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Kumul said in a statement it recently closed an agreement with Chevron USA (Singapore Branch) that will further Kumul’s goal of acquiring additional equity in the PNG LNG project in Papua New Guinea.
Under the agreement, Chevron will make an advance payment to Kumul, in exchange for LNG and condensate cargoes over the next two years.
Kumul did not provide the number of cargoes.
Since the introduction of equity marketing at the start of 2024, KPHL has sold four LNG cargoes on the spot market.
Kumul said this term sale will provide more security for the company.
Australian LNG player Santos just completed the previously announced sale of a 2.6 percent stake in the PNG LNG project to Kumul.
Santos received the final payment of $241 million, taking total cash consideration to $602 million.
In addition, Kumul will assume about $90 million of existing project finance debt associated with the sale interest.
The two firms executed the binding sale agreement for the stake sale in August last year.
In February 2024, Kumul and Santos agreed to amend the terms of sale to allow partial completion of the transaction.
The amendment provided additional time for Kumul to pay the remaining purchase price of $241 million.
Besides this, Santos has agreed to grant Kumul a call option to acquire a further 2.4 percent participating interest in PNG LNG for a cash purchase price of $524 million, plus a proportionate share of project finance debt.