KPHL, Total agree to sell shares together

KUMUL Petroleum Holdings Ltd (KPHL), Papua New Guinea’s national oil and gas company, has signed a binding heads-of-agreement with oil company Total for joint marketing and sale of their shares of LNG and condensates from the Papua LNG project.
Under the agreement, KPHL and Total will negotiate a shareholders’ agreement for an incorporated joint venture, to be set up as the corporate vehicle to commercialise their combined production share of LNG and condensates from Papua LNG.
It will be jointly staffed by Total and KPHL.
The joint venture will engage potential buyers of LNG in the Asia-Pacific region for the long-term sale and purchase of their respective entitlements of LNG in Papua LNG.
KPHL chairman Sir Moi Avei said: “The agreement will allow us to demonstrate the unique value created when a national oil company works together with an international oil company.
“We are very confident of a successful outcome from this incorporated joint venture.”
KPHL managing-director Wapu Sonk said: “This agreement to jointly market our share of the production from the Elk/Antelope field with Total, the operator of the field, will allow us to develop our staff while maximising the value brought to both companies by combining the attributes of KPHL with Total.”