Kutubu Oil landowners to get 20pc ‘Christmas gift’ royalties

The National Business

By JEFFREY ELAPA
FOR the first time since the commencement of Kutubu oil production in 1991, Southern Highlands government has announced a 20 per cent Christmas gift of royalties from the project to Kutubu landowners.
Governor William Powi announced yesterday that 20 per cent of the provincial government’s 70 per cent royalty from Kutubu oil would be given to the landowners as a special Christmas gift.
The provincial government receives about K16 million annually from royalties, depending on oil prices.
Powi said this was after a lengthy consultation process and dialogue with landowners, who currently receive 30 per cent royalty from the Kutubu project.
The transfer of 20 per cent from the provincial government means that both Kutubu landowners and the Southern Highlands government will receive 50 per respectively.
“This is a special Christmas present to the people of Kutubu, who have waited for this announcement for a long time since the Kutubu project came on stream in 1991,” Powi said.
“I, on behalf of the provincial government, announce this as a Christmas gift to the people of Kutubu who have supported the people of PNG in terms of revenues from the Kutubu oil and now the gas project, in the Southern Highlands province.”
Powi also announced the allocation of projects in the five electorates of the Southern Highlands.
He said due to late receipt of the province’s development funds from Waigani, his government had made a major announcement to allocate funding straight to the five districts with the K26 million LNG development levy it received recently.
The breakdown is:

  • Ialibu-Pangia district K4.5 million: K1 million for Western Pacific University, K1 million for Ialibu Secondary School infrastructure, K1.5 million for Pangia Agro Innovative project, and K500,000 for Tindua-Kware road;
  • Imbongu: K500,000 each to the district administration support and coffee rehabilitation project support, and K400,000 for Giluwe beef project;
  • Mendi-Munihu K4 million: K1 million for Mendi police housing, K1 million for Mendi town roads, K500,000 for Nene Road, K500,000 for DDA support and K1 million for Bush Karinz Road;
  • Kagua-Erave K2 million: K500,000 for Kagua Secondary school infrastructure, K500,000 Kagua Market and K1 million for Muli-Yate Road; and
  • Nipa-Kutubu: K4 million for Kutubu township, K400,000 for Pesi-Timte Road, K500,000 for Tengel-Upa road and K1 million for health centre completion.

Powi said K11 million was allocated for Southern Highlands government general administration.