Kumul Petroleum Holdings Limited made a binding conditional offer to acquire 5% stake in PNG LNG project from Santos Limited (ASX:STO) on September 27, 2022. Under the terms of transaction, Kumul Petroleum to acquire a project interest in PNG LNG for asset value of $1.4 billion, including a proportionate share of project finance debt of approximately $0.3 billion & to secure the Offer, Kumul has paid an amount of $55 million to Santos which will be held in escrow to be released to Santos as a deposit for part payment of the Offer price if it accepts the Offer. Kumul is existing partner in the PNG LNG projectFollowing the transaction, Santos would maintain a 37.5 per cent interest in this world-class project. As part of the proposed transaction, Santos and Kumul will negotiate a Heads of Agreement. The Offer is conditional on Kumul obtaining the waivers of certain pre-emptive rights by each other PNG LNG project participant under the project operating agreement to allow the transaction to proceed. The Offer is expressed to be irrevocable. Completion will be subject to customary conditions including necessary regulatory approvals and Kumul securing financing. The proposed transaction will have an effective date of December 31, 2022, with Santos to retain all 2022 cash flows. As of December 23, 2022, Kumul has extended the period in which the offer will remain open until April 30, 2023. Santos has agreed to deal exclusively with Kumul during this period regarding the sale of equity in PNG LNG. As of May 1, 2023, Kumul has advised Santos that it has now extended the period in which the Offer will remain open until August 31, 2023. Santos has agreed to deal exclusively with Kumul during this period regarding the sale of equity in PNG LNG.

JB North & Co is acting as financial adviser and Allens is acting as legal adviser to Santos.