KUMUL Petroleum Holdings Limited (KPHL) has successfully concluded and executed the amended Shareholders Agreement with TotalEnergies that governs the joint marketing of equity LNG and gas volumes from the Papua LNG Project.
The agreement establishes stronger governance and economic safeguards aligned with the combined 52.94% majority interest held by KPHL and the Mineral Resources Development Company (MRDC) in Lakatoi Marketing Pte Ltd. It requires unanimous shareholder consent for key reserved matters such as pricing while strengthening protections against exposures.
The agreed governance structure supports Papua New Guinea’s compliance with its World Bank/International Bank for Reconstruction and Development (IBRD) negative pledge obligations while preserving balanced commercial participation among shareholders.
The arrangement maintains KPHL’s decision-making rights and safeguards the State’s commercial interests. It also provides for the General Manager of the Singapore-registered marketing entity to rotate every four years and for KPHL personnel to be seconded into key positions. These measures will accelerate the transfer of LNG marketing knowledge and skills and build KPHL’s long-term institutional capability.
This outcome protects the State’s financial and contractual interests, strengthens Papua New Guinea’s participation in LNG marketing, ensuring that governance arrangement properly reflect the State parties’ majority interest,” said KPHL Chairman, Ambassador Isaac B. Lupari.
KPHL acknowledges TotalEnergies, particularly the Asia-Pacific Senior Vice President, Mr. Mansur Zhakupov, and the business teams for their constructive engagement, good faith and commitment to achieving a balanced and mutually acceptable agreement.
The company also acknowledges the steadfast leadership and support of Prime Minister Chief Hon. James Marape and the Minister for State-Owned Enterprises, Hon. William Duma, which were instrumental in achieving this outcome.
The execution of the agreement is one major step closer in the progress toward the Papua LNG Project’s Final Investment Decision, currently targeted for the end of November 2026.