Kumul Petroleum (KPHL) is one step closer to its goal of acquiring additional equity in the PNG LNG Project, closing an agreement with energy company Chevron USA.
The move to acquire more equity in the project has been ongoing since September 2023 when Santos announced a binding sale agreement to deliver 2.6 per cent participating interest to KPHL.
Earlier this year, KPHL paid $US352 million to Santos to partially complete the transaction.
“KPHL made a partial payment to Santos earlier this year with the balance to be paid by December 2024,” KPHL managing director Wapu Sonk said.
“Following an extensive bid process with major trading, utility and other entities to source funding, we selected Chevron’s forward sales agreement.”
The agreement will see Chevron make an advance payment to KPHL in exchange for liquified natural gas (LNG) and condensate cargoes over the next two years.
KPHL has sold four LNG cargoes on the spot market since the start of 2024, with this term-sale set to provide more security for the company.
“We appreciate Chevron being able to finalise this deal,” Sonk said. “This agreement advances PNG’s hydrocarbon business, where we believe there is significant potential in LNG and related energy businesses, including carbon offset possibilities.
“We look forward to working with Chevron in the future.”
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