Kroton Equity subsidiary of KPHL

KROTON Equity Holdings Ltd (KEHL) is a subsidiary of Kumul Petroleum Holdings Ltd (KPHL) and is also the nominee company that has an interest in the PNG LNG project, according to KPHL.
Managing director Wapu Sonk told The National that under the umbrella benefits sharing (UBS) agreement signed in Kokopo in 2009, the landowners and provincial governments of the five PNG LNG project impacted provinces – Gulf, Hela, Southern Highlands, Western and Central – were given a 25.75 per cent share of Kroton as part of the development agreement.
Sonk said the signing ceremony last Wednesday was for those landowners and the provincial governments, especially the governors, to become directors so a new company could be created.
“We have been keeping it so that the landowners can get themselves organised as it was also commercial,” he said.
He said the provinces were required to pay the state to exercise their right in the stake in KEHL.
However, the provinces were unable to because of the low oil prices and the clan vetting system had not been completed and KPHL needed to deal with properly elected and appointed landowner representatives.
Sonk said it had taken a while but KPHL wanted to start working with the provincial governors.
“That’s why we got them on board to start and create the company and they can start to use that money to expand and invest for the future,” he said.
“The company is already set up but will take about six months to be properly established.”