By GYNNIE KERO
KUMUL Petroleum Holdings Ltd managing director Wapu Sonk (pictured) says Petromin’s final petroleum asset, Eda Oil Ltd, will soon be moved to the entity.
It follows the signing of a share sale agreement between KPHL and Petromin in Port Moresby yesterday. The Eda Oil Ltd used to be a wholly-owned subsidiary of Petromin.
Petromin’s managing director Thomas Abe said they were actually “transferring two assets – Eda Oil and Eda Oil’s subsidiary Kumul LNG”.
“It (Eda Oil Ltd) holds a 20.5 per cent interests in petroleum development licence 5 (PDL5), an 11.2 per cent interest in the Moran Unit Facilities under the Moran Unit Operating Agreement.”
Upon acquisition of Eda Oil Limited, KPHL will become a participant in PDL 5 (Moran), increasing its interest in the PNG LNG project by 0.2 per cent.
Sonk said the current asset value of KPHL was US$1.8 billion (about K5.7bn). It will probably increase to US$2 billion following the transfer.
“The terms of the transfer have been settled and today (yesterday) marks the milestone whereby KPHL, through its subsidiary, Kumul Petroleum (Development) Ltd will enter into a share sale agreement to purchase from Petromin all the issued shares in Eda Oil Limited,” Sonk said.
“This is the last of assets coming over from Petromin. Eda Oil is a producing asset in Kutubu, Moran area. It will be part of the PNG LNG interest for the State. It will stay together with Kroton interest.
“The transfer of Petromin’s oil and gas interests is in line with the State’s agenda to consolidate, manage and grow the long-term value of petroleum-related investments.”
By GYNNIE KERO