PNG’s National Oil and Gas Company Kumul Petroleum Holdings Limited (Kumul Petroleum) has so far remitted over K4 billion to the State between 2014 – 2018 in dividends, return of capital, taxation and in other corporate social investments.
This was disclosed at its 2018 Annual General Meeting in Port Moresby attended by Prime Minister James Marape in his capacity as the Trustee Shareholder of Kumul Petroleum for and on behalf of the 8 million people of Papua New Guinea.
Kumul Petroleum Chairman Andrew Baing revealed the K4 billion remitted to the State in various forms is out of the total revenue of circa K5 billion earned by Kumul Petroleum from the periods 2014 to 2018.
Mr Baing said the K4.2 billion Kumul Petroleum support to the State over the last five years (2014-2018) was made up as follows:
- Dividend US$399 million – (K1.33 billion)
- Return of Capital US$348 million – (K1.16 billion)
- Oil Search Collar related cost US$339 million – (K1.13 billion)
- Corporate Tax US$89 million – (K300 million)
- Government Support US$22million – (K73 million)
The Chairman said that the figure represents 78% of cash available to Kumul Petroleum from PNGLNG Project and other revenue sources like the Hides Gas to Electricity Project, Moran Oil (Eda Oil) etc.
The balance of the funds had been reinvested over the last 5 years in Kumul Petroleum, in PNG and the People of PNG via the following initiatives:
- Kumul Petroleum Academy for Oil and Gas Skills Development
- Port Moresby 58MW Gas Fired Power Station under NiuPower
- Reinvestment in existing or discovered and known Oil and Gas Fields
- Staff development and education
- Student sponsorships for University Studies
Mr Baing also revealed that the Kumul Petroleum’s remittances represents over three times the total tax paid by PNG LNG Project to Internal Revenue Commission over the same period (2014-2018). This confirms the value of Kumul Petroleum to the People of PNG, especially having direct equity in resource development Projects.
The Chairman further disclosed that Kumul Petroleum achieved a Net Profit after Tax of US$143 million (K595 million) for 2018 and is expecting an even better 2019 result. Total divided pais in 2018 was K300 million, over 62% of the Net Profit after Tax (NPAT). In addition to the Dividends Kumul Petroleum also paid K300 million as Return of Capital plus over K100 million in Corporate Taxes to the State. In total these amount to over K700 million delivered in funding PNG from its investment in the Oil and Gas sector in 2018.
Finally the Chairman announced a further dividend for 2019 of K100 million bringing the total dividends to date for 2019 to K200 million.