Signing seals deal for KEHL

Business

KROTON Equity Holdings Ltd (KEHL) will now be established following a signing ceremony on Wednesday between the PNG LNG project impact provinces.
KEHL will be owned by provincial governments of the five respective provinces – Gulf, Hela, Southern Highlands, Western and Central.
KEHL will hold a 4.27 per cent interest in the PNG LNG project.
Governors Philip Undialu (Hela), Taboi Awi Yoto (Western), William Powi (Southern Highlands), Chris Haiveta (Gulf) and Robert Agarobe (Central) signed the agreement witnessed by Kumul Petroleum Holdings Ltd managing director Wapu Sonk.
Undialu on his social media page said the governors thanked Prime Minister James Marape for fulfilling his promise to empower provincial governments and landowners.
The governors agreed that the transferring of the 4.27 per cent equity was a testament to Marape’s commitment.
“The five governors today (Wednesday) signed documents to formerly establish the company,” Undialu said. “The KEHL is expected to generate between K300 million to K500 million depending the oil price.
“There’s no better gift than this that the Government can offer to the provinces and landowners impacted by the PNGLNG project,” according to the governors’ joint statement.
They would like to see KEHL grow and be a player in the country and region in the private equity and financial sector with sound corporate structures and investment policies.
The governors also thanked former Prime Ministers in late Grand Chief Sir Michael Somare for the decision to allocate the equity at the Umbrella Benefit Sharing Agreement (UBSA) and Peter O’Neill.
“It is Marape that is finally freeing up this long waited equity interest and he deserves credit for it.”
Marape is expected to issue share certificates to respective beneficiary groups soon.