Kumul acquires 40pc interest

Business

By SHIRLEY MAULUDU
KUMUL Petroleum Holdings Limited (KPHL) has acquired 40.1 per cent interest in the block Petroleum Development License (PDL) 3 in Southern Highlands from two companies.
KPHL managing director Wapu Sonk told The National yesterday that KPHL had “finalised the sale agreement and final ministerial clearance was received last week”.
“The transaction is a back-to-back deal with MRDC (Mineral Resources Development Company) where one of its subsidiaries Petroleum Resources Gobe (PRG)Limited will take 75 per cent of the purchased equity,” he said.
“The main driver of taking more interest is because of the belief that there are more reserves to be recovered.
“And we would like to pursue low-cost operation techniques to prolong the field life. We are also keen on taking the gas to Port Moresby and supply to the 50MW power plant next to the LNG plant site.
“The second phase of the transaction to transfer to PRG is underway.”
He did not say how much it cost.
Japanese exploration and production company INPEX Corporation confirmed yesterday it had sold a 40.1 per cent participating interest in block PDL3 held by the Southern Highlands Petroleum Company Ltd (Southern Highlands), in which INPEX held a 10 per cent share.
INPEX said it resulted from a proposal by Southern Highlands on the sale of its participating interest in the production block to Kumul.
INPEX agreed to it from the perspective of optimising its group’s global asset portfolio.
Southern Highlands’ other investors have also agreed to the proposal.
INPEX acquired shares in the production block in 1990 by investing in Southern Highlands.
It had taken part in production and operation activities in the SE Gobe oil field, which straddles the production block and the adjacent Block PDL4.
The SE Gobe oil field was unitised in 1998.

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