Landowners from Moran (PDL 2) and Kutubu (PDL 5) are the first beneficiary groups to exercise the Kroton Equity Option through the Vendor Financing arrangement with Kumul Petroleum Holdings Limited.
Representatives from both beneficiary groups signed the documents to exercise the option entitling them to their share of the 4.27 per cent indirect interest in the PNG LNG project.
Sakai Kei, General Secretary of Namo-Aporo Landowner Association of PDL 2, and Pape Punga, Chairman of the Moran Landowners Association from PDL 5 both signed instruments yesterday.
Under the Umbrella Benefit Sharing Agreement (2009), 76 per cent of the 4.27 per cent Kroton Equity Option is shared among the PDL areas.
Under the UBSA, PDL 2 receives 12 per cent while PDL 5/6 receive 3 per cent. The equity is further distributed to individual clan groups and individuals.
PDL 2 and PDL 5 are part of the Brown Field region which are existing oil and gas producing areas.
Sakai Kei from PDL 2 said it was a unilateral decision by his group to exercise the option given the looming deadline.
Pape Punga of PDL 5 said there were still outstanding issues such as the License Based Benefit Sharing Agreement (LBSA) which needed to discussed.
He said he was happy that discussions will be held within the next two weeks in a forum to be organised by KPHL
The signing by PDL 2 and PDL 5 follows the signing by Governors from Southern Highlands, Hela, Central and Gulf also exercised the option.
(L to R): Sakai Kei and Pape Punga.