By PATRICK SAKAL
THE beneficiary groups under the Umbrella Benefit Sharing Agreement (UBSA) with the State can indirectly buy shares in the PNGLNG project.
This is allowed through the Kroton option of the UBSA, under the facilitative role of the Kumul Petroleum Holdings Limited (KPHL) which holds 100 percentage state shares of the 25.75 percent commercial option in the PNGLNG project.
KPHL managing director, Wapu Sonk said the Kroton option of 2.27 agreed to in2009 UBSA in Kokopo was supposed to be opened on January 1, and close on June 30, 2016 for the project’s beneficiary groups like landowner groups to buy.
“But because of the circumstances beyond our control, it was not exercised on time.
The state has therefore extended a window period to December 31, 2016,” Sond said.
Sonk told beneficiary groups in a meeting on Tuesday at the Institute of Public Administration in Port Moresby that there has been a considerable change in the global oil prices since the signing of the UBSA in Kokopo, East New Britain Province.
He said the global oil price was very highly trading at US$100 (K322) per barrel or above than during the signing of the UBSA.
“So our projections and expectations were set at different level all together,” he said.
“The world order has changed in terms of oil and gas prices and our expectations on benefits should consider this.”