High Arctic Energy Services Inc T.HWO

PNG hatches $4.5b plan for new LNG train, gas fields

[40YardLine]

Papua New Guinea’s national oil company is in early talks with potential partners to build its own LNG processing unit at an existing LNG complex near Port Moresby as it seeks to unlock rich supplies of gas and help spur economic and industrial growth.

Wapu Sonk, managing director of Kumul Petroleum Holdings, said the proposed 1 million tonnes-a-year unit would be in addition to the new units to be built by the TotalEnergies-led Papua LNG venture, for which a landmark decision to start engineering design work was taken early this month.


Kumul Petroleum MD Wapu Sonk says talks are underway with potential partners for the project.

Mr Sonk said Kumul’s project could cost as much as $US3 billion ($4.5 billion) involving both the construction of the new LNG train and the development of new gas fields.

Kumul is 100 per cent owner of about 2.5 trillion cubic feet of gas held in fields such as Kimu, Barikewa, Uramu and Pandora, which were handed to the company as part of the government’s strategy of keeping control of the country’s resources.

Some fields were previously held by Oil Search, before being handed back to the nation, while Kumul secured the rights to Pandora despite interest from Australian company Twinza Oil, according to Reuters.
Kumul Petroleum’s $4.5 billion plan for new PNG LNG train, gas fields (afr.com)

[impega]

This bodes well for future prospects. Sure hope we get news that the 1st rig is drilling, followed by news of a second rig contract. We have been waiting a long long time. Given the prospects I can't understand why the company isn't buying back shares at these depressed prices (far below book value).

[JonathanJSmith]

Based on the capital structure, they are limited in what they can buy before Cyrus ends up with 50%+ ownership. If anything, they need to buy back from Cyrus. Perhaps 5mm shares at $1.75?

[impega]

Jonathan I get your point re: Cyrus and 50% ownership but the company could buy a couple million shares and Cyrus would still be under 50%. Enough buying to clean up the overhang of shares we see from time to time and enough to provide some needed liquidity. I suspect that Cyrus prefers increased dividends over buybacks and they obviously have a say in it. I suspect it won't be long before we