Landowners in Hides target gas spin-offs

Business, Main Stories

THE people of Hides 4 have launched an umbrella company to get involved in spin-off benefits in the LNG project in the Southern Highlands province.
Hides 4 was previously PRL12, until recently when it became PDL7 after an issue of the petroleum development licence.
PDL7 holds about 15.3 trillion cubic feet of gas, which is about 59% of the total gas for the unified project, which will cost about US$17 billion (K46.7 billion)    to develop.
Clans in PDL7 are divided into six blocks.
Various leaders who backed the umbrella company include Robert Hawi (block1), Jocky Tindipur (block2), Ikipe Alembo (block3), Hengepe Haluya (block4), Eric Ayule (block5), and John Honale (block6).
All the blocks agreed to form the umbrella company Gigira Parepare Resources Limited (GPRL).
GPRL chairman Eric Ayule said all the clans in PDL7 decided to unite behind this company so they could benefit from spin-off businesses from the project.
Mr Ayule said the creation  up of the umbrella company was in line with what was outlined to them by the Department of Petroleum and Exxonmobil during the umbrella and licenced-based benefit sharing forums held last year.
He said the GPRL has met Investment Promotion Authority (IPA) and Internal Revenue Commission (IRC) statutory requirements, and received the approval of the ministry and department of petroleum and energy.
Mr Ayule said they were promised K15 million during the benefit sharing forums as seed capital to launch the companies.
He said they want the Government to release the  money  now to them so they can prepare for work from the developer.
GPRL is preparing to submit their business plan to Esso Highlands, the subsidiary of Exxonmobil.
PDL7 is crucial to the entire project.
While it holds majority of the gas, the Gas Conditioning Plant will be built there.