Santos Limited has successfully finalised the sale of a 2.6 per cent interest in the PNG LNG project to Kumul Petroleum Holdings Limited (KPHL) 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 KPHL, bringing the total cash consideration for the transaction to US$602 million.

In addition to the cash payment, KPHL 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 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.

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, with a financial investment decision expected in late 2025, as well as other activities that the company continues to pursue.

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