State waits for buyers

The National,Friday July 1st, 2016

THE Kumul Petroleum Holdings Ltd is unaware of any financing made available to any group for the Kroton Option, managing director Wapu Sonk says.
The Kroton Option provides for an indirect 4.22 per cent interest in the PNG LNG project through a 25.75 per cent shareholding in Kumul Petroleum (Kroton) Ltd as prescribed in the Umbrella Benefit Sharing Agreement.
Recently, the State announced a sell down of this 4.22 per cent equity in the PNG LNG Project to a beneficiary group which includes LNG area landowners.
Treasurer Patrick Pruaitch had said the National Executive Council decision on June 6 would enable representatives appointed by the group to immediately commence due diligence assessments on the purchase proposal.
The group involves five provincial governments – Gulf, Central, Western, Southern Highlands and Hela – and landowners in the LNG project areas.
Sonk said the option exercise date had been extended by the NEC to Sept 30 after it lapsed yesterday (June 30).
“KPHL has no knowledge of any finance actually being available to any party for the Kroton Option. While a number of statements have been made by a number of parties, there has been no actual demonstration of funds available.
“Kroton would welcome a proper exercise of the Kroton Option. This needs to be made by validly-appointed representatives and accompanied by the Option Price.
“KPHL is ready and able to accept valid option exercise at any time up to Sept 30.”