NPCP Pays K86.4million dividend to the State through IPBC

The National Petroleum Company of PNG (NPCP) has delivered yet another record K86.4 million dividend payment to the State through the Independent Public Business Corporation (IPBC).

 NPCP Managing Director Wapu Sonk while presenting dividend cheque said NPCP was proud to deliver another substantial dividend to the State through IPBC as a half yearly dividend.

“Despite the decline in oil price, NPCP was able to deliver results because we have a very small operational exposure as a new company unlike other oil and gas companies.

“Also as a State owned National Oil and Gas Company, we are proud to deliver a record K86.4m on top of K415million paid last year.

“This brings to a total of K501.4m dividend payment to IPBC as a shareholder of NPCP in a very short history in the existence of NPCP,” Mr Sonk said.

The Managing Director stated that as a NOC, NPCP will strive to deliver to the Government and people of Papua New Guinea’s expectation.

 Mr Sonk also put on record straight that NPCP is only a Joint Venture Partner in the PNG LNG Project holding 16.57% of the State’s interest Project.

That means NPCP only get dividend distribution from the Project when ExxonMobil does make dividend distribution.

He also made it clear  in correcting various misleading information pertaining to Sate’s revenue from PNG LNG Project  that the other forms of revenue related to the PNG LNG Project come in the form of Tax, Royalties and Development Levies.

“Tax is by law payable to Internal Revenue Commission (IRC) whilst Royalty and Development Levies are again by law payable to Treasury through the Department of Petroleum and Energy, Mr Sonk said”.

He said Papua New Guineans need to understand the difference because there are so many wrong and misleading information being disseminated by earthier people with vested interest or people who failed to understand the realities causing unnecessary expectations on the Company (NPCP).

The Managing Director stressed,” on the issue of SWF, when it is set up, NPCP will declare a dividend to the shareholder (State) just like today  and depending on the Organic law on SWF, we will be either pay directly to SWF or paid to Treasury for purposes of Budget.”

Freddy Mou