Kroton Equity

Landowners offer K725 million to acquire direct interest in PNG LNG Project

Petroleum Development License (PDL) wellhead and facilities landowners include Greenfield PDL 1, 7, 8 and 9 and Brownfield PDL 2 and 4.

The landowners, whose customary and traditional lands hold and contribute in excess of 95% of the total gas volumes of 10.5 trillion cubic feet (tcf) have formally offered to a purchase price of K725Million ($US 230million) to acquire direct equity ownership and interest of 4.27% from the National Governments 16.58% in the PNG LNG Project.

LNG landowners to raise K3.34b for shares

This arrangement, called Kroton Equity, was done as per the Umbrella Benefit Sharing Agreement (UBSA) signed in Kokopo back in 2009. 

Kroton Equity represents an option to acquire 25.75 percent of the shares in Kumul Petroleum (PNG LNG) Limited, which company holds the State's 16.57 percent participation in the PNG LNG Project.

Kumul Petroleum released a notice through the media on Thursday 31 December for the landowners to purchase the 4.22 percent Kroton Equity.