Minister explains share deal

By PETER ESILA
PETROLEUM and Energy Minister Kerenga Kua says Kumul Petroleum Holdings Ltd (KPHL) is to participate in all commercial businesses in the petroleum industry.
Kua said people should not equate the recent offer to acquire five per cent of Santos Limited’s equity in the PNG LNG project to the Union Bank of Switzerland (UBS) arrangements that went bad.
KPHL announced that it had offered to buy the five per cent equity recently offered by Santos and had already made a part payment of US$55 million (about K189.83 million).
“I understand Papua New Guinea’s desire to buy 10 per cent from Santos, and so if they are selling five per cent only now, there is still room for further discussions held about whether or not KPHL can afford to buy the full 10 per cent,” Kua told The National.
“It is about affordability.
“If KPHL is able to buy 10 per cent, it should buy 10 per cent.
“But if it cannot afford to buy 10 per cent, then five per cent is okay, bearing in mind that we are yet to pay for our 22.5 per cent equity in the Papua LNG project.
“KPHL is the best place to get further into PNG LNG and also into Papua LNG which is pending.
“KPHL is in best place to advise the Government on affordability on entry into both projects.
“KPHL have to be able to reserve their capacity to borrow money to pay for that 22.5 per cent equity in the Papua LNG project too, it is a commercial thing to be decided by KPHL.”