KUMUL Petroleum Holdings (KPHL) has foreshadowed taking up additional holdings in Total’s Papua LNG project and the ExxonMobil operated PNG LNG project, in its annual report.
Kumul said both projects were “considered internationally as relatively low cost and likely to proceed in coming years.”
“Taking up equity in these developments once they proceeded would provide KPHL with a long-term cash flow,” the company said.
In the announcement, company chairman Frank Kramer and managing director Wapu Sonk said KPHL was operating well despite low oil and LNG prices affecting the returns from investments in PNG LNG and Oil Search as well as the profitability of industry players worldwide.
The company has also made large dividend payments to the government totalling K501 million from year 2014 to 2015.
Mr Kramer said KPHL was well placed to take advantage of future developments in the LNG and energy sectors.
“Apart from core investments in PNG LNG and Oil Search the company had strategic shareholding in other exploration licences and had entered into a memorandum of understanding with the Sojitz Corporation of Japan to investigate the economic viability of a petrochemical industry in the country,” he said.
Mr Sonk said staff numbers had increased by 50 per cent this year as national graduate trainees were engaged, technical training was organised for staff overseas and within PNG and a corporate strategic plan was initiated.
“KPHL is also looking into mini LNG Concepts to gas distribution in country for power generation,” he added.