Concern over landowner companies

National, Normal

The National

THE National Gas Corporation (NGC) is concerned over the number of landowners being formed and the confusion arising from the situation.
Chairman Alfred Kaiabe had suggested that they should register with Gigira Laitebo Ltd, a subsidiary of NGC.
He said the NGC was created by an Act of Parliament to take the lead in oil and gas development in the country.
He said the present situation was caused by the State and developers who signed gas agreements without proper social mapping and plan on how landowners would participate in spin-off business activities.
“Now there is so much confusion with so many landowner companies springing up.
“As the legitimate State agency, the NGC now wants to provide the leadership needed for some sort of order to prevail on the ground, “ he said.
“I call on the State and developer to follow the law and acknowledge the mandate given and allow NGC to provide that leadership,” he said.
On Tuesday, Gas Apa Ltd became the first landowner company to sign a memorandum of understanding for the company to come under Gigira Laitebo.
Mr Kaiabe said they would sign a separate memorandum of agreement stating the equity structure and other details.
He urged others to follow Gas Apa.
Mr Kaiabe said the NGC was owned by 20 provincial governments and that the National Executive Council (NEC) had approved for Gigira Laitebo to be the corporation’s trading arm, that would be equally owned by the landowners, provincial governments and NGC.