KPHL received US$1.6bil from PNG LNG since 2014: Sonk

KUMUL Petroleum Holdings Ltd (KPHL) managing director Wapu Sonk has told the Commission of Inquiry into the Union Bank of Switzerland (UBS) loan that KPHL had received US$1.644 billion (about K6 billion) as dividends to date from Papua New Guinea liquefied natural gas (PNG LNG) since 2014.
He said from this revenue, KPHL had paid US$522 million in dividends to the State, US$394 million in return of capital to the State, US$181 million to the State in taxes and US$23 million as corporate social responsibility.
“From the US$1.644 billion received, about US$1.119 billion (about K4 billion) had been paid into the State, which equated to 68 per cent of the total revenue generated so far,” Sonk said.

Wapu Sonk
He provided an additional statement dated Aug 10, to supplement and clarify evidence that he had already provided to the inquiry and to the specific questions by the Chief Commissioner Sir Salamo Injia in relation to revenue received from PNG LNG since the first shipment of cargo in 2014.
He also clarified issues that Sir Salamo raised in regards to an affidavit by Arthur Somare who stated that US$3 billion was given to KPHL by PNG LNG. He said Somare’s figure was incorrect.

When asked about who provided funds to pay the bridge loan at US$219 million (about K800 million) on Dec 17, 2014, Sonk said the letter of credit from the ANZ Bank under the syndicate of banks provided for that. When asked by Commissioner Margaret White to clarify the total loss of A$382 million (about K965 million) incurred during the UBS transaction, Sonk said the loss was not incurred by the decision to sell the Oil Search shares by KPHL in 2017.
He said it was the quantity of the totality of the loss and cost of the transaction in 2014 with the type of financing arrangements that was negotiated by the State.
Sonk will return on Wednesday if the commission receives requests for re-examination.