Landowners praised for offer

Sinasina-Yongomugl MP Kerenga Kua has praised wellhead landowners from the PNG LNG-impacted provinces for making an offer for the Government’s 4.27 per cent equity in the project.
Kua, who is also the leader of the PNG National Party, congratulated the landowners from the PNG LNG project for offering the Government K725 million for their equity in the oil and gas project. His comments were in appreciation of the Treasurer  Patrick Pruaitch’s letter to Prime Minister Peter O’Neill recommending that the offer from the landowners be accepted as it was better than the Kumul Petroleum Holdings Ltd’s proposal to the landowners.
He said: “This offer is historic as it is the first time any landowner group has sourced independent funding to buy equity into a petroleum project.
“I commend the landowners in being proactive and seeking their own funding options instead of waiting for the Government to act on their behalf.
“The timing of this offer is also suitable given the ongoing financial crisis faced by the Government, especially in an election year.
“The amount offered by the landowners is also appropriate as it is based on how much the Government had paid for its shares in the  project.
“Like the landowners, I look forward to the response of Government but I have to say that it would be senseless for the Government to reject this offer by the landowners.”
Pruaitch, in a letter to O’Neill dated Jan 26, said the K725 million  offered by the beneficiary groups would flow into the consolidated revenue and boost the Government’s 2017 budget.
Pruaitch said some of these funds could be utilised to complete the clan-vetting exercise to underpin long-term project security.