PNG to allocate 7% of LNG revenue to Sovereign Wealth Fund

Seven percent of revenue from the PNG LNG project will be allocated to a sovereign wealth fund starting this year.

Prime Minister James Marape told NBC News that Kumul Petroleum Holdings Limited has been tasked with managing the fund.

His comments follow the government’s full retirement of its bank debts associated with the LNG project, valued at approximately K69 billion.

Prime Minister Marape said the move is part of efforts to strengthen Papua New Guinea’s financial position amid ongoing economic reforms and concerns.

“Seven percent of earnings from our PNG LNG will be ploughed into the sovereign wealth fund, and the remaining earnings will be distributed under a dividend policy that will be implemented next year," Marape said.

“Eighty percent will flow to support the national budget. Going forward, as Kumul Petroleum participates in other projects, it is important that its balance sheet remains strong to enable participation in Papua LNG, P’nyang LNG, and other LNG projects currently being sequenced.

“In this context, we are looking forward not only to equity earnings but also to tax revenues, which will continue to support the national budget."