SIGNING OF CONFIDENTIALITY AGREEMENT BETWEEN National Petroleum Company PNG (Kumul Petroleum) & Mineral Resources Development Corporation. June 11, 2014, Kumul Petroleum OFFICE, DELLOITE TOWER, LEVEL 7.
SIGNING OF A CONFIDENTIALITY AGREEMENT TO MARK THE PROGRESS OF MEMORANDUM OF UNDERSTANDING DATED 7th NOVEMBER 2013
National Petroleum Company of PNG Limited (Kumul Petroleum) 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.
The companies have identified a promising joint business opportunity which they desire to pursue and develop into a definitive arrangement in accordance with this MOU as follows:
(a) Kumul Petroleum & MRDC will establish a unincorporated joint venture arrangement (“JVA”) under the terms of a joint venture operating agreement;
(b) The Purpose of the JVA is to build and operate the Port Moresby Gas Supply Project comprising of gas supply pipelines and related infrastructure to supply gas procured from the PNGLNG Project to PNG Power and/or IPPs for electricity generation (the project will be described in greater detail under the definitive JVA);
(c) The participating interests, costs/risks sharing, revenue apportioning and operational parameters of the JVA for each of Kumul Petroleum & MRDC will be determined in the relevant joint venture operating agreement.
The companies will now enter into a Confidentiality Agreement under which the companies will exchange certain relevant technical, financial and commercial information they each hold.
Entering into the Confidentiality Agreement is a preliminary step toward concluding the JVA and represents a significant stepping stone toward achieving the aspirations of the parties captured in the MOU.
The Companies have appointed Richard Robinson as Project Director to oversee the development of this joint opportunity. Richard recently held a senior posistion in a significant PNG based Oil & Gas company. He brings to this role many years of valuable Oil & Gas industry as well as PNG specific experience.
Kumul Petroleum is the State nominee with regard to certain Petroleum Development Licenses (“PDLs”) under the Oil & Gas Act which make up the PNG LNG Project and as a result, holds a 16.58% participating interest in the PNG LNG Project.
MRDC is a trustee for and on behalf of affected landowners, provincial governments and local level governments with regard to their respective participating interests in various PDLs and consequently with regard to the PNG LNG Project.