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.

Location: Waigani, Port Moresby, Papua New Guinea

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