Kumul Petroleum Holdings Limited and Fabtech International, a Dubai based fabrication facility operator, have signed a management and operations agreement for a fabrication facility to be established in Port Moresby, in preparation for the construction phase of the Papua LNG and subsequent LNG and mining projects.

Kumul Petroleum Holdings Limited managing director Wapu Sonk said the facility is expected to have a capacity of 20,000 tonne per year, producing steel, mechanical, piping and electrical modular packages.

“It is expected to provide direct employment for 1000 skilled Papua New Guineans and indirect jobs for up to 3000 more people when it is operating at full capacity. The number of jobs could double if the facility is run 24hrs per day.”

Kumul Petroleum Holdings has also signed a design and engineering contract with A2Z LLC, a Dubai based engineering company with significant experience in the design and engineering of heavy fabrication facilities globally.

“Kumul Petroleum and its investors are expecting to work with the Papua LNG Project’s EPC contractors to start using the facility when the project achieves FID and enters the construction phase later this year or early next year.”

Mr Sonk outlined that the facility is designed to meet national content requirements for petroleum, energy, mining and major infrastructure construction in the country. He added that it was likely that work orders could also come from elsewhere in the the region, since in relative terms, PNG will have a highly skilled labour force, cheap domestic gas-powered electricity, resulting in a competive cost per unit that will drive efficiency.

Mr Sonk noted, “site works for the construction of the facility have already begun, located close to the existing ExxonMobil managed LNG plant.”