Tuguba clan put in their claim for benefits

THE Tuguba clan that missed out on the signing of the licence-based benefits sharing agreement (LBBSA) has signed an agreement seeking better benefits for the custodians of the gas at Mt Gigira.
Spokesman Simon Ekanda said the custodians of the gas, who are from Tuguba, did not sign the LBSA because most of the names provided by  the Department of Petroleum and Energy were not Tuguba’s.
The Tuguba clan has presented an issue paper to the DPE and Minister for Petroleum and Energy to resolve the issues and to have the landowners sign a separate LBBSA to ensure the project goes ahead.
 “The GFLOs are most unhappy with the Kokopo LBBSA.
“Although some of the landowners signed, many did so due to duress or a lack of understanding of the actual agreement,” Mr Ekanda said.
He said a significant number of landowners did not sign the Kokopo LBBSA because some fundamental issues must be resolved first which were not addressed at the LBBSA.
Mr Ekanda said these issues include social mapping, project information, royalty entitlement, free equity entitlement, indirect equity option price, indirect equity exercise period, unitisation of licence area applying to benefits, condensates, additional gas reserves, pipeline expansion, gas for generation, NGC manager/trustee of landowner interest, landowner umbrella company and payment of outstanding obligations.
Mr Ekanda said under the Oil and Gas Act the National Gas Corporation is mandated to act as trustee.