Prime Minister Hon. James Marape has clarified the legal basis of his recent correspondence to the Chairman of Kumul Petroleum Holdings Limited, reaffirming that his actions were undertaken in his capacity as trustee shareholder on behalf of the State and people of Papua New Guinea.
The clarification follows the circulation of a formal letter dated 24 March 2026 to Board Chairman Gerea Aopi, relating to a recommendation on board composition.
Prime Minister Marape emphasised that, under the legal framework governing Kumul Petroleum, the Prime Minister of the day serves as trustee shareholder representing the interests of the nation, including resource owners.
“As trustee shareholder, I act for and on behalf of the people of Papua New Guinea — including our landowners, who are the custodians of our natural resources. My correspondence was undertaken within this legal mandate and in full compliance with due process,” he said.
Appointment Reflects Due Process And Continuity
Prime Minister Marape stated that the current Board of Kumul Petroleum Holdings Limited, including Chairman Gerea Aopi, was appointed under his signature and in full compliance with established legal and governance processes.
“Mr Aopi was appointed as Chairman under my signature, in accordance with due process. Likewise, the other senior Papua New Guineans serving on the board were all appointed properly and in line with the law,” the Prime Minister said.
He emphasised that the current recommendation of Larry Andagali arises from an existing vacancy and is being progressed through the same lawful process.
“The recommendation of Mr Andagali is to fill a vacancy on the board, and like all other appointments, it will be subjected to the full due process required under law, especially the requirements of Section 10(8)(a) and (b) of the Kumul Petroleum Consolidated Holding Act,” he said.
Appointment Reflects Experience And Landowner Representation
Prime Minister Marape reaffirmed his support for Mr Andagali, describing him as a highly experienced petroleum and gas professional with more than three decades in the industry.
“Mr Andagali has been involved in the sector since 1989 and comes from the Highlands gas region, which includes key Petroleum Development Licence areas such as PDL1, PDL7, PDL8 and PDL9,” the Prime Minister said.
He noted that these project areas underpin the PNG LNG Project, which has generated more
than K33 billion for the country and contributes approximately 90 to 95 percent of Papua New Guinea’s LNG output.
“This is a national company that belongs to the State, the people, and more than 60,000 landowners within the project footprint. It is both fair and appropriate that a capable representative from this region is considered at board level,” he said.
Strengthening Link Between State And Landowners
Prime Minister Marape said Mr Andagali’s nomination brings an important landowner perspective into the governance of Kumul Petroleum.
“He is not only a businessman, but also a clan leader, a PDL leader, and a regional figure who understands the realities on the ground. His presence strengthens the link between our national company and the landowners,” he said.
Mr Andagali has been associated with successful enterprises including Gigira Development Corporation and Trans Wonderland Limited, reflecting strong commercial capability alongside community leadership, especially in the Hides, Angore and Juha areas.
Kumul Petroleum Board Composition
Prime Minister Marape confirmed that the Board of Kumul Petroleum Holdings Limited comprises board members of the highest standard in Papua New Guinea, and that the recommendation will be subjected to the same checks and balances and, upon advice from KPHL, will be affirmed or otherwise.
Assurance Of Due Process
Prime Minister Marape assured the nation that all actions taken were guided by proper legal authority and governance processes.
“I want to assure our people that there is no ill intent. Every decision has been made within the powers vested in the office of the Prime Minister as trustee shareholder, and always in the national interest,” he said.
“Our focus remains on ensuring that Kumul Petroleum operates transparently, responsibly, and for the benefit of all Papua New Guineans.”