PNG State entity secures Oil Search shares
The transactions were concluded prior to the end of 2014 and have enabled the Company to receive the States interest of 149,390,244 Oil Search shares, equivalent to 9.81per cent as purchased in March 2014.
This will allow it to repay the existing bridge facility to UBS, as well as to fund existing working capital requirements, stemming from its existing licenses.
In order to facilitate these transactions, NPCP Group arranged new financing of circa USD 520 million (K13846m) through a syndicate of Banks comprised of ANZ, Bank South Pacific and Westpac, in addition to separate UBS funding in relation to the Oil Search Shares.
NPCP managing director Wapu Sonk, said the entity was able to complete the transaction on the back of its growing Balance Sheet post early exports of Condensate and LNG in 2014.
"LNG Exports were expected to start in November 2014, however, early project completion and exports had enabled NPCP to be in this position of strength at this time".
Mr Sonk while thanking the Banks for their confidence said: "The receipt of the Oil Search shares would increase the exposure of the Company to the PNGLNG Project and all the Oil and Gas fields operated by Oil Search, with more than 95 per cent of Oil Search’s Oil and Gas Assets being located in PNG.
"This transaction fits within our overall strategic objective of NPCP having increased participation in all oil and gas business in PNG," he said.
NPCP general manager Finance Robert Acevski noted the complexity of the transactions given the various interests in the deal and the different financial tools and transactions underpinning it.
"The competing interests required considerable negotiation to reach acceptable commercial outcomes. This is an important series of transactions for NPCP as it emerges to become operational as the PNG National Oil Company, and it follows the recently announced acquisition of the Cue Energy PNG assets," he said.
NPCP chairman of the Board of Directors Frank Kramer in commenting, acknowledged the outstanding effort of Mr Sonk and his team.
"This transaction, consistent with NPCP’s Strategic Development Plans, is an example of the Group’s move from passive participation to active investment in the hydrocarbon sector and leveraging our resources to create value from the opportunities that present themselves to us so that we can produce sustainable wealth for our people and our nation."
PNG Today /Post Courier
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