Kumul Petroleum Holdings Limited has signed a binding Heads of Agreement (HoA) with Total for the joint marketing and sale of their shares of LNG and condensates to be produced from the Papua LNG Project.
Under the HoA, KPHL and Total will negotiate a Shareholders’ Agreement for an Incorporated Joint Venture (IJV) to be set up as the corporate vehicle to commercialise their combined production share.
Chairman of Kumul Petroleum, Sir Moi Avei, says the agreement will demonstrate the unique value between the two companies.
KPHL Managing Director, Wapu Sonk, says the agreement will maximise output for both KPHL and Total.
“This agreement to jointly market our share of the production from the Elk/Antelope field with Total, the Operator of the field, will allow us to develop our staff while maximising the value brought to both companies by combining the attributes of KPHL with Total. We look forward to finalising the shareholders’ agreement and the incorporation of the IJV in the very near future,” said Mr Sonk.
Mr Laurent Vivier, President Gas at Total said: “This landmark agreement with KPHL, the National Oil Company of Papua New Guinea, is an important milestone for our two companies. It will allow Total and KPHL to leverage their respective strengths for the successful marketing and sale of the LNG from Papua LNG.”
“Cooperating with KPHL in hydrocarbons joint marketing is a testimony of Total’s strategic endeavour to continue cementing the relationship with the national stakeholders to jointly create value in Papua New Guinea,” said Mr Javier Rielo, President & CEO for Total Asia Pacific.
The agreement was signed in Port Moresby recently.