A Huli windfall at long last

COMMUNITY

By DALE LUMA
LAST Thursday, March 10 March, 2022, was an historic day for Papua New Guinea Liquefied Natural Gas (PNGLNG) landowners in Hides Four, Petroleum Development License Seven (PDL7) in Hela.
It marked the first payout of PNG LNG royalty and equity payments landowners in the area since the first shipment of PNG LNG export from the country in 2014.
Delivered through the Mineral Resources Development Company (MRDC), a total of K19.7 million was paid into 277 clan bank accounts with more than 1,000 beneficiaries for six blocks in the PDL7 area.
Another K14 million was also given as part of Community Infrastructure Trust Fund (CITF) for various projects making the total benefits paid up to K33.7 million.
Petroleum Secretary David Manau said on the day that PDL7 was the first upstream in the PNG LNG project to receive their royalty and equity payments.
“This day is very important in this occasion,” Manau said.
According to Manau, in 1997, drilling took place in the Hides Four wellhead where gas was produced for gas to electricity.
“In 2014, the first PNG LNG shipment left the shores of the country and after 13 years, the first payments have been released to the landowners,” Manau said.
“Patience from the children, women, students and leaders have taken long but have paid off.
Delays
Manau said it took too long for the release of the payments due to ongoing court cases and leadership issues.
“Many court cases have happened, we have gone to court, fought, got them out of the way and now the benefits are released.
“Support from the Government and MRDC has allowed the benefits to start to flow.
“But the delay is also good because it has brought the people to realise and appoint leaders. Elections for board leaders have happened and the people have voted.
“Hides four, PDL7 have set the track record for an electoral commission election process, transparency and no disputes from leaders which has led to the decision to release royalty and equity.
“There are a lot of other outstanding issues but they are Government processes.”
Hela Governor Philip Undialu said there were 22 court petitions that delayed the payout of the royalty and equity payments.
Benefits
MRDC Managing Director Augustine Mano the royalties were previously held in a trust account with the Bank of Papua New Guinea (BPNG).
A total K31 million was released by the central bank last year.
In addition to equity for the years of 2015 and 2016 is K18.5 million which makes up a total of K49 million in benefits.
However, Mano said only 40 per cent of total royalty and equity payments were released which is K19.7 million.
In addition to that was another K14 million for projects which brings the total benefits given to K33.7 million.
PNG LNG and the economy
Mano said the country’s Gross Domestic Product (GDP) was K34 billion in 2008.
He said when the PNG LNG project began, within five years, it went up to almost K54 billion.
“Last year, it went up close to K100 billion in GDP,” Mano said.
“The PNG LNG project is the contributing factor to the country’s GDP doubled or tripled, not any other projects.
Other PDL’s
Secretary Manau indicated that K4.3 million royalty will be paid to PDL1.
Manau said the Solicitor General has given the clearance for work to be done to open accounts for the beneficiaries.
MRDC is to take the lead and supported by the department of petroleum.
“The same for Angore, the okay has been given to make a ministerial determination and release of benefits.
“The Government has set the process and we have worked.”