Kroton Equity Option

90pc signed up for vendor finance: Sonk

Managing Director, Wapu Sonk, told Loop PNG recently that landowners have gone in quietly to sign the agreement and expects to have all landowners’ signatures within the next couple of months.

He said the current economic climate has made it unattractive for landowners to find the money to buy the 4.27 percent indirect interest in the PNG LNG Project.

Last resort for unsigned beneficiaries

Kumul Petroleum Holdings Limited Managing Director, Wapu Sonk, says in a statement that as far as they are concerned, the option has lapsed on the beneficiary groups.

There is however, an alternative to assist them acquire their portion of the Kroton Equity Option.

“As far as KPHL is concerned and strictly speaking, the option lapsed. However, the only thing that saves their interest is a blanket expression of interest to exercise on behalf of all beneficiaries by Mineral Resources Development Company. That may save their interest,” he added.

Gobe PDL 4 reps sign Kroton Option agreement

10 representatives from Zones One, Two, and Three Facilitiy’s of Gobe, signed ‘Unit Application Forms’ which paves the way for their share of the 25.75 per cent commercial interest in the PNG Liquefied Natural Gas (LNG) Project to be transferred to them.

Despite the Kroton Equity Option lapsing on December 31 2016, PDL 4 – Gobe had expressed their interest to sign the agreement before the due date.

KPHL Managing Director, Wapu Sonk, congratulated the landowner’s for allowing representatives to sign so that their commercial shares are transferred to PDL 4 – Gobe.

Western signs vendor finance agreement

Speaking to Loop PNG following the signing, Gesele said he was happy to sign on behalf of the province to finally have a commercial interest in the PNG LNG Project.

He said timing was of the essence after seeing the four provincial governments of Southern Highlands, Hela, Gulf and Central, sign their agreements last month.

“I sought advice from the legal authorities and they told me that because of the urgency, I had to sign on behalf of Western province,” he said.

Beneficiaries sign agreement for share transfer

Representatives from the five beneficiary groups signed ‘Unit Application Agreements’ with Kumul Petroleum Holdings Managing Director, Wapu Sonk, for the transfer of shares to the beneficiary groups through the exercising of the Kroton Equity Option using KPHL’s Vendor Finance.

The beneficiary groups include PNG LNG Plantsite, PNG LNG Pipeline, PDL 9 – Juha, PDL 4 – Gobe, and the Fly River Provincial Government.

Landowners support vendor financing

He said this during signing of documents by the Governors Southern Highlands, Hela, Gulf and Central to exercise the option before the option lapses on  December 31, 2016.

Under the Umbrella Benefit Sharing Agreement (UBSA) of 2009, the Kroton Equity Option represents an option to purchase 4.27 per cent of the states 16.57 per cent equity in the PNGLNG Project, which is held by KPHL.

Interim committee set up for Green Field

It is hoped the interim leadership also exercises the “Kroton Equity Option” to close down their share of the 4.247 per cent indirect interest in the PNG LNG Project.

The Green Field areas represent PDL 1 and 7 (Hides 1 and 4), PDL 8 (Angore), and PDL 9 (Juha) and pipeline segments, and are areas where the clan vetting process has not been conducted to identify legitimate landowners and clans.

Minister for Petroleum and Energy, Nixon Duban, has set up the interim committee’s and it is expected that the Kroton Equity Option will be exercised by the end of January.

Moran and Kutubu landowners sign Kroton Option

Representatives from both beneficiary groups signed the documents to exercise the option entitling them to their share of the 4.27 per cent indirect interest in the PNG LNG project.

Sakai Kei, General Secretary of Namo-Aporo Landowner Association of PDL 2, and Pape Punga, Chairman of the Moran Landowners Association from PDL 5 both signed instruments yesterday.

Under the Umbrella Benefit Sharing Agreement (2009), 76 per cent of the 4.27 per cent Kroton Equity Option is shared among the PDL areas.

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Governors sign Kroton Option

Governors sign Kroton Option

The signing by the Provincial Governments now entitles them to the 4. 27 per cent indirect interest in the PNG LNG Project.

The Governors include William Powi – Southern Highlands, Francis Potape – Hela, Kila Haoda – Central, and Havila Kavo – Gulf.

The signing was witnessed by landowners representatives from the Petroleum Development License and Pipeline areas.