Delay in clan-vetting sees K600mil parked in trust accounts

HELA Governor Philip Undialu says over K600 million in equity and royalty funds from the PNG LNG project are held in trust accounts by Mineral Resource Development Company and the Central Bank.
This is due to delays in completing clan-vetting and proper landowner identification processes.
Undialu said on Thursday that the funds, which were supposed to be received by provincial governments and resource owners of the PNG LNG Project, were kept in trust accounts and accumulating.
He said this was because of failure by the Somare Government and project developer ExxonMobil PNG to complete clan-vetting and proper landowner identification processes before a petroleum development licence (PDL) was issued.
“Under Section 47 of the Oil and Gas Act (OGA), it is a legal requirement for licensee, which in this case is ExxonMobil, to undertake full-scale social mapping and landowner identification studies before a PDL is issued,” Undialu said.
“They have not done that. This blunder has prevented the release of royalty and equity funds of more than K600 million held in trust accounts by Mineral Resource Development Company and the Central Bank.”
He said serious fundamental mistakes had been made with the PNG LNG project.
Undialu said he needed support from both the Government and the Opposition to correct mistakes made in the PNG LNG project.