Kumul Petroleum Holdings Limited recently closed an agreement with American energy company Chevron USA Inc (Singapore Branch) that will further KPHL’s goal of acquiring additional equity in the PNG LNG Project in Papua New Guinea.
In September 2023, Santos announced a binding sale agreement to deliver Kumul a 2.6 per cent participating interest in the PNG LNG Project for a total purchase consideration comprising cash of US$602 million and associated project finance debt. Earlier this year Kumul paid US$352 million to Santos to allow partial completion of the transaction.
“KPHL made a partial payment to Santos earlier this year with the balance to be paid by December 2024,” said Wapu Sonk, KPHL managing director. “Following an extensive bid process with major trading, utility and other entities to source funding, we selected Chevron’s forward sales agreement.”
Under the agreement, Chevron will make an advance payment to Kumul Petroleum, in exchange for LNG and condensate cargoes over the next two years. Since the introduction of equity marketing at the start of 2024, KPHL has sold 4 LNG cargoes on the spot market and this term-sale will provide more security for KPHL.
“We appreciate Chevron being able to finalise this deal. This agreement advances PNG’s hydrocarbon business, where we believe there is significant potential in LNG and related energy businesses, including carbon offset possibilities,” said Sonk. “We look forward to working with Chevron in the future.”
