More beneficiary groups exercise option

Five beneficiary groups will sign instruments agreeing to exercise the Government offered vendor finance to acquire the Kroton equity Option today.

The beneficiary groups are from PNG LNG Plant site, PNG LNG Pipeline, PDL 9 – Juha, PDL 4 – Gobe, and the Fly River Provincial Government.

The beneficiary groups will sign the agreement with Kumul Petroleum Holdings Limited Managing Director, Wapu Sonk, in Port Moresby

Sonk announced this week (Tuesday) that the five beneficiary groups expressed interest to sign the agreements for the share transfer documents as well as the vendor note

The five beneficiary groups  have already signed to exercise the option and they are the four provincial governments of Southern Highlands, Hela, Gulf and Central Province, as well as landowner beneficiary, PDL 5 – Moran, who signed on December 28th 2016.

The option to acquire shares in KPHL (Kroton No 2) is one of the benefits agreed to by the PNG Government and set out in the Umbrella Benefits Sharing Agreement (UBSA) in 2009 for landowners and Provincial Governments along the footprint of the PNGLNG Project.

Under the UBSA, the PNG Government granted the landowners and Provincial Governments a commercial option to buy 25.75% of the shares in Kroton No 2 Limited, the special purpose company that holds the State’s 16.57% interest in the PNG LNG Project.

Loop file photo

Author: 
Cedric Patjole