K250mil paid to shareholders

By SHIRLEY MAULUDU
MORE than K250 million was paid yesterday by Kumul Petroleum Holdings Ltd (KPHL) to 60,000 landowners and five provincial governments of the PNG LNG project impact areas.
Following the company’s annual general meeting yesterday, K251 million preferential dividends held by Kumul Petroleum for Kroton equity beneficiaries was paid to the respective provincial governments and project landowners.
According to KPHL, of the K251 million paid, K189 million was announced as dividends for PNG LNG project Kroton equity option beneficiaries (landowners) while K62 million was paid to the five provincial governments which included Hela, Southern Highlands, Western, Gulf and Central.
Respectively, each provincial government would receive their dividend payments in proportionate to their shareholding as determined in the 2009 Kokopo Umbrella Benefit Sharing Agreement (UBSA).
This is the first dividend payment after Kroton equity beneficiary groups exercised the Kroton equity option in 2016.
KPHL managing director Wapu Sonk said the K251 million dividends were from the financial years 2017 to 2021 as per the vendor financing agreement that was signed in December 2016 which protected the Kroton share option exercise. “Kumul Petroleum has been working to free the Kroton option of 4.27 per cent and effective 2022, the beneficiaries will get full amounts allocated for the 4.27 per cent in project revenue now under Kumul Petroleum,” he said.
According to KPHL, the five provincial governments and landowners from well head area, pipeline and plant site areas along the footprint of the PNG LNG project together constitute the Kroton equity beneficiary group.
Under the 2009 Kokopo UBSA agreement, the government granted Kroton equity beneficiary group an option to acquire an indirect 4.27 per cent interest in the PNG LNG project by buying 25.75 per cent of the shares in Kumul Petroleum Kroton Ltd, which then was known as Kroton No.2 Ltd and is the special purpose subsidiary of Kumul Petroleum that holds the State’s 16.57 per cent interest in the PNG LNG project.