Government orders review of 4.27% PNG LNG stake

The Government has tasked Kumul Petroleum Holdings Limited to review the 4.27 percent Kroton equity in the PNG LNG project.

Prime Minister James Marape announced this in Parliament in response to a question from Komo-Hulia MP Daniel Tindipu on the status of the equity.

Mr Marape reaffirmed the Government’s commitment to resolving long-standing issues surrounding the 4.27 percent PNG LNG stake.

Mr Tindipu had raised a series of questions on the ownership, management and status of the Kroton equity linked to the PNG LNG project.

Prime Minister Marape, in response, said the 4.27 percent equity originated from arrangements under the 2008 and 2009 Umbrella Benefit Sharing Agreement.

Despite the project's significant contribution to the country's economy, since 2014, landowners from the five provincial governments have not been allowed to purchase the shares.

Marape blamed this, on the UBS loan arrangement by the former government.

He's now directed the Kumul Holdings Limited to undertake a review of the 4.27 percent equity stake and then present a report to Cabinet.

While the 4.27 percent equity is an important benefit to landowners, the Prime Minister clarifies it is not a statutory entitlement under the Oil and Gas Act.

Nonetheless, this government is determined to ensure that the landowners and provincial governments are properly recognized as beneficiaries.