Company activities are governed by the Kumul Petroleum Holdings Limited Authorisation Act 2015, which mandates it as the corporate nominee to hold and manage State interests in oil and gas projects in the country.
KPHL manages its petroleum licence interests through a number of subsidiary companies.
KPHL has enjoyed unqualified audits every year since 2014, demonstrating the company's good governance, transparency and accountability. Once accounts are audited, a summary is included in the KPHL annual report. As these become available they will be posted on this web site.
Company activities are also guided by its ESG Policy, as approved by the KPHL Board. In line with our corporate vision to provide benefits to the State, the nation, and our people, Kumul Petroleum Holdings Limited is committed to maintaining high standards of environmental custodianship, social relevance, and corporate governance across all our activities, both within Papua New Guinea and internationally. As the national petroleum and energy company, KPHL is committed to becoming Net Zero, in line with the PNG Government’s similar commitment for the country to achieve Net Zero CO2 emissions by 2050. The KPHL ESG Policy is intended to provide a framework for how the company applies ESG considerations in its operations, how communities are engaged and how the evaluation and implementation of investments is undertaken. The policy takes into account ESG considerations at all levels in the company from field operations to joint venture participation and any investments made by KPHL.
Despite the impacts of Covid-19 during 2020, Kumul Petroleum continued its role as State nominee in petroleum projects in the country.
The LNG plant at the PNG LNG Project facilities at Caution Bay outside Port Moresby once again operated above its rated capacity of 6.9 mtpa, producing 8.8 million tonnes of LNG for export. With 114 shipments taking place during the year, the main income source for the organisation was assured.
However, international petroleum and LNG prices dropped due to the worldwide Covid-19 pandemic and they only partly recovered by the end of the year. Kumul Petroleum revenue consequently dropped compared to the previous year, reducing from US$697 million to US$484 million, which affected dividend and other payments to the State.
In the energy sector, Kumul Petroleum maintained its shareholding in NiuPower Limited along with its 50/50 partner, Oil Search Limited. The NiuPower gas-fired power station continued to dispatch power into the Port Moresby power grid throughout the year, generating electricity worth a total of K47.6 million.
In line with its stated strategic goals, Kumul Petroleum continued its philanthropic support of health initiatives, supporting the national Department of Health and finalising long- term funding agreements with the two main hospitals in Lae and Port Moresby to assist treatment of cancer and heart disease.
Also in support of Government initiatives, Kumul Petroleum continued its construction of electricity transmission lines in the Hela and Southern Highlands provinces. This infrastructure will provide necessary and important linkages between the high voltage line extensions of the Ramu grid constructed by PNG Power and the rural communities who need access to electricity. Combined with initiatives of other agencies, such connections will go a long way towards achieving the NEROP target of enabling electricity to reach 70% of the population by 2030.
Kumul Petroleum also supports national development in other ways including operation of the Kumul Academy providing specialist industry training, donations to health facilities and funding for a range of sporting codes including rugby league, soccer, golf and cricket.