SHP, Hela leaders must tread carefully in sharing benefits

The National Letters

I REFER to your article,  “Hela, SHP to share funds, benefits” (The National, Nov 10, page 3).
The recent signing of the agreement on split of benefits derived from the petroleum sector in the Hela and Southern Highlands must be done with caution and apply all due diligence in law and as such take into account the concerns of all stakeholders.
My view is only on the LNG resources benefit splits/sharing.
It is public knowledge and undisputed fact that LNG PDL extraction areas are with-in the boundaries of Hela and produces more than 90 per cent of the LNG resources for the PNG LNG project. In this benefit sharing proposal put forth by the Interim Hela government it must be made clear to the Hela people.
Development levies and royalties derived from LNG resources in Hela alone can never be proposed for equal sharing, period! If this fact is absent in the proposed arrangement by Potape regime, there has to be a ratio sharing arrangement formulated by Department of Petroleum and Energy, National Planning, Provincial and LLG Affairs as well as ExxonMobil and Oil Search Ltd upon the two provincial governments coming into a consensus to submit a single proposal or separate proposals for vetting and endorsement.
Do we have to involve NEC in this exercise?
NEC has never come good on matters relating to Hela’s natural resource. Government agencies and resource developers are mandated to carry out this exercise with full application of law and with due regard to extractive industries resource benefit standards. Individual governors or provincial governments cannot be seen to be executing this arrangement at their own will.
Regardless of the lead provincial government (SHPG) in signing the PNG LNG agreement and UBSA/LBBSA prior to Hela becoming a province the arrangement/agreement must constitute that more than 90 per cent of the LNG resources are extracted out of Hela soil.
Potape, as a son of Hela, must be very mindful that LNG resource PDL areas are established within the tribal clan areas and affected LLGs of the Hela boundary.  Just because PNGLNG and UBSA/LBBSA agreement came into effect at the time of SHPG, this concern is insignificant when proposing benefits sharing at this point in time.
What is rightful for the people of Hela must be given to them at all cost, and what is rightful to the people of Southern Highlands must be given to them also. Fair sharing must not be seen as equal sharing but must be justifiable as to what portion of the benefit sharing each one could take.
Did the proposed arrangement put forth by the Potape regime take into these simple facts?

  • More than 90 per cent of LNG resources are extracted out of Hela soil;
  • affected Gas PDL areas under existing LLGs were commissioned as part of the new Hela province;
  • were the people of Hela consulted as to what those terms/clauses of the arrangement would have impact on the people and the development of the province;
  • can the Acting Governor for Hela with his assembly members conduct a Hela public forum to discuss matters or issues on this benefit sharing proposal;
  • did the benefit sharing proposed arrangement take into account not only the benefit from petroleum resources but any other business and investments including assets and liabilities owned by SHPG; and,
  • Under what circumstances the Acting Governor for Hela sees fit to rush this arrangement with SHPG as election is due five months away and a full mandated Hela Government is due in 2017.

    Hela Harapa
    Margarima, Hela