The Kumul Petroleum Holdings Ltd aims to explore, pursue and develop business opportunities in the Oil & Gas sector of PNG, and related spin-off industries, maximizing opportunities for Upstream, Midstream and Downstream Commercial Activities as well as direct gains from the PNG LNG project.
Kumul Petroleum is the State’s nominee in the ExxonMobil operated PNG LNG Project (the “Project”) in accordance with the Oil & Gas Act 1998. Kumul Petroleum has a 16.57% participating interest, the 3rd largest, in this multi-field, multi-party, integrated venture having a development cost of over US$19 billion that includes a gas conditioning plant upstream in Hides, a combined 700 kilometres of on-shore and offshore pipeline and a two train LNG plant near Port Moresby. The Project has a nameplate of 6.9 MTPA producing 9 TCF of gas over 20 years.
Kumul Petroleum’s participating interest is determined by the amount of gas committed to the Project from a defined area within its four underlying petroleum development licences (PDL). Kumul Petroleum has a 20.5% interest in each of:
The joint venture owners of the Project are: ExxonMobil (33.2%), Oil Search (29.0%), Kumul Petroleum (16.6%), Santos (13.5%), Nippon (4.7%), MRDC (2.8%) and Petromin (0.2%).
Kumul Petroleum PDL MAP
The four underlying PDLs run their own separate work programs on non Project defined areas within the PDLs. Kumul Petroleum, under the existing joint venture arrangements, supports the operator of each PDL to carry out further exploration and evaluation activities to commercialise non Project gas. Any incremental gas proven may underpin a third train development in the Project.
A summary of licence interest is shown below.
|PDL 1 – Hides
|PDL 9 – Juha
|PDL 7 – Hides
|PDL 8 – Angore
Through its co-ownership in PDL 1, Kumul Petroleum together with the PDL 1 partners, jointly sell gas to the Oil Search wholly-owned and operated gas-to-electricity plant (the “Hides Project”). The Hides Project buys gas from the PDL 1 partners, conditions and sells to the Barrick operated Porgera gold mine.
Kumul Petroleum, together with its partners, is leading a commercial project to purchase gas from the PNG LNG Project and supply the gas to PNG Power or an independent power producer for power generation.
This gas will be processed in a gas conditioning plant situated near the PNG LNG plant site. This will then supply an independent or PNG Power electrical plant powered by gas.
Kumul Petroleum is in close consultation with PNG Power to jointly offer a reliable and cost effective electricity supply to the residents of Port Moresby with the view of expanding to the other centres of Papua New Guinea.
The Port Moresby Gas Supply Project will boost the development of the city and Central Province.
This is a project of national importance and Kumul Petroleum is determined to deliver its mandate given by the State.
Negotiations on gas supply, facilities, and land are on-going.
Kumul Petroleum holdings Limited and PNG Power Limited signed a Memorandum of Understanding (“MOU”) on Friday August 8, to develop interim and long term energy supply solutions for the growing demand of electricity in Port Moresby, and the rest of Papua New Guinea. Read More Here:
Kumul Petroleum holdings Limited
Holdings Ltd and Mineral Resources Development Company Limited (MRDC) signed a Memorandum of Understanding on the 7th of November 2013 which recognises the mutual interest of both companies and their desire to jointly explore, pursue and develop business opportunities in the Oil & Gas sector. Read More Here: