Kumul Petroleum Holdings Limited yesterday reacted to the recent announcement that the the PNG LNG Project Joint Venture, in which KPHL has a 19.4% interest, had accelerated the final repayment under the PNG LNG project finance facility, bringing it to a close earlier than expected. The project has delivered strong and sustained performance and benefits to the country since LNG exports commenced in 2014.
This means that the debt facility will fully repaid by the end of 2025, increasing future income for all project stakeholders.
Chairman Gerea Aopi said, “This is a great achievement for the PNG LNG Project, and good news for us at Kumul Petroleum. Our increased income will strategically flow into and assist us to put together the necessary finance for PNG to take up its mandated 22.5% equity in the forthcoming Papua LNG Project, especially during its 4-5 year construction period.”
“Of course our future income will still be dependent on world petroleum prices, and in reality this timely announcement actually means no windfall cash, given KPHL’s commitment to the Papua LNG Project, whose FID date is eagerly awaited.”
Chairman Aopi noted that KPHL continued to support the Government, having recently paid K400 in dividends to Treasury, as well as supporting impacted landowners and provincial governments through its ongoing vendor financing of KEO beneficiaries. He noted that the Papua LNG Project is a once-in-a-generation, transformational project whose economic, fiscal and social benefits could only be fully realised if PNG maintained a significant equity position.
Mr Aopi added, ”The KPHL Board is mindful and supportive of Governments’ development priorities and seeks to pay dividends without jeopardising KPHL’s forthcoming financial commitments, such as those associated with the Papua LNG Project, and our requirement to maintain sufficient liquidity for ongoing activities and contractual obligations.”
“The KPHL Board is heartened by recent statements from the Prime Minister confirming the country’s equity participation in the high priority Papua LNG Project. Kumul Petroleum remains a cornerstone in the development and safeguarding of PNG’s natural resources sector, whilst simultaneously contributing to achieving socio-economic goals through our nation-building projects.”
