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PNG Government to get K60bil from LNG project

THE Papua New Guinea LNG project will inject more than K60 billion into the government coffers over its 30-year lifespan, according the PNG Extractive Industries Transparency Initiative (EITI)  2014 report.
The K60 billion will come from taxation alone, devoid of dividends from government’s participation in this investment worth more than all other existing extractive projects in PNG combined – US$19 billion (K58 billion).
The Government has 16.8 per cent stake in this project managed by Kumul Consolidated Holdings Limited.
The Mineral Resource Development Company manages 2.8 per cent on behalf of the landowners.
The operator, ExxonMobil, has a 33.2 per cent stake with Oil Search, Santos, JX Nippon Oil and Gas Exploration Company holding 29.0 per cent, 13.5 per cent, and 4.7 per cent respectively.
PNG EITI Head of National Secretariat Lucas Alkan said: “The benefits to the PNG economy by the PNG LNG and other existing mining and petroleum investments are just amazing.
One can picture what the PNG society will look like in the near future if such wealth is translated well into tangible developments underpinned by transparency and accountability.
“Projects that are under the pipeline like Wafi-Golpu Mine, Frieda Mine, Papua LNG, the extension of the PNG LNG and others will pour more into government coffers in the not too distant future.
“We strongly believe our presence in the country is timely and we hope to do our part by promoting transparency and accountability in the industry through our annual EITI report and associated activities.
“And off course support from all stakeholders is important to achieve EITI goals. According to reports the PNG LNG project is expected to deliver social and economic benefits to PNG due to its scale and coverage.
“Direct benefits include revenue streams for national and provincial governments and landowners through taxes, royalty payments, levies, and through equity participation in the project,” Alkan said.
“The government is predicted to benefit from taxation revenue totalling K67 billion over the 30-year life of the project, in addition to dividend revenues from its equity shareholding.” The National/ PNG Today
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