PM O’Neill Reassures PNG LNGs that Rights to be Fully Exercised

The Prime Minister Peter O’Neill , has reassured Landowners from the affected PNG LNG Project Area, and entitled Provincial Governments, that the National Government stands ready to help them to exercise their rights.

PM O’Neill said ensuring the process is properly carried out is essential for setting a standard for ongoing and future projects to follow.

He said the Landowners and the Provincial Governments of Hela, Southern Highlands, Gulf and Central, will have to exercise their rights to take up their Kroton Equity options within the period from January 1 to 31 June this year.

“The processes is underway to identify affected landowners and confirm participating clans,” the Prime Minister said.

“Then having them recognized as Incorporated Land Groups, as is provided for in the License Based Benefit Sharing Agreements and other agreements.

“This process of identifying and confirming Project Area Landowners is being carried out through the National Court Annexed Mediation exercise. This is under the leadership of His Honour, Justice Ambeng Kandakasi and and Deputy Chief Magistrate, Mark Pupaka with the consent of the Affected Project Area Landowners and the State.”

PM O’Neill said seeing this process carried out properly is important for setting a benchmark for Landowner participation with current projects continuing to grow and new projects coming online.

“ExxonMobil is expanding the LNG project with the P’Yang field now being negotiated with Government, and once the officials establish a position it will come to Cabinet for Government’s approval

“They will increase the investment to pipe gas from P’nyan to the current project sites and that will create a lot of construction and employment for Papua New Guineans

“This is billions of dollars of investment

“The new TOTAL project is estimated to be valued at around 20 Billion US dollars.

That is going to create a lot of employment over several years.

“There is a lot of work going on behind the scenes, including a lot of drilling so that they can verify the reserves of gas there so that they can determine the plant size and how it can be constructed and delivered.

This will create a lot of employment for Papua New Guinea and a lot of stimulus for the economy over a number of years.”

The Prime Minister said in relation to affected PNG LNG Project Areas, disputes involving Court Annexed Mediation cover ten PNG LNG Project related cases.

“Those proceedings raise issues about disputes over participation in the PNG LNG Project, the right to receive royalties and participate in project equity.

“There are also disputes about the application of Infrastructure Development Grants (IDGs) as well as Business Development Grants (BDGs) and the legality of the PNG LNG Project itself.”

PM O’Neill said the National Government has welcomed the Court’s Intervention and endorsed it unreservedly. In welcoming this action, he said the Government has confirmed Accredited Mediator and National Court Mediation Track Judge, and Chairman of ADR Committee, Justice Ambeng Kandakasi CBE, as the Mediator in charge with overall oversight authority of the Mediated Intervention Program.

“We have also further approved and confirmed Accredited Mediator and Deputy Chief Magistrate in charge of Land Courts in PNG, Mark Pupaka, as lead Mediator. This vests in him full authority for all daily operational matters of the Mediated Intervention Program.

“The Government has done this to give better traction and to ensure the Court Annexed Mediation exercise delivers on its objective.

“This must be in time for the affected Project Area Landowners and Provincial Governments to exercise their options.”

In terms of logistics, the Mediation Team is collaborating with relevant State agencies including the Department of Lands and Physical Planning, Civil Registry Office and Solicitor General’s Office. The Police and Defence Force are maintaining security and the Judiciary is providing its full support.

The Mediation Team is backed up by lawyers representing the respective parties in the referred Court cases. This includes State lawyers, relevant State agency personnel with statutory responsibilities in the Incorporated Land Group (ILG) formation process, as well as others engaged for the purposes of this Mediated Intervention Program by the Mediators.

The Mediated Intervention Program commenced with an initial K2.3 million funding support from the National Government and the Prime Minister said progress is being made and milestones being met.

“At this juncture the Government is pleased to note that landowner identification and Clan confirmation and corporatization work in most of the Blocks in PDL 8 is complete,” PM O’Neill said.

“Towards the end of last year Finance Minister, James Marape, and the Tari-Pori Treasury gave additional financial support of K1 million which the Mediation Team is now using to continue its work.

“The Department of Lands and Physical Planning has also used some of its Development grant to fund its support activities, while the Judiciary has and continues to provide considerable support to the Mediated Intervention Program. This includes accepting costs of participation by Mediation Team members from the National Court headed by Honourable Justice Kandakasi.”

The Prime Minister said the Government is fully committed to see the Mediation work concluded in a timely period noting that the Government:

• Will ensure that the back end of the PNG LNG Project, the Landowner Royalty receipt and Equity participation, is realized sooner.

• Will ensure that all social risks to the PNG LNG Project are properly managed.

• Further wants to set the benchmark for Landowner participation in future projects within the Oil and Gas industry with PNG LNG cases Mediated Intervention Program outcomes.

To achieve these aims, the Prime Minister said the Government will fully fund the Mediation Team’s remaining work in all of the PDL areas from the well heads to the PNG LNG Project Pipeline and Plant Site Areas.

“Our Government wants to see all relevant State entities and actors extend their total support to the Mediation Team,” PM O’Neill said.

“All relevant State agency personnel, including those with functional responsibilities in the Incorporated Land Group formation process, must collaborate fully in this very important exercise.

“This is important for the nation that all programs set by the Mediators are respected and their instructions are followed.”