Kua said people should not equate the recent offer to acquire 5% of Santos's equity in the PNG LNG project to the Union Bank of Switzerland (UBS) arrangements that went bad.
"I understand Papua New Guinea's desire is to buy 10% from Santos, and so if they are only selling 5% only, there is still room for further discussions held about whether or not Kumul can afford to buy the full 10%," Kua told The National newspaper.
"It is about affordability. If Kumul is able to buy 10%, it should buy 10%. But if it cannot afford to buy 10%, then five per cent is okay, bearing in mind that we are yet to pay for our 22.5% equity in the Papua LNG project.
"Kumul is the best place to get further into PNG LNG and also into Papua LNG which is pending. Kumul is in best place to advise the government on affordability on entry into both projects.
"Kumul has to be able to reserve their capacity to borrow money to pay for that 22.5% equity in the Papua LNG project too, it is a commercial thing to be decided by Kumul."
