About K3.7b paid to state

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THE Kumul Petroleum Holdings Limited (KPHL) has paid US$1.1 billion (about K3.78 billion) in dividends and tax to the Government, from the US$1.64 billion (about K5.64 billion) it collected since 2014.
Prime Minister James Marape said the US$1.64 billion was the proceeds from the 696 liquefied natural gas (LNG) shipments as at the end of last financial year. He said from the net proceeds on the LNG cargoes, KPHL paid to the Government the equivalent of 68 per cent of the total money received from the PNG LNG project.
Marape received a dividend payment of K100 million from KPHL yesterday. KPHL managing director Wapu Sonk said it was the first payment of the K300 million to be paid this year.
The K300 million is the “planned payment” expected by the government but it is subject to change depending on the oil and gas prices in the commodities market.
“We are able to pay K100 million dividend to the State because the prices are good this year unlike last year,” Sonk said.
Marape said the Government had a clear dividend policy for all state-owned enterprises:

  • 60 per cent of all revenues to be paid to the Government to support the National Account;
  • 10 per cent to be used by the SOE for community projects (and) partnering with churches in the areas of health, education and other projects;
  • 7 per cent to be paid into the Sovereign Wealth Fund to save for the tough times;
  • 13 per cent to be kept by the company for investments;
  • 10 per cent is to be kept for administrative costs.