Port Moresby, 9th September 2026 – The Kumul Petroleum Holdings Limited (KPHL) Board has commenced a comprehensive review and reset of the Kumul Tower Project after a site inspection by KPHL Board Chairman, Ambassador Isaac B. Lupari CBE, GCL and Acting Managing Director Mr. Luke Liria.
The recent visit confirmed that significant excavation, ground stabilisation, piling and foundation works had been completed by China State Construction Engineering Company (CSEC). However, the Board expressed grave concern about the governance of the project’s procurement and its management arrangements, including oversight by the external project manager.
A recent forensic audit conducted by an independent external auditor has confirmed the Board’s serious concerns regarding governance and accountability for expenditure exceeding US$120 million (~K500 million). A detailed report setting out the findings and recommended actions will be submitted to the Government.
“The Board has a duty to protect KPHL and the State. Before we make any further major commitment, we must establish clearly what has been delivered, whether the design remains appropriate, and which delivery and financing structure will provide the strongest long-term value.
“As part of the reset, the Board will re-evaluate the project’s scope, design, cost and commercial viability. This will include assessing a reduction of the proposed building from 27 storeys to a more commercially viable 15-storey development, and engaging independent project architects to review the design, engineering, functionality, constructability and cost,” Chairman Lupari said.
He said the Board would also consider a mixed-use model incorporating hotel and office accommodation. Potential delivery and financing options include a build-own-operate-transfer (BOOT) arrangement or a joint venture consortium of reputable local and international entities with the capacity to finance and deliver the project.
“No delivery model has been selected. Any proposed option must undergo independent technical and commercial due diligence, demonstrate value for money, allocate risk appropriately, and comply with all governance and approval requirements,” Chairman Lupari stressed.
He said KPHL remains committed to ensuring that any future development of Kumul Tower is transparent, commercially sustainable and aligned with the long-term interests of the company, the State and the people of Papua New Guinea.
AUTHORISED FOR RELEASE
AMBASSADOR ISAAC B. LUPARI CBE, GCL
Chairman
Kumul Petroleum Holdings Limited
