Papua New Guinea Secures Funding for 2.6% PNG LNG Stake Acquisition from Santos
Papua New Guinea's Kumul Petroleum Holdings has secured the final financial hurdle for its ambitious acquisition of a 2.6% stake in the PNG LNG project from Australian energy giant Santos. This move strengthens PNG's ownership of its natural resources and marks a significant step towards its long-term economic development goals.
Funding Secured: Kumul has completed financing arrangements for the $576 million purchase price, including an initial $250 million escrow payment and additional funding available by January 31, 2024.
Regulatory Approval: The PNG Independent Consumer and Competition Commission has granted final approval, clearing the last hurdle for the transaction.
Strengthening National Ownership: This acquisition represents PNG's commitment to increased national ownership of its natural resources, fulfilling a key government objective.
Long-Term Partnership: The deal builds upon the existing partnership between Kumul, Santos, ExxonMobil, JX Nippon Oil & Gas, and MRDC in the highly successful PNG LNG project.
Project Significance: PNG LNG, operated by ExxonMobil, boasts a production capacity exceeding 8.3 million tons of LNG, playing a crucial role in Papua New Guinea's economic landscape.