07/01/2022
THE Kumul Petroleum Holdings Ltd (KPHL) will start paying landowners under the Kroton Equity of the PNG LNG project next week, says managing director Wapu Sonk.
He told The National that they would start payments on Tuesday.
“Landowners especially the brown fields like PDL (petroleum development license) 2, 3, 4, 5, 6, LNG Plant site, pipeline segments and PDL 7 in Hides are ready and KPHL will coordinate with them on payments to them starting Jan 11,” Sonk said yesterday.
More than K250 million was paid last month by KPHL to five provincial governments. It was also announced that payments to landowners would follow. More than 60,000 landowners and five provincial governments of the PNG LNG project impact areas come under the Kroton equity.
Following the company’s annual general meeting, K251 million preferential dividends held by Kumul Petroleum for Kroton equity beneficiaries was paid to the provincial governments and project landowners.
Of the K251million paid, K189million was dividends for PNG LNG project Kroton Equity option beneficiaries (landowners), and K62million was paid to the five provincial governments – Hela, Southern Highlands, Western, Gulf and Central.
Each provincial government was to receive dividend payments in proportion to their shareholding as determined in the 2009 Kokopo Umbrella Benefit Sharing Agreement (UBSA).
This is the first dividend payment after Kroton equity beneficiary groups exercised the Kroton equity option in 2016.
Under the 2009 Kokopo UBSA 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 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.
