Representatives of PDL 4 – Gobe have called on Kumul Petroleum Holdings Limited to establish a separate commercial entity so that payments from their commercial shares in the PNG LNG Project are deposited there.
The representatives, before signing ‘Unit Application Forms’ to exercise the Kroton Equity Option, called on KPHL to establish a separate entity for their payments and not to park the payments in Petroleum Resources Gobe under the Mineral Resources Development Company (MRDC).
Jeffrey Kairi, from Zone Two PDL 4, said the Landowner Benefit Sharing Agreement (LBSA) agreed to by them has a clause calling for the establishment of a separate entity which he says is called ‘Gas Resources Gobe Limited.’
He said they want payments from their commercial share to go directly to that entity and not PRG as it represents payments from oil.
Kairi alleges they have seen very little payments from the Gobe, Kutubu, and Moran oil fields, parked in MRDC and from the investments the entity has made.
“You need to rescind your decision. We have a house already established as per the LBSA. Gas Resources Gobe Limited, that is the trustee company that will manage our interest for PDL 4,” said Kairi.
He further called for a ministerial determination on social mapping and landowner identification.
“Right now you are dealing with any Tom, Dick, and Harry. I am not a landowner unless you give me the prominence through Ministerial determination. Then you will put us in a better perspective.
KPHL Managing Director, Wapu Sonk, clarified that the payments going to MRDC will not be used for any other purpose other than to be paid direct to beneficiaries.
He said KPHL was only a clearing house for the payment however, a request for a separate entity can be facilitated if all beneficiary groups agreed to it.
“If you want to take it (payments) out and have another gas company that’s possible as well. That same message must come from all the other which seems to be happening.
“So if it’s a common position by all the other groups to establish a separate company, so MRDC can manage all the oil related revenues and other interest that you have invested in separately and keep all the LNG revenues separate in a separate structure, that has to be presented to Government collectively by every group and it can be facilitated,” said Sonk.
Regarding the ministerial determination, Sonk said Minister for Petroleum and Energy, Nixon Duban, has gone ahead to establish interim committees for the beneficiary groups, however, that has been stalled due to a probable change in authority with the Department of Petroleum and Energy.
“He (Minister) was already starting to work with all the groups and even as far as establishing interim leadership to move all the issues forward.
“But there’s also been a departmental head change recently as well so, that’s why the discussions haven’t picked up but as soon as those issues get sorted this week, I think the Minister is going to be ready to discuss some of those issues,” he said.
Kairi is one of six representatives from PDL 4 – Gobe Zone 2 to have signed ‘Unit Applications Forms.’
A total of 10 representatives signed which include Zone 1 (one representative), and Zone 3 (3 representatives).
PDL 4 now owns a 3 per cent stake in the 25.75 per cent shares in Kroton No 2 Limited, then Special Purpose Vehicle which holds the States 16.57 per cent interest in the PNG LNG Project.
Other beneficiaires to have signed the agreement recently include:
- PNG LNG Plant site (Papa, Lealea, Boera, Porebada)
- PNG LNG Pipeline (Segment 1 – 8)
- PDL 9 (Juha)
- PDL 5 (Moran)
- North West Moran
- Fly River Provincial Government
- Gulf Provincial Goverment
- Southern Highlands Provincial Government and Hela Provincial Government
- Central Provincial Government