The objective of Kumul Petroleum is to become Papua New Guinea’s national petroleum entity, and to achieve this Kumul Petroleum has identified and adopted current world’s best practice regulatory principles applied in the resource industry. Kumul Petroleum is committed to observe in its business operations and dealings, transparency and open reporting of its governance policies so that investors and stakeholders make informed decisions and comments to the company’s business practices.
It has been able to and is in the process of establishing internal systems and procedures designed to empower the Board with the confidence to provide strategic guidance for the Company and to give effective management oversight to he Management.
The functions reserved for the Board have been formalized in the Board Manual. This Manual defines the Board’s roles, responsibilities and functions placing expectation that such functions and responsibilities are to be executed with the highest standard of care, honesty and diligence.
The Board’s roles includes inter alia monitoring the performance and progress of the Company towards achieving its agreed strategies and recruit and oversee the performance of the Managing Director who oversees the daily operations and management of the Company.
The Board’s function is to set the strategic direction, ensure that the Management has resources necessary to achieve the strategic plan, monitor performance against the strategic plan, ensure the Company is compliant to the legal, financial, social and environmental obligations; ensuring the Company understands and comprehensively manages its risks and be accountable to its shareholder.
The Company’s Constitution is another key document that provides the necessary guidelines for effective and proper functioning of the Board.
The Board had also approved that a suite of relevant and applicable written policies to be developed to expand on the Board’s governance obligations and risks management and prevention strategies when carrying out its performance.
Such policies include Corporate Governance Statement, Independence and Conflict of Interest Policy, Procedure for Selection and Re-election of Directions, Health and Safety Policies, Employment Policy, Major Investment Policy, Finance Audit Risk Management Policy, Board Performance Evaluation Policy, Social and Environmental Responsibility Policy, Remuneration and Executive Performance Evaluation Policy.
The Company is in the process of developing these policies.