The Minister for Petroleum, Dr Fabian Pok has announced that the LOBID (Landowner Beneficiaries Identification) exercise for 2019 will begin in Hides area to identify beneficiaries for PDL 1 and PDL 7 in the PNG LNG Project site.
The LOBID exercise, which was formerly known as clan vetting, is an important prerequisite, for a Ministerial Determination under s.169A of the Oil and Gas Act.
Minister Pok said; “The main objective of the LOBID exercise is to conduct a review with the potential beneficiaries in Hides and across the PNG LNG Project footprint, all the information on Project Area Landowners that have been collected, collated and finalised. This needs to be done so that Ministerial Determination is fulfilled, before any release of legislated cash benefits.”
“The main outcome from this LOBID exercise will be the formal determination of PNG LNG Project Area Landowners (PALOs) to be formally accepted as Beneficiaries and be legitimately recognised as recipients of direct cash benefits - royalty and equity (dividends).
“As Minister for Petroleum, and on behalf of the government, I announce the LOBID exercise for this year, to begin in Hides so that this important prerequisite, being Ministerial Determination under s.169A of the Oil and Gas Act can be completed to pave the way for eventual payments of cash benefits that are promulgated in the Oil and Gas Act without any further delay.”
The Government through the then Department of Petroleum & Energy (now Department of Petroleum) since 2013 began the exercise to ensure correct project beneficiaries were identified.
“Most of these work has been completed, however, it was stalled due to various reasons and challenges posed by various stakeholders. It is only the PNG LNG Plant site beneficiaries (Boera, Porebada, Lealea & Papa villagers) that have been successfully identified and corresponding MRDC requirements completed therefore they are receiving their legislated cash entitlements (royalties and equity dividends),” Dr Pok said.
“I would like to emphasise here again that after completion of the LOBID exercise, submissions from each License areas will be made to the Minister for Petroleum, upon which Ministerial Determinations under s.169A of the Oil and Gas Act will be made. The Ministerial determinations with all intents and purposes should reflect the benefits splits as agreed to and executed in the UBSA and the relevant LBSAs.”
Dr Pok said; “This is an important exercise that will determine legitimate beneficiaries over the life of the PNG LNG project, therefore it is incumbent on anyone who has an interest, both directly and indirectly, to be present in various project sites to either support or participate in this LOBID process.”
“The Department of Petroleum will not pay for anyone to travel to their respective villages. Anyone who has an interest in the LOBID process must find his or her own way back home, because the clan vetting project will benefit not only current but future generations as well.”
“I understand that there may be many outstanding issues that people may want to use to disrupt this very important exercise. However, as responsible stakeholders, we need to support the completion of the LOBID work for the long-term benefit of legitimate beneficiaries.”
“We need to support the LOBID work as we work in parallel with the Government to address other outstanding or legacy issues.”