Kumul Petroleum Holdings Ltd (KPHL) has been granted an extension by Santos until August 31 2023 to finalise arrangements for the acquisition of additional equity in the PNG LNG Project.
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.
Mr Sonk also thanked Prime Minister James Marape and his Cabinet for continuing to support the transaction due to its strategic nature. He explained that the current volatility in international financial markets and high interest rates necessitated the time extension in order to complete the equity acquisition transaction.
KPHL is presently dealing with a number of private sector lenders and Mr Sonk is confident that they will secure an appropriate financing package.
He reiterated that the first priority of Kumul Petroleum is the sustained economic development of PNG’s economy and infrastructure, in which KPHL contributes directly as a player in the petroleum industry and indirectly through its nation-building programmes and payment of Dividend to State.
Mr Sonk emphasized that increasing national equity in the PNG LNG Project is crucial to enhancing the long-term revenue base, influence local content in projects, national development and ensuring that Papua New Guineans benefit from future LNG and other hydrocarbon-based projects.