Barriers to the distribution of LNG payments for landowners must be removed says Oil Search Managing Director, Peter Botten.
In his speech during the Prime Minister Breakfast event on Thursday, Botten called for the removal of barriers hindering the fair distribution of LNG benefits to landowners.
In his update to the business community on the gas resource sector, Botten said a pre-requisite for developers investing in PNG and engaging with the Government, Landowners, and stakeholders was to ensure ‘fair value distribution.’
He said this must be reflected through how developers help the state develop infrastructure, address service delivery and support both economic and social development in the country which the people feel is of the right value.
Botten said so far over K3 billion has been paid by the project in royalties, development levy’s and equity distribution to the state and landowners since 2014.
“I believe there’s a broad feeling in the country that recent developments have delivered little over the last few years. I don’t think this is true. But the industry must demonstrate and must be prepared to address the debate of fair value distribution,” he said.
“We certainly need to improve our benefits and how they’re distributed from our projects before new projects can be contemplated.
“Benefit delivery from PNG LNG must improve. Landowners must be paid. The money is there. Some have already been paid. The barriers to distribution must be removed.”
Prime Minister, Peter O’Neill, stated during the event that companies such as Oil Search, Exxon Mobil, and Total continued to have the Governments confidence hence they will work closely with them in the sector.