Today, Kumul Petroleum Holdings stated it had finalised all finance arrangements to conclude the purchase of an additional 2.6% equity in the PNG LNG Project.
Kumul Petroleum Holdings managing director, Mr Sonk, said, “Kumul Petroleum has been able to raise sufficient funds to close the deal for an additional 2.6% interest in the PNG LNG Project in a very tough international finance environment, where interest rates have risen to levels not experienced for a long time, and an environment where the appetite for funding of any hydrocarbon project is becoming increasingly scarce.”
“This capital raising is a major transaction for KPHL, one that we have negotiated and finalised independently with our advisors, Mizuho Bank.”
Mr Sonk outlined that the capital raising involved local banks led by the BSP Banking Group along with international banks combined with LNG equity marketing arrangements negotiated by Kumul Petroleum. He noted that local banks support was over subscribed and a portion of the Kina commitments made will be applied for the balance of an additional 2.4% equity in PNG LNG Project and the KPHL contribution for its Papua LNG Project equity interest of 22.5%.
Mr Sonk noted, “We’ve paid Santos approximately $250 million as part payment, fulfilled all conditions precedent and signed binding funding arrangements for the remainder of the transaction cost. Santos have agreed that this funding can be drawn down by 31 January 2024 to enable completion of this transaction.”
“The transaction has been approved by the KPHL Board and NEC and then cleared by the PNG Independent Consumer and Competition Commission, so this equity purchase arrangement can now proceed.”
Mr Sonk added, “We thank Santos for their patience and understanding, enabling this transaction to be finalised and our shareholding in this robust LNG project to be increased.”
“This exercise would not have been possible without the support of the Government, particularly SOE Minister Duma and Prime Minister James Marape. I am particularly gratified by our local banks and superannuation funds for stepping up to participate in this investment in the future, enabling their Papua New Guinean shareholders and members to participate in both the PNG LNG and Papua LNG projects,”