Santos has finalized the sale of a 2.6 percent stake in the PNG Liquefied Natural Gas (LNG) Project to Kumul Petroleum Holdings Limited (KPHL) for a total of K2.4 billion. The transaction was completed with a final payment of US$241 million (approximately K965 million), raising the total cash consideration for the deal to US$602 million. In addition to this payment, KPHL also assumed US$90 million (K360 million) in project finance debt associated with the stake acquisition.
 |
| KPHL Managing Director Wapu Sonk |
With this sale, Santos now holds a 39.9 percent working interest in the PNG LNG project, a figure that will not impact the company’s market guidance for 2024. KPHL Managing Director Wapu Sonk explained that the purchase agreement included an earlier payment of US$352 million (about K1.4 billion), with the remainder due by December. He added that the acquisition was finalized well ahead of schedule.
This latest purchase increases KPHL’s shareholding in PNG LNG to 19.2 percent, incorporating the 4.27 percent Kroton Equity Option, which is held on behalf of provincial governments and landowner groups impacted by the project. Sonk expressed that Kumul Petroleum’s larger stake brings significant benefits to both the company and the country.
According to Sonk, the PNG LNG Project is projected to be fully depreciated by the end of 2024, with all project finance debt cleared by 2026. This additional equity is expected to yield high returns, further strengthening KPHL’s financial position.
Sonk also highlighted that the increased revenue from PNG LNG would enable KPHL to expand its role in Papua New Guinea’s petroleum and energy sectors. He noted that the added income would allow KPHL to support nation-building projects that enhance the lives of Papua New Guineans across the country.
Also read
From Dirt to Dynasty: How Alluvial Gold Miners Could Become Billionaires in PNG