getting them started but will only do so on good commercial terms, which deliver substantial benefits to Papua New Guinea and its people.
“Our focus now is on developing commercial strategies for the PRLs, so we can work towards bringing them to market.
“This is another milestone for our company and the country, as we continue to work to develop our excellent resources and support the world’s transition away from coal. Papua New Guinea has some of the world’s best natural gas assets, which KPHL is committed to developing with local people and businesses, the Government and global partners.”
Wapu Sonk says KPHL will find cost effective ways to commercialise the fields.
“We will explore cheaper and more cost effective ways to commercialise this fields not only in LNG and gas production but downstream processing, Power Generation, Quicklime and Cement production etc.
He added ““At Kumul Petroleum, we take seriously our responsibility to move forward quickly so the assets can begin generating returns for the nation. We are looking forward to getting them started but will only do so on good commercial terms, which deliver substantial benefits to Papua New Guinea and its people.
“Our focus now is on developing commercial strategies for the PRLs, so we can work towards bringing them to market.
“This is another milestone for our company and the country, as we continue to work to develop our excellent resources and support the world’s transition away from coal. Papua New Guinea has some of the world’s best natural gas assets, which KPHL is committed to developing with local people and businesses, the Government and global partners.”
A PRL has a duration of five years while the license holder can renew for up to 15 years.