![]() This has led to a crisis in public health. The anticipated improvements to health services from mining and liquid gas royalties have not eventuated, and the problems of corruption and inefficiency in service provision are compounded by the government’s apparent lack of concern for the health of the population. While describing the PNG LNG project as a very valuable asset, Santos said its balance sheet is strong and the company remains committed to selling that additional 5% equity to Kumul to support the host government in achieving the nation’s equity objectives.Reflecting on 25 years of research into health service delivery and the health status of women and children in Papua New Guinea, it is distressing to observe the current catastrophic failures and continued decline in services for women and children. The partners’ current interests are operator ExxonMobil on 33.2%, Santos with 42.5%, Kumul having 16.8%, JX Nippon Oil on 4.7% and the PNG landowner Mineral Resource Development Company with 2.8%. “The project is positioned in a supportive regulatory environment, with fiscal stability arrangements in place ensuring that it contributes strong cash flows to project participants and delivers significant economic and social benefits to the nation.” “With the significant changes in the global energy landscape over the last 12 months, PNG LNG remains a world-class asset that is low-cost, low emissions intensity and delivers reliable LNG supply to our customers in Asia,” he said. Santos chief executive Keven Gallagher said the PNG LNG project continues to represent “compelling value” for shareholders. Kumul Petroleum managing director Wapu Sonk earlier told Upstream that the extra 5% equity would more closely align the state’s interest in PNG LNG with its back-in rights to future gas projects such as TotalEnergies’ Papua LNG and the P’nyang gas project. ![]() ![]() Papua New Guinea’s national oil company makes $1.4 billion offer for LNG play On 23 December Kumul, extended the offer period until the end of April, and Santos on Monday confirmed it has been advised the offer will now remain open until 31 August. The $1.4 billion price includes a proportionate share of the project finance debt of about $300 million. With credible private sector lenders significantly advanced, I am confident that Kumul will secure an appropriate financing package.” “Given the volatility in the financial markets and high interest rate environment, I support Kumul’s request for a time extension to complete the transaction. PNG Prime Minister James Marape said: “I am fully supportive of continuing the transaction to purchase 5% of PNG LNG in pursuing PNG national interest and its nation building programmes. The $19 billion liquefaction project began operations in 2014 and today routinely produces in more than 8 million tonnes per annum of LNG, significantly above its 6.9 million tpa nameplate design capacity. In late September, Kumul submitted a binding conditional offer to buy an additional 5% interest in the PNG LNG liquefied natural gas project from Santos, which holds the majority 42.5% stake. Papua New Guinea’s Kumul Petroleum still has its sights on acquiring further equity in the ExxonMobil-operated PNG LNG project from largest shareholder Santos, again extending the deadline to complete the $1.4 billion deal as it has yet to secure the necessary financing.
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