Santos Limited has successfully finalised the sale of a 2.6 per cent interest in the PNG LNG project to Kumul Petroleum Holdings Limited (Kumul) as of November 4, 2024.

This transaction follows previous announcements made on December 29, 2023, and February 1, 2024.

The completion of the sale was marked by Santos receiving a final payment of US$241 million from Kumul, bringing the total cash consideration for the transaction to US$602 million.

In addition to the cash payment, Kumul will assume approximately US$90 million of existing project finance debt associated with the sale interest.

With this transaction, Santos’ working interest in the PNG LNG project has now been now adjusted to 39.9 per cent.

The company has confirmed that there will be no changes to its market guidance for 2024 following this sale.

Kumul Petroleum Holdings Limited has just finalised its acquisition of additional equity in the PNG LNG Project from Santos Limited. KPHL managing director Wapu Sonk explained: “Under our agreement with Santos we made a part payment of US$352 million earlier this year, with the balance to be paid by December 2024, and we have just completed this share acquisition, well before the end of the year.”

KPHL’s shareholding in the PNG LNG Project has now increased to 19.2 per cent, including the 4.27 per cent Kroton Equity Option shareholding, held for beneficiaries — impacted provincial governments and landowner groups.

Sonk added: “For KPHL, the higher income from the PNG LNG Project means more ability for us to play a greater role in the country’s petroleum and energy sector as well as our ongoing support for nation-building development projects that will improve the lives of all Papua New Guineans.”

He further stated that this acquisition positions the company to prepare to take up its mandated 22.5 per cent equity in the forthcoming Papua LNG Project, whose FID is expected in late 2025, as well as other activities that the company continues to pursue.

Kumul’s acquisition is part of a broader strategy to increase its stake in the PNG LNG project, which is seen as a significant asset contributing to economic and social benefits to Papua New Guinea.

This move aligns with Kumul’s objectives to enhance its equity participation in national resource developments.