MP: We should pay less for equity

 KOROBA-Kopiago MP Phillip Undialu says the PNG LNG project landowners should not be made to pay huge amounts of money for their 4.27 per cent equity in the project. 

He supported a statement by Hela Governor Anderson Agiru that landowners and the five provincial governments who are stakeholders should not be forced by the Government to pay the US$240 million (K704 million) share.

“The price of US$240 million for an indirect equity to Kroton is too excessive,” Undialu told The National.

“This is the very resource that people have owned for thousands of years. 

“Our ancestors have owned it and passed in on through the generations to today.”

He urged Prime Minister Peter O’Neill to review the decision because the “price is too excessive and we can’t treat our landowners this way”.

“If you can give back 30 per cent of Ok Tedi to the landowners, you (PM) must make the decision today.”

Undialu said the people were watching with interest as to what the Government’s next course of action would be.

He also called on the Kumul Petroleum (formerly National Petroleum Company of PNG) to provide a justification for such a high price.

The Kumul Petroleum Holding Limited would help the beneficiaries acquire Kroton Equity, as reported in The National on Tuesday.  

Undialu said other stakeholders in the PNG LNG Project only paid 30 per cent equity which should also apply to the landowners.

“We don’t want to pay 100 per cent, we only have to pay 30 per cent,” he said.

Beneficiary groups had called on the State to clarify the status quo for the 4.22 Kroton Equity, and its position on how it would help the beneficiaries saying they do not want to be left in suspense.

• A report on Page 36 of The National on Wednesday wrongly stated that John Kekeno was the chairman of the Prospective Development Licence One (Hides). It should have been Petroleum Development Licence One. The error is regretted.