Kroton equity shares from the PNG LNG project up by 10.27pc

 THE Kroton equity shares from the PNG LNG project will now increase to 10.27 per cent, vice-minister assisting the Prime Minister looking after Kumul Petroleum Holdings Ltd Manase Makiba says.

Makiba, who is also Komo-Margarima MP, told PNG LNG landowners in Hides, Hela, recently that the decision was made by Government following Santos offloading certain shares after taking over from Oil Search Ltd last year.

The Kroton equity beneficiaries are the PNG LNG project-impacted provincial governments – Hela, Southern Highlands, Central, Gulf and Western governments and all landowners from the impacted areas.

“The 4.27 per cent in Kroton equity is being parked by Kumul Petroleum,” Makiba said.

“When Oil Search pulled out, Santos Ltd came in and gave out six per cent and Government has made the decision to add that six per cent to the 4.27 per cent so it will become 10.27 per cent. This is good news.”

Makiba said there were process in place where landowners needed to follow in order to obtain and manage the funds from that share.

Under the 2009 Kokopo UBSA (umbrella benefit sharing agreement), the Government granted Kroton equity beneficiary group an option to acquire an indirect 4.27 per cent interest in the PNG LNG project by buying 25.75 per cent of the shares in Kumul Petroleum Kroton Ltd, which then was known as Kroton No.2 Ltd.

It is the special purpose subsidiary of Kumul Petroleum that holds the State’s 16.57 per cent interest in the PNG LNG project.

The National / Pacific Mining Watch

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