NEC extends Kroton shares acquisition

The National Executive Council has extended the deadline for impacted landowners and LNG provinces to pay for Kroton shares in the LNG Project held by the National Government.

Prime Minister Peter O’Neill revealed this in Parliament today.

“Through the Umbrella Benefit Sharing Agreement which was signed in Kokopo in 2009, the LNG provinces and landowners have the option to acquire 4.27 per cent in Kroton, a direct equity in the PNG LNG project.

“Under the agreement, the landowners and provincial governments will pay the State close to US$1.1 billion for 4.27 per cent equity in Kroton.

“We know that the landowners and provincial governments face challenges in arranging finance to fund the acquisition of this asset under prevailing market conditions.

“NEC has approved the deadline to be extended to December 31, 2016, which will be sufficient to raise capital for the acquisition,” O’Neill said.

The five LNG provinces are Hela, Southern Highlands, Gulf, Central and Western Provinces.

Charles Yapumi