Kumul Petroleum Holdings Limited entered into an agreement to acquire a 2.6% stake in PNG LNG Inc. from Santos Limited (ASX:STO) for approximately $590 million on September 1, 2023. The transaction is subject to n the approval of the PNG competition regulator. The transaction is expected to closed on or before December 31, 2023.
As on December 29, 2023, Santos is pleased to confirm that further to the announcement on August 31, 2023 for the sale of 2.6% of PNG LNG to Kumul Petroleum Holdings Limited (Kumul), funding for the transaction has been secured by Kumul. Kumul has paid approximately $250 million into escrow with Santos as part payment of the purchase price. Additionally, Kumul has executed binding funding arrangements for the remainder of the consideration, which will be available for drawdown by January 31, 2024. Approval by the PNG independent Consumer and Competition Commission (ICCC) for the transaction has been received, satisfying the only condition precedent to the transaction. The commercial terms of the transaction remain unchanged. As on February 1, 2024, Santos and Kumul have agreed an amendment to the Sale Agreement where Kumul has taken an effective interest in the Santos entity that holds the 2.6% sale interest. Kumul has paid $352 million to Santos (equivalent to a 1.6%) on January 31, 2024 to allow partial completion of the transaction. The amendment provides additional time for Kumul to pay the remaining purchase price of $241 million. Until final completion, Santos retains control of the entity holding the 2.6% and in order to assist with purchase of the remaining interest, future project distributions associated with the interest sold to Kumul will be applied to acquiring the remaining interest.

Kumul Petroleum Holdings Limited completed the acquisition of 2.6% stake in PNG LNG Inc. from Santos Limited (ASX:STO) for approximately $600 million on November 4, 2024.