Umbrella Benefits Sharing Agreement (UBSA)

The unanimous call was made by landowner representatives from Southern Highlands, Hela, Gulf, and Central Province.

The landowners made the call during a meeting between them and Kumul Petroleum Holdings Limited, headed by Managing Director, Wapu Sonk.

Though the purpose of the meeting was to inform landowners of the commercial option available for them to exercise their Kroton Option through a vendor finance facility, representatives were more focused on the outstanding issues with the Government on the UBSA.

Prime Minister Peter O’Neill said the National Executive Council (NEC) has approved a discounted Option Exercise Price, which will enable beneficiaries to raise the finance to buy shares. 

Through this they can reap the returns they could expect through dividends from their shareholding in Kroton, the company overseeing the State’s interest in the PNG LNG project.

“The original Option was granted under the terms of an agreement that was reached between landowners, provincial governments and the National Government in 2009,” PM O’Neill stated.