PNG LNG Project

PNG needs prudent macroeconomic policies: IMF

This was from the executive board of the International Monetary Fund (IMF), in consultation with PNG on November 29, 2016.

“As a commodity exporter, the PNG economy has been hit hard by the drop in world commodity prices and a major drought. The authorities have responded to these shocks through fiscal tightening and a combination of modest exchange rate depreciation and FX sales,” the board said in a statement.

“Strong economic growth driven by the start of the PNG LNG project, has tailed off amidst weak non-resource sector growth.

Landowners offer K725 million to acquire direct interest in PNG LNG Project

Petroleum Development License (PDL) wellhead and facilities landowners include Greenfield PDL 1, 7, 8 and 9 and Brownfield PDL 2 and 4.

The landowners, whose customary and traditional lands hold and contribute in excess of 95% of the total gas volumes of 10.5 trillion cubic feet (tcf) have formally offered to a purchase price of K725Million ($US 230million) to acquire direct equity ownership and interest of 4.27% from the National Governments 16.58% in the PNG LNG Project.

Landowners demand clarifications from KCH

The Petroleum Development License (PDL) wellhead and facilities landowners include Greenfield PDL 1, 7, 8 and 9 and Brownfield PDL 2 and 4.

The leaders in a joint statement said they needed clarification from KCH on this issue.

“We cannot comprehend why KPHL would now demand the Beneficiary Group to pay a massive US$26I million for every one per cent indirect equity on the 4.27% in the same project,”  Landowner representative and Chairman of PDL 1 Dickson Ango said.

EMPNG invites Hides community for a tour

The program, launched in November 2016, complements EMPNG’s Community Development Program by enhancing the community’s understanding of the Plant’s operations. 

EMPNG Hides superintendent, Ken Rhyason, said the tours were looking to take away the mystery about what happens inside the fence and to build on EMPNG’s established relationships with Hides communities to create a stronger more connected society. 

The sessions are complemented by other discussions around healthy living, education and community development in general. 

PNGDF, Police leave for Hela

They will join an advance team from the Highlands region, already on ground, to bring the total number of security personnel to 300.

The operation was approved by the Government based on the Security Risk Assessment Report from the Police Commissioner and will commence on Monday, January 9.

The report identified Hela as high risk due to heavy presence of unlicensed firearms, many of which are high-powered.

Interim committee set up for Green Field

It is hoped the interim leadership also exercises the “Kroton Equity Option” to close down their share of the 4.247 per cent indirect interest in the PNG LNG Project.

The Green Field areas represent PDL 1 and 7 (Hides 1 and 4), PDL 8 (Angore), and PDL 9 (Juha) and pipeline segments, and are areas where the clan vetting process has not been conducted to identify legitimate landowners and clans.

Minister for Petroleum and Energy, Nixon Duban, has set up the interim committee’s and it is expected that the Kroton Equity Option will be exercised by the end of January.

Govt withdraws vendor financing option

However, they will still educate beneficiaries on the option and provide it to them if they wish to exercise it.

Kumul Petroleum Holdings Limited Managing Director, Wapu Sonk, announced the government decision following disagreements from beneficiaries.

“We had a push back from different groups so were allowing them to go and finance the option before the 31st of December then we’ll put our option back on the table again if the beneficiaries haven’t found the financing.

Portion 152 LOs want to know royalty figures

The question was posed by a Seri Asi Sabori, a councillor from Porebada Village and also a landowner.

Sabori along with his clans men attended the launching of the ‘Beneficiary Clan Accounts’ process officiated by Minister Duban.

His attempt to raise the question after the launch was rejected but he was informed to raise it during the account registration  process.

Speaking to Loop PNG, he said hewanted to know one thing which was not mentioned.

Changes to UBSA will benefit landowners, says PM

Prime Minister Peter O’Neill said the National Executive Council (NEC) has approved a discounted Option Exercise Price, which will enable beneficiaries to raise the finance to buy shares. 

Through this they can reap the returns they could expect through dividends from their shareholding in Kroton, the company overseeing the State’s interest in the PNG LNG project.

“The original Option was granted under the terms of an agreement that was reached between landowners, provincial governments and the National Government in 2009,” PM O’Neill stated.

NEC extends Kroton shares acquisition

Prime Minister Peter O’Neill revealed this in Parliament today.

“Through the Umbrella Benefit Sharing Agreement which was signed in Kokopo in 2009, the LNG provinces and landowners have the option to acquire 4.27 per cent in Kroton, a direct equity in the PNG LNG project.

“Under the agreement, the landowners and provincial governments will pay the State close to US$1.1 billion for 4.27 per cent equity in Kroton.