Report reveals failure to provide K72.9mil oil and gas receipts

Bank of PNG has failed to produce receipts for oil and gas development levy and royalty payments totaling K72.9 million, according to a report.
Those receipts were for payments made by ExxonMobil PNG Limited to the government in 2016, said a 2017 report produced by the PNG Extractive Industries Transparency Initiative (PNGEITI). The payments were K62.2 million for development levy and K10.7 million for royalty payments.
At the time the report was published, Bank of PNG had not provided the independent administrator of the report with confirmation of the receipt. The report includes payments done by Oil Search Ltd and ExxonMobil PNG LNG.
Oil Search pays development levy and royalties to the Department of Petroleum and Energy (DPE) by cheque while ExxonMobil pays the levy and royalties to Bank of PNG via electronic transfer and sends remittances advices to DPE, said the report.
ExxonMobil PNG said they have been directed by the Government to this payment method.
The DPE only provided receipts for Oil Search payments of K7.4 million in development levy and K26.3 million in royalty. These payments have been 95 per cent reconciled.
The 2016 report by the PNG EITI is the fourth under the department of Treasury. It was endorsed by Treasurer Charles Abel.
“The 2016 financial year report is the culmination of continued commitment, collaboration and efforts by the Government, extractive industries and civil society organisations to provide a comprehensive picture of the sector, its impact on the economy and our management of the revenues and benefits derived,” Abel said.
EITI is a global standard for the good governance of oil, gas and mineral resources. It seeks to address the key governance issues in the extractive sectors.
PNG became a candidate of the EITI in 2014 and is looking to deal with transparency issues to improve it image for foreign investment.