Post Courier | September 21, 2018
THE Moran oilfields landowners are threatening to shut down the gas fields if the remaining balance of K35 million State commitment to them is not released before the World Leader Summit (APEC) in November.
Liya Molo, a chief from the Paua clan in the petroleum development licence-5 (PDL) area, claimed that though there was an existing authority on the ground to manage the funds, both political and administrative system in Waigani are capitalising on the excuse of not having an authorised authority, resulting in the delayed release of funds.
“Moran field or unit reservoir straddles three different licences namely PDL-2 block 2006, PDL-5 block 1934 and PDL-6 block 1933.
“In geotechnical terms, oil in PDL-2, PDL-5 and PDL 6 are in communication, therefore the oil from this three licensed areas are pulled together.
“The landowner leaders in 2009 have entered into an agreement and also formed three associations to manage funds (PDL-2 Apporo Uri Landowners Association, PDL-5 Homa Paua People Association and PDL-6 Pai Parapia Resource Owners Association,” Mr Molo said.
He said numerous attempts have been made to have the funds released but attempts have been in vain.
It was noted a document produced on a decision by National Executive Council on May 19, 2011, on the allocation and implementation of outstanding memorandum of understanding funds and projects, shows that some funds have been released to Kutubu, Gobe, Moran and Hides Gas.
For Moran, of the K50 million committed, K15 million was released with an outstanding balance of K35 million.
The NEC in its decision 86/2011 during meeting number 15/2011 on the status of the state’s outstanding commitment to Kutubu, Gobe Moran oil projects and Hides Gas on electricity project costed K235 million, agreed in connection with the Licensed Based Benefits Sharing Agreement in 2009.
This showed that some funds were released to the four areas.
NEC approved the breakup of another K100 million in the 2010 supplementary budget.
Mr Molo said this did not eventuate with the remaining K35 million to be split among the three licenced areas on Moran oilfield to carry out the intended projects which are on hold due to unavailability of funds.
He said any individuals, company or group that has interest in the K35 million should approach their associations.
“The state and its agents should not entertain individuals or groups but should deal with the three recognised associations,” he said.