Businessman supports calls for LNG shutdown

Prominent businessman and landowner leader of Hides PDL 1, Larry Andagali, has supported the calls by Hides PDL 7 landowners to shut down the LNG project indefinitely.

He said PDL 1 landowners will join as well because he claims the Government has taken six-and-a-half years, since the signing of the final LBBSA agreement (Dec 7, 2009), to kick-start the PNG LNG Project.

Andagali says the Government has turned a “blind eye” on its people through the slow clan vetting and landowner identification process.

He said the provincial government supported an NEC-approved “beneficiary group” to negotiate and manage the 4.27 percent Kroton equity, which does not represent the PDL1 landowners’ interest.

“ExxonMobil and Oil Search must comply to our call and shut down the project. So far we have been patient and guaranteed 250 loads of LNG cargo, which is in the billions of Kina and to date, landowners have not seen our benefits,” said Andagali.

“We do not want confrontation. If this call is not adhered to, then you face the full force of LNG landowners and we are now calling on all landowners from Papa Lea Lea to Juha to join forces,” Andagali further said. 

He says social mapping and landowner identification process is the number one procedure any developer should follow under law. He thinks the developers have failed in this project.  This process will identify legitimate clans and their leadership is crucial to carrying out the following:

  • Develop their future generation’s benefit management trust; 
  • Develop infrastructure development plan to spend K120m per annum in IDG grants (previously called MoA funds);
  • Develop proper umbrella company structure to manage 30 percent of its community investment programs from their 2 percent royalty and 2 percent free equity benefits; 
  • Develop proper ILG cash distribution processes so that 40 percent cash component of royalty and equity benefits are paid direct into the clan ILGs accounts; and  
  • Raise 4.27 percent Kroton equity.
Press Release