For those that don't know the history in regards to PNG...

For those that don't know the history in regards to PNG financing a share of PNG LNG IMO many years ago Maq bank set up a structure lending PNG the $ upfront using OSH shares as security and hoping dividends and cap gain would pay for the interest costs . Bottom line was PNG govt took and spent cash , oil price crisis , Shares held as security were lost as oil gas was unhedged and no cash to cover interest bill. . Then PNG govt chucked a hissy fit , called sovereignty of resources ( possibly supported by Chinese interests who are trying to upset world energy investment where they are not a player) and demanded a new lot of shares or all leases would cease to exist. IMO basically extorted a new holding to stabilise new govt. Remember between PNG LNG and 5 other resource projects they account for 70 plus % of PNG GDP . Govt showed no respect for millions technical support, logistics cash, education, training, employment and stability and aide OSH provided annually direct to locals let alone after the earthquake where so much infustructure was repaired . Still the PNG parliament wanted to screw OSH after decades of OSH doing the right thing.

Come ford 5-10 years and you can see why financiers would be worried although Kummul is a different entity and structure for a different purpose and hopefully managed as a business.

So now STO is doing the right thing allowing Kummul to do similar again - frankly Kummul have paid over the odds ( not at the time but now in hindsight same multiples are not used) and no one would normally deal with them but they area valid partner that other PNGLNG partners would accept.. You would hope this helps align PNG GOVT and its investment Body Kummel so they don't try and screw PNGLNG partners like STO but again we see the shenagians with a resigning energy minister recently. Oh well that is PNG and PNG politics and allowing extension doesn't cost STO much realistically so expect delays as that is business as usual in settlement of this deal .