Kumul Petroleum Holdings Limited (KPHL): The Oil and Gas Custodian of PNG
The Kumul Petroleum Holdings Limited Authorisation Act 2015 is an important piece of legislation that was introduced in Papua New Guinea (PNG) to establish Kumul Petroleum Holdings Limited (KPHL) as a state-owned enterprise responsible for managing the government's petroleum assets. The Act has played a crucial role in the development of PNG's petroleum industry, helping to ensure that the government has greater control over its petroleum assets and promoting the sustainable development of the sector.
The Establishment of Kumul Petroleum Holdings Limited
The Kumul Petroleum Holdings Limited Authorisation Act 2015
provided for the establishment of KPHL as a successor company to Petromin PNG
Holdings Limited. KPHL is a state-owned enterprise that is responsible for
managing the government's petroleum assets and promoting the sustainable
development of PNG's petroleum industry.
Purpose and Functions of Kumul Petroleum Holdings Limited
KPHL's main purpose is to manage the government's petroleum
assets, including its interests in exploration, development, production, and
marketing activities related to petroleum resources. The company is also
responsible for promoting the sustainable development of PNG's petroleum
industry and ensuring that the sector contributes to the economic and social
development of the country.
To achieve its objectives, KPHL performs a range of
functions, including:
a)
Negotiating and entering into agreements with
oil and gas companies;
b)
Acquiring and disposing of assets on behalf of
the government;
c)
Managing the Kumul Petroleum Fund, a special
trust account that holds the government's share of petroleum revenue;
d)
Undertaking exploration, development, and
production activities in partnership with other companies;
e)
Promoting local content and employment in the
petroleum sector; and
f)
Ensuring compliance with environmental and
social regulations
Type of Licenses Held by Kumul Petroleum Holdings Limited
KPHL holds a range of licenses for exploration, development,
and production activities in PNG's petroleum sector. These licenses include:
Petroleum Prospecting License (PPL) - allows for
exploration activities in a specific area for a limited period
Petroleum Retention License (PRL) - allows for the
retention of a specific area for further appraisal and development activities
Petroleum Development License (PDL) - allows for the
production of petroleum resources in a specific area
Area Licensed by Kumul Petroleum Holdings Limited
KPHL holds licenses for exploration, development, and
production activities in a range of areas across PNG, including offshore and
onshore locations. Some of the major projects that KPHL is involved in include
the PNG LNG project, the Stanley Gas Project, and the Pasca A Gas Project
In conclusion, the Kumul Petroleum Holdings Limited
Authorisation Act 2015 and the establishment of KPHL have been crucial in
promoting the sustainable development of PNG's petroleum industry. By managing
the government's petroleum assets and promoting local content and employment in
the sector, KPHL is helping to ensure that the sector contributes to the
economic and social development of the country. Its various licenses and
partnerships with other companies enable KPHL to undertake exploration,
development, and production activities in a range of areas across PNG, which
will help to ensure the country's long-term energy security.
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