Tag Archives: Exxon-Mobil

Frustrated LNG landowners dig up highway

Dug up highway near PNG LNG project gas plant

Radio New Zealand | 1 November 2017

Frustrated landowners have dug a huge trench in an access road to projects linked to Papua New Guinea’s liquefied natural gas project in Hela Province.

The road runs to the Oil Search Nogoli Gas Plant and the ExxonMobil Gas Conditioning Plant.

Our correspondent said the landowners were believed to have commandeered an excavator and dug up the road early on Tuesday to show their frustration at government delays in making their royalty payments.

He said neither the government or Exxon Mobil had yet commented on the protest action.

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Trucking firm stops oil and LNG services over ongoing holdups

The National aka The Loggers Times | October 12, 2017

TRANS Wonderland Limited, one of the major road transport companies in the country, has stood down all its trucks serving the Hides and Kutubu oil and LNG operations through the Komo, Tari, Nipa and Mendi roads yesterday.
Managing director Larry Andagali told The National the road from Mendi to Tari, especially the Wara Lai, Poroma, Tindom Hill and Nipa sections have turned into a “hell hole”.
Sections of the Nogoli-Kobalu road are in similar condition.
“These roads are the key supply routes to support PNG’s oil and LNG production and operations facilities,” Andagali said.
He said the company’s truck drivers were held up at gunpoint and ordered to return to where they were travelling from.
“In some instances our drivers were dragged out of trucks, stripped naked and robbed of their clothes, shoes and money.”
Andagali said the robbers also emptied fuel from rucks.
He said people in authority had disregarded such lawlessness in the resources areas.
“It does not take a rocket scientist to understand that PNG needs oil tax and oil production to continue to support the national budget.”
Andagali said the Government needed LNG taxes which would hit the national budget in 2019 and 2020 after all LNG assets depreciated under the “accelerated depreciation” clause in the gas agreement.
“PNG’s reputation hangs in the balance if the project cannot continue to operate because essential cargo to keep these operations going is delayed and cannot reach them in time.
“Such actions by our people must be condemned in the strongest possible terms and a senior citizen of Hela and Southern Highlands.”

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Papuan landowners in PNG to receive first LNG project royalties of K15m

Boera village in Central province landowners from the PNG LNG Project to receive royalties. Video: EMTV News

Meriba Tulo in Boera village | Asia Pacific Report | September 13, 2017

After more than three years and 200 shipments, landowners of Boera village in Papua New Guinea’s Central province have became the first beneficiaries from the PNG LNG Project to receive royalties.

This followed the release of royalty benefits for PNG LNG Petroleum Processing Facility Licence 2 (PPFL2) area landowners to the Mineral Resources Development Company (MRDC) from the Department of Petroleum and Energy, Department of Finance, and the Central Bank.

Royalty payments for the four villages of Boera, Papa, Porebada and Rearea are in line with the Ministerial Determination number G692, 2015, which will see 83 clans receive a share of K15.6 million (NZ$6.7 million).

According to the Oil and Gas Act 1998, only 40 percent is to be paid as cash disbursement to landowners, with the remaining 60 percent to be set aside in two trusts – the Future Generation Trust Fund (FGTF) and Community Investment Trust Fund (CITF).

Royalty Payment Allocation:
1. Cash Payment to Landowners: K6,250,701.00
2. Community Investment Trust Fund: K4,688,026.00
3. Future Generation Trust Fund: K4,688,026.00

From the K6,250,701.00 cash allocation, this is further broken up according to the following:
1. Rearea Village: K1,746,946.00
2. Papa Village: K1,746,946.00
3. Boera Village: K1,352,027.00
4. Porebada Village: K1,154,755.00
5. Others: K250,028.00

Meriba Tulo is a senior reporter and presenter and currently anchors Resource PNG as well as EMTV’s daily National News. EMTV News items are republished by Asia Pacific Report with permission.

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K15M For LNG Plant Site Landowners Delayed Again

Melissa Yafoi | Post Courier | September 7, 2017

Highlands landowners from the LNG resource site yesterday stopped the K15 million payment for their coastal counterparts.

And their actions are likely to cause a shutdown at the plant site in Port Moresby as a result.

They insisted no payments be made until their own houses were put in order including the clan vetting process and other outstanding payment commitments made by the O’Neill government over the years were honoured.

They said failure to pay them will result in their shutting down of the project from the upstream end.

Their action is likely to result in the same threat from the coastal provinces who have resolved their outstanding clan ownership issues and only awaiting the first K15 million payment.

The Central landowners were about to be paid the amount having fulfilled all the legal requirements until yesterday when a demand for stop payment was made to the government through the Department of Petroleum and Energy.

The LNG site landowners insistence were despite court actions and disputes and the outstanding clan vetting process on ownership of the land which the project is located delaying their payments.

All monies owed to them are banked in trust accounts including those from Central Province.

In the ransom-like situation newly appointed Petroleum and Energy Minister Fabian Pok was caught off guard lamely saying he was new to the job and needed more time to understand the outstanding issues.

This is despite the Government’s previous hard line stance in paying landowners that resolve their landownership issues ahead of those pending in courts, the mediation process and other resolution arbitration.

Departmental Deputy Secretary Kepsey Puiye and Mineral Resources Development Company Limited external affairs general manager Imbi Tangune also succumbed to the demands saying it was sensitive and payment would not be made to the Central landowners.

Mr Puiye said the K15 million will be paid to the plant site land owners once the minister gives his approval.

He said of the amount 60 per cent will be kept by MRDC as per the Oil and Gas Act under section 176 and only 40 per cent will be paid for immediate investment.

“This is one of the very important projects that will have a profound effect on the economy of the country that is why it is important that the minister needs to appreciate all the issues for the upstream.

“Because the upstream holds the pipeline and that is important so the minister is also very cautious of the implications it will have on the upstream landowners because projects such as this is fundamentally important so he is saying let me look at the issues first.

“The plant site landowners need to appreciate that once the upstream is not alright then we are going to destroy the project,” he said.

Mr Tangune added: “I’m actually very sensitive to the minister’s need to ensure that he understands the issues surrounding payments for the plant site, licence areas and the pipelines so when he is actually comfortable he will give us the timeline for us to make that payment.

“We’ve done everything and the money is with us and we have done everything to pay the money to the land owners.

We ask our landowners to be patient because money is coming, it’s not an issue of its not, it’s an issue of when and I think we have done everything possible to give money to landowners whatever they are entitled to.”

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Benefits Delivery From PNG LNG Must Improve

Oil Search Managing Director Peter Botten Has Called For An Improvement On The Disbursement Of Funds Owed To Landowners Of The PNG LNG Project

Post Courier | August 21, 2017

Oil Search managing director Peter Botten has called for an improvement on the disbursement of funds owed to landowners of the PNG LNG project.

The calls are in light of the ongoing debate pertaining to the benefits being derived from the oil and gas business.

Speaking at a business breakfast last week hosted by the Business Council of Papua New Guinea (BCPNG), Mr Botten told business and government leaders including the Prime Minister Peter O’Neill, that he believed there is a broad feeling that the recent developments have delivered little over the last few years.

“Benefits delivery from PNG LNG must improve. Landowners must be paid.

“The money is there, some have already been paid but barriers to revenue distribution must be removed,” he said.

“Over K3billion has been paid by the project in royalties, development levies and equity distributions to the State and landowners since 2014.

“Maybe not as much as some people expected but still it’s a considerable sum,” the managing director said.
Prior to these statements, Mr Botten had told the business and government leaders that with the right environment oil and gas production can more than double over the next five to seven years.

“Potential investment over K60billion in developments, appraisal and exploration are possible in this time frame. Construction can lead to over 20,000 new jobs with significant other spin off economic activities,” he said.

However he stressed there were many issues to resolve to make this happen.

He said a prerequisite to success is developers engaging with government, landowners and indeed the whole country to demonstrate fair value distribution for all parties must be achieved from existing projects.

“One that people feel is right value for resources extracted, one where developers work with state to deliver infrastructure address service delivery and support both economic and social development of the country,” Mr Botten said.

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How resource companies exploit a corrupt and dysfunctional government

There has been a barrage of media recently about mining companies teaming up with a range of parters to deliver health-care and other services direct to the community.

Newcrest Mining and the Australian government have announced a partnership to improve maternal health, Exxon-Mobil is partnering the Cancer Foundation and The Voice, Barrick Gold is delivering agriculture training in Porgera.

Praise be to the resource companies, willing and able to step in where government fails its people – and no matter the role these same companies play in causing the very diseases, illnesses and other problems they are so happy to patch up with their band-aid PR!

But there is an even more sinister side to these good news stories that further illustrates how mining and other resource companies feed off a corrupt and dysfunctional government.

If government was doing its job and delivering decent basic services to the population, mining and resource companies would not have the opportunity to appear as ‘knights in shining armour’ the good news stories would disappear and, most importantly, customary landowners would not feel compelled to give away their land in the desperate hope that mining and logging companies might provide some basic services.

Resource companies are able to thrive in PNG because of, not despite, a corrupt and dysfunctional government. They rely on bad governance to open the doors to what they most desire – land and the resources it contains.

No matter the environmental and community destruction, their logging and mining cause, no matter the deaths, the violence against women, the unwanted pregnancies, the rape and prostitution, the pollution of rivers and loss of sustainable livelihoods when they can parade their social conscience in the media and have us all believe they are our saviours – just as long as we continue to give them what is most precious to us, OUR LAND!

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PNG LNG Willl Not Be Another Bougainville Crisis: Duban

The Mention Of Another Bougainville Civil War , As A Result In The Delay In The Payment Of The PNG LNG Project, As Speculated In The Debates In Australia In The Past Few Days “Is Nonsense And Unwarranted”.

Post Courier | June 14, 2017

The mention of another Bougainville civil war , as a result in the delay in the payment of the PNG LNG project, as speculated in the debates in Australia in the past few days is nonsense and unwarranted.
Petroleum Minister Nixon Duban was responding to questions put to him by the Post-Courier, on Tuesday, pertaining to reports carried in the overseas media on this issue.
While also in light of reports that had surfaced over the weekend of a planned protest by aggrieved landowners from the Central Province.
The protest did not eventuate at the plant site outside of Port Moresby.
However, the issue of royalty payouts to landowners came under the spotlight in Australia when questions were raised, by one of its senators as to why the Australian government through its Export Finance Insurance Corporation (EFIC) had not taken measures to ensure royalty payments were made.
The minister had expressed disappointment that some senior politicians had joined in the chorus inciting fear in the whole debate, reminding them that they were part of the O’Neill government until recently.
He had reiterated that the main reason for the delay of payment in the early payment of landowner benefits, was that many legitimate landowners had not been identified in the project area in Hela.
Mr Duban said PNG LNG project has a lifespan of over 50 years.
He said the landowners were fully aware and would not destroy something that would sustain their livelihood and that of the generation to come.
“Bougainville stemmed out from serious discontentment over what was poorly structured landowner benefits package.”
“PNG LNG landowners are given a much better deal with the foundation LNG project showing significant signs of expansion.
“I believe the growth potential will come with new opportunities and improved better deals for PNG and our landowners,” he said.
He assured investors and stakeholders that the project was in safe hands.

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