January 06,2017, 06:46 pm
The Managing Director of Kumul Petroleum Holdings Limited (KPHL), Mr Wapu Sonk today announced that the Company has been working with beneficiary groups that have expressed their interest to exercise the Kroton Option Equity.
These groups will be called in over the coming weeks to sign up on the share transfer documents as well as the vendor note being offered by KPHL.
The following beneficiary groups have come forward;
(1) PNG LNG Plantsite
(2) PNG LNG Pipeline
(3) PDL 9 – Juha
(4) PDL 4 – Gobe and,
(5) Fly River Provincial Government.
The option to acquire shares in Kumul Petroleum (Kroton No 2) Holdings Limited is one of the benefits agreed to by the PNG Government and set out in the Umbrella Benefits Sharing Agreement (UBSA) in 2009 for landowners and Provincial Governments along the footprint of the PNGLNG Project.
Under the UBSA the PNG Government granted the landowners and Provincial Governments a commercial option to buy 25.75% of the shares in Kroton No 2 Limited, the special purpose company that holds the State’s 16.57% interest in the PNG LNG Project.
In addition to the beneficiary groups who have registered interest to sign up in the coming weeks, one landowner beneficiary group and four provincial governments have already taken up their Options. They are PDL 5 (Moran); and Southern Highlands, Hela, Gulf and Central provincial governments.
Mr Sonk said; “The Beneficiary Groups who have expressed their intention before the 31st of December 2016 to exercise the Kroton Option using KPHL’s Vendor Finance Facility are hereby advised that signing of the share transfer documents and the Vendor Finance Facility is scheduled in the coming weeks until the 31st of January 2017.”
He pointed out that KPHL’s role was to implement the agreement that was reached in the UBSA and, provide additional benefits for the Landowners and relevant Provincial Governments if they elect to invest in Kroton.
KPHL will work with those beneficiary groups that have signed up to complete the transaction and arrange necessary governance aspects of the interest holdings in Kumul Petroleum (Kroton No 2) Holdings Limited.