Petromin acquires Eda Oil for K40m

Eda Oil Ltd, formerly the subsidiary of the Mineral Resource Development Corporation has been transferred along with its assets to Petromin PNG Holdings.
This was Petromin’s first business transaction since its inception.
Eda Oil Ltd holds 20.5% of the State’s interest in the PDL 5 Moran petroleum project in Southern Highlands with a total asset value of more than K270 million.
Petromin chairman Brown Bai said the transfer was a milestone for the company and was the first of many commercial transactions for Petromin as it builds its asset base to deliver its mandate.
“We have truly begun this process with the acquisition of the State’s interest in the Moran project through the purchase of Eda Oil Ltd and I want to assure our stakeholders that we will add value to this asset,” Mr Bai said.
Mr Bai stressed that while Petromin, through its Act, was entitled to acquire State assets in current and future mining and petroleum projects, the company had no special protection from the State with respect to exercising the State’s option to participate in any projects.
In officiating at the transfer, Prime Minister Sir Michael Somare praised both MRDC and Petromin for successfully concluding the transfer, consistent with the intentions of government to have all State owned assets in mining and petroleum held by Petromin.
“ The successful acquisition of Eda Oil Limited by Petromin for a total consideration of K40m gives me the satisfaction that the State-owned companies can work together in achieving objectives of their shareholders, the people of PNG.”
Sir Michael reflected back on the sale of Orogen Mineral Ltd which, he noted, was “ruthlessly sold for a few pennies” in 2002 and as such Papua New Guineans have remained rent collectors.
“And that’s the ugly face of complete privatisation – ownership and revenue gains are not maximised and transparency and fairness on the value of our resources cannot be guaranteed.”