K9.2mil for Kikori landowners

By GYNNIE KERO in Kikori, Gulf
MORE than K9.2 million will be paid into the bank account of 37 major clans in Kikori, Gulf, today, Mineral Resources Development Company (MRDC) managing director Augustine Mano says.
He was in Kikori yesterday for the announcement of the payment to landowners.
Kikori is segment 7 of the PNG LNG project and will receive 44.47 per cent (K9.2m) of the K20.7 million earmarked as the 40 per cent direct cash benefit payment to segments 1 to 8.
Yesterday’s event marked the start of the delivery of benefits for PNG LNG project pipeline landowners starting this year.
Gulf Governor Chris Haiveta urged the pipeline landowners to be responsible with how they use their money and share it equally among all clan members.
Petroleum and Energy Minister Kerenga Kua thanked the landowners for their patience in the past 11 years.
Kua discouraged landowners in project areas from rushing to court to settle disputes as court injunctions only delayed the benefit-sharing processes.
The pipeline landowners live in remote villages in Hela, Southern Highlands, Western, Gulf and Central.
The 679km pipeline transports gas from Hides in Hela to Caution Bay outside Port Moresby.
It runs through native land, entitling them to royalty and equity benefits from the PNG LNG Project.
Since 2014, their royalty and equity benefits have been held in trust pending the completion of landowner identification, the opening of clan bank accounts, and the election of directors to the board of landowner companies.
In the past three years, officials from the MRDC, the Department of Petroleum and Energy, Kumul Petroleum Ltd and Bank South Pacific travelled to these remote areas to complete the process, which is a requirement of the Oil and Gas Act.
The landowners are divided into eight segments.
Segments 1 to 6 live in Western, Hela and Southern Highlands.
Segment 7 live in Kikori and segment 8 in Central.
Mano said: “With benefitting clans identified in the ministerial determinations, bank accounts opened, and landowning trust company directors appointed, the requirements of the Oil and Gas Act have now been met.
“The royalty payment for the pipeline landowners is for the years 2014 to 2018 and totals K31.3 million.
“Equity payments total K23.16 million and is for 2014 to 2016.”
The total is K54.26 million, of which 40 per cent will be distributed as cash benefits through bank accounts, 30 per cent for community infrastructure projects, and 30 per cent retained in the Future Trust Fund for investment.
Mano said landowners of segment 6 (Gobe) would not receive their benefits as they had disputes pending in court.
Mano said MRDC wants to replicate for the pipeline landowners the kind of community infrastructure projects and investment that were improving lives in the plant site area in Central.
The plant site, or portion 152 landowners, have been receiving their benefits since 2017 as they were the first to meet all the requirements of the Oil and Gas Act.
These landowners have so far received K33.67 million in royalty, and K21.54 million in equity benefits, totaling K55 million.