Kumul Petroleum Holdings Limited (KPHL) has officially presented an interim dividend of K400 million to the Independent State of Papua New Guinea. This latest payment brings the national petroleum company’s total direct financial contributions to the State and the people of Papua New Guinea past the K1 billion milestone for the fiscal year 2026.

The K400 million payment follows an advance dividend of K150 million remitted in December 2025, bringing KPHL’s total 2026 dividend distribution to K550 million. Combined with more than K480 million in Advance Payments Tax (APT) already remitted this year, KPHL’s total direct contribution for 2026 stands at over K1 billion, solidifying its position as the nation's premier driver of revenue and economic development.

The dividend was presented by KPHL Chairman Amb. Isaac Lupari, CBE, GCL, during an official ceremony attended by Prime Minister Hon. James Marape, MP; Petroleum Minister Hon. Jimmy Maladina, MP; Minister for State Enterprises Hon. William Duma, LLM, MP; KPHL Acting Managing Director Luke Liria; and the company's senior management team.

Speaking at the presentation, Amb. Isaac Lupari stated that the dividend reflects KPHL's robust financial performance, disciplined stewardship, and unwavering commitment to long-term national wealth creation.

"As the national petroleum company, our core responsibility is to ensure that the country’s petroleum resources generate tangible and sustainable benefits for current and future generations of Papua New Guineans," Amb. Lupari said.

The Board indicated that, subject to operational performance, debt obligations, and upcoming investment commitments, further dividend distributions will be considered before the end of the year. This continues a strong track record; between 2014 and 2025, KPHL has delivered:

K1.827 billion in national taxes.

K3.431 billion in state dividends.

K3.463 billion in strategic petroleum investments (including PNG LNG equity acquisitions and establishing Niu Power Ltd with Santos).

K416 million toward vital healthcare infrastructure (ANGAU Memorial and Port Moresby General Hospitals) and rural electrification.

K740 million in critical infrastructure via the Government’s Tax Credit Scheme.

In a landmark development for state project financing, KPHL has successfully secured a US$1.1 billion domestic and internal funding package to fully cover the State’s 22.5% equity participation in the Papua LNG project.

The funding package is structured as follows:

US$300 million secured through domestic lenders via BSP.

US$800 million funded directly from KPHL’s PNG LNG (15.1% interest) cash flows stretching from 2026 to 2032.

US$180 million has already been cleared for 2026 to meet the first cash call following the project's upcoming Final Investment Decision (FID).

Chairman Lupari highlighted that this marks the first time in Papua New Guinea's political history that a capital raise of this magnitude has been orchestrated domestically and backed by national asset cash flows, bypassing external international debt. He commended Prime Minister James Marape and the Government for supporting this historic milestone.

To prepare for its expanding role in Papua LNG, KPHL is actively undergoing a sweeping organizational transformation program aimed at optimizing commercial performance, elevating transparency, and tightening procurement and expenditure controls.

As part of this institutional strengthening, the Board has launched a comprehensive forensic review into historical non-core investments and expenditures valued at approximately K1.2 billion.

While the forensic audit is underway, all affected non-core projects have been placed under care and maintenance. Sub-commercial or legacy assets under active review include:

• Kumul Tower
• The Jet A-1 Fuel Facility
• The Fabrication and Technical Training Facility
• The Port Moresby General Hospital Surgical Ward Construction
• The procurement of a luxury yacht from India

The review will stringently assess governance compliance, value-for-money considerations, and procurement irregularities to restore absolute corporate accountability.

Moving forward, KPHL is running a strategic review of its entire asset portfolio to refocus exclusively on core oil and gas operations. Where commercially viable, non-core assets will be divested, leased to competent operators, or jointly developed.

"Every dividend we pay, every investment we make, and every decision we take must contribute directly toward the prosperity of our nation," Amb. Lupari concluded. "Strong financial performance must be matched by equally strong governance, accountability, and absolute transparency."