Prime Minister Hon. James Marape has welcomed a K400 million Dividend Payment from Kumul Petroleum Holdings Limited (KPHL) to the National Government, describing it as a significant contribution towards supporting the 2026 National Budget, sustaining essential Government services and strengthening Papua New Guinea’s economic resilience amid challenging global economic conditions.
The Prime Minister received the Dividend during a Press Conference at his Office inside Parliament House today, following the Parliamentary session. Present were Minister for State Enterprises Hon. William Duma, Minister for Petroleum Hon. Jimmy Maladina, KPHL Chairman Ambassador Isaac Lupari, Acting Managing Director Dr Luke Liria, and Senior Company Officials. Prime Minister Marape commended KPHL’s Board and Management for delivering strong Financial Returns while undertaking important Reforms to strengthen corporate governance, financial discipline and future investment capacity. “This occasion is about us receiving Dividends, part of this year’s budgeted Dividend inflow back to Treasury,” Prime Minister Marape said. “I want to firstly commend the Trustee Delegate Minister, Kumul Petroleum Holdings Chairman, your Board, as well as the present Management.”
The K400 million Payment, together with an earlier K150 million contribution, brings KPHL’s Dividend Payments for 2026 to K550 million. Chairman Lupari reported that KPHL had also contributed K480 million in Advance Tax Payments, bringing its combined Dividend and Tax contributions to more than K1 billion during the year. The company is targeting further Dividend Payments, subject to cash flow, financial commitments and its approved annual operating plan. Prime Minister Marape said the Returns demonstrated the long-term value of Papua New Guinea maintaining equity participation in major Resource Projects. He acknowledged the foresight of the late Grand Chief Sir Michael Somare and leaders involved in establishing the PNG LNG Project, including former Minister Arthur Somare and Minister Duma. “To those who feel we cannot be Equity Partners, I want to say you are Tax dependent,” he said. “There is a place for Equity in the mix in benefit earnings for the country.”
The Prime Minister emphasised that Papua New Guinea must continue securing Direct Ownership in major Petroleum developments rather than depending entirely on Taxation and Royalties. He highlighted the Government’s commitment to securing a total 25 per cent national participation in the Papua LNG Project, including the 22.5 per cent interest to be carried through KPHL. Prime Minister Marape welcomed Cabinet’s approval of KPHL’s Financing Strategy, which will utilise existing PNG LNG revenues, company savings and domestic financial institutions to support Papua LNG equity financing. “For the first time, we are doing Domestic Funding for Papua LNG,” he said. “Cabinet has already approved the Financing Plan. We are on our way to participate in Papua LNG comfortably.” He disclosed that KPHL had already set aside US$180 million towards its Equity Financing obligations upon the Project’s Final Investment Decision (FID). The Prime Minister said Papua LNG represented another major opportunity to expand national revenue, create employment, stimulate local businesses and support economic growth over the coming decades. Minister Maladina confirmed that the Government was working towards a targeted FID date of 15 December 2026, with Construction anticipated to commence in 2027, subject to the necessary approvals and financing arrangements.
Prime Minister Marape urged Stakeholders, particularly Project-Area Landowners and Provincial Governments, to support the ongoing Papua LNG Development Forum. “We are planting trees whose shade we shall sit under 10 years, 15 years, 20 years from today. Papua LNG needs to be funded and supported,” he said. He also acknowledged the contributions of PNG LNG operator ExxonMobil and its Joint Venture Partners in maintaining production and delivering substantial benefits to the country. The Prime Minister welcomed KPHL’s ongoing restructuring, including stronger investment guidelines, financial controls and reviews of existing projects to ensure sustainable returns.
He stressed that the Company must remain commercially disciplined and operate independently while delivering dividends to the State. “We keep the Company in a sustained manner, invest in the right places, so the golden goose keeps on laying the eggs for our country,” he said. Prime Minister Marape also commended KPHL’s investments in national development, including electrification, health infrastructure and support for cancer treatment facilities at Port Moresby General Hospital. He encouraged other State-Owned Enterprises and Corporate organisations to complement Government development efforts through responsible investment and community infrastructure programmes. The Prime Minister said the Dividend came at an important time as the Government continued financing Fuel Subsidies, El Niño Relief Assistance and other Budgetary commitments. “This is coming today at a time when we need to complete the Fuel Subsidy, finance the El Niño Relief and make sure we complete our 2026 Money Plan year consistent with our One Per Cent Deficit Money Plan,” he said.
Prime Minister Marape expressed confidence that continued investment in PNG LNG, Papua LNG and future Petroleum developments would strengthen National Revenue and Economic opportunities. “Let’s set up a Company that supports the Sovereign Wealth Fund, supports community funds, supports the development budgets every year,” he said. He concluded by urging Papua New Guineans to maintain peace, use essential resources responsibly and support national development. “Government will try its absolute best to assist the economy and our citizens,” Prime Minister Marape said.