US energy supermajor Chevron will make an advance payment to Kumul Petroleum, in exchange for LNG and condensate cargoes over the next two years. This deal will enable Papua New Guinea’s national petroleum and energy firm Kumul Petroleum Holdings Limited (KPHL) to acquire more equity in the PNG LNG project in Papua New Guinea.
The agreement was recently closed between Papua New Guinea’s national petroleum and energy firm, Kumul Petroleum Holdings Limited (KPHL), and the American energy company Chevron USA (Singapore branch).
Since the introduction of equity marketing at the start of 2024, KPHL has sold 4 LNG cargoes on the spot market, KPHL said, and this term-sale will provide more security for KPHL.
In September 2023, Santos announced a binding sale agreement to deliver Kumul a 2.6 per cent participating interest in the PNG LNG Project for a total purchase consideration comprising cash of $602m and associated project finance debt.
Earlier this year Kumul paid $352m to Santos to allow partial completion of the transaction.
“KPHL made a partial payment to Santos earlier this year with the balance to be paid by December 2024,” said Wapu Sonk, KPHL managing director. “Following an extensive bid process with major trading, utility and other entities to source funding, we selected Chevron’s forward sales agreement.”
“We appreciate Chevron being able to finalise this deal. This agreement advances PNG’s hydrocarbon business, where we believe there is significant potential in LNG and related energy businesses, including carbon offset possibilities,” said Sonk.
