Three media stories published on New Years Eve foretell what could be a calamitous year ahead for the giant Exxon-Mobil Liquified Natural Gas (LNG) project in Papua New Guinea.
The LNG project has already faced countless delay's and shutdowns caused by landowner disputes, poor working conditions, deaths and allegations of corruption.
Now landowners (see below) are questioning why the government paid promised seed-capital to only 16 landowner companies from the Highlands region and made the payments in secret at a hotel outside the capital Port Moresby, rather than government offices where 2,000 people were camped out awaiting their payments.
The PNG Highlands, where the the natural gas is to be sourced, are famous for their warrior tribes and on-going ethnic rivalries, but police and intelligence officials have been warning for sometime, the landowners are now heavily armed with semi-automatic weapons and rocket launchers rather than traditional bows and arrows.
Landowners query March Girls payout
The National – Friday, December 31, 2010
LANDOWNER leaders from the liquefied natural gas (LNG) project areas have questioned the logic in conducting seed capital (business development grant) payments at the March Girls Resort in Central instead of at the petroleum and energy or commerce and industry offices.
They said the nature of the payments were highly suspicious since they only involved a few officials and landowner leaders.
Huri Kuni Development Corporation chairman Peter Laki, in a statement yesterday, called on Petroleum and Energy Minister William Duma and his commerce and industry colleague Gabriel Kapris to explain to the other 2,000 landowners waiting at Vulupindi Haus what was going on.
They also called on Duma and Kapris to fulfill their promises in making the MoA, seed capital and ministerial determination payments at the project sites in Hela.
“If there are any problems at the LNG sites, Duma, who is responsible for petroleum and energy, will be held responsible,” Laki warned.
He said the seed capital payments, conducted last Thursday, were improper because there was no social mapping and land demarcation carried out to identify which landowners received what amount for what piece of land.
Duma and Kapris should not be congratulated for fast-tracking the business development grants payments as proper explanations were still needed.
“Government ministers will be the ones setting fire to the LNG project and, therefore, they have to be very careful when dealing with the landowners and their gas resource.
“Government ministers, departmental heads and senior public servants must themselves come out and clearly explain to the owners of LNG waiting at Vulupindi Haus in Waigani and at project sites in Hela how the business development grants were paid out,” Laki said.
He, however, called on the government to fulfil promises made by its ministers and coalition partners in bringing the outstanding MoA and ministerial commitments to the project sites in Hela.
They said the nature of the payments were highly suspicious since they only involved a few officials and landowner leaders.
Huri Kuni Development Corporation chairman Peter Laki, in a statement yesterday, called on Petroleum and Energy Minister William Duma and his commerce and industry colleague Gabriel Kapris to explain to the other 2,000 landowners waiting at Vulupindi Haus what was going on.
They also called on Duma and Kapris to fulfill their promises in making the MoA, seed capital and ministerial determination payments at the project sites in Hela.
“If there are any problems at the LNG sites, Duma, who is responsible for petroleum and energy, will be held responsible,” Laki warned.
He said the seed capital payments, conducted last Thursday, were improper because there was no social mapping and land demarcation carried out to identify which landowners received what amount for what piece of land.
Duma and Kapris should not be congratulated for fast-tracking the business development grants payments as proper explanations were still needed.
“Government ministers will be the ones setting fire to the LNG project and, therefore, they have to be very careful when dealing with the landowners and their gas resource.
“Government ministers, departmental heads and senior public servants must themselves come out and clearly explain to the owners of LNG waiting at Vulupindi Haus in Waigani and at project sites in Hela how the business development grants were paid out,” Laki said.
He, however, called on the government to fulfil promises made by its ministers and coalition partners in bringing the outstanding MoA and ministerial commitments to the project sites in Hela.
Exxon-Mobil warned to vacate sites
The National – Friday, December 31, 2010
By STEPHANIE ELIZAH
A GROUP of landowners of LNG project sites in Southern Highlands have warned that there will be no K50 billion PNG LNG project unless business development grant (BDG) issues are resolved.
They also warned LNG developer ExxonMobil to be prepared to vacate all project sites next week as talks of sabotaging the project spreads.
The landowners said this in response to the news of 16 legitimate landowner companies were paid a total of K89.208 million for spin-off business ventures last Thursday at March Girls resort outside Port Moresby.
LNG landowners pressure group team leader Henry Duguno, in a statement, said a recent media statement by acting Prime Minister Sam Abal that all landowner companies would be paid their seed capital did not materialise when only 16 identified companies were paid.
“Which identification process did the government use to identify these landowner companies when the legitimate landowners were still waiting outside the Vulupindi Haus to be paid?” Duguno asked.
He said the legitimate landowners were still waiting for their payment and suggested that if the state and the developer were interested in ensuring the LNG continue, all parties must revisit initial agreements signed in the LBBSA and UBSA to develop a revised agreement.
“Sentiments expressed by all leaders who took up the stage expressed that the LNG would be deterred from its early works.
“This will continue for an indefinite period until all the substantive matters in this issue are resolved amicably between the landowners, the state and the developers,” Duguno said.
A GROUP of landowners of LNG project sites in Southern Highlands have warned that there will be no K50 billion PNG LNG project unless business development grant (BDG) issues are resolved.
They also warned LNG developer ExxonMobil to be prepared to vacate all project sites next week as talks of sabotaging the project spreads.
The landowners said this in response to the news of 16 legitimate landowner companies were paid a total of K89.208 million for spin-off business ventures last Thursday at March Girls resort outside Port Moresby.
LNG landowners pressure group team leader Henry Duguno, in a statement, said a recent media statement by acting Prime Minister Sam Abal that all landowner companies would be paid their seed capital did not materialise when only 16 identified companies were paid.
“Which identification process did the government use to identify these landowner companies when the legitimate landowners were still waiting outside the Vulupindi Haus to be paid?” Duguno asked.
He said the legitimate landowners were still waiting for their payment and suggested that if the state and the developer were interested in ensuring the LNG continue, all parties must revisit initial agreements signed in the LBBSA and UBSA to develop a revised agreement.
“Sentiments expressed by all leaders who took up the stage expressed that the LNG would be deterred from its early works.
“This will continue for an indefinite period until all the substantive matters in this issue are resolved amicably between the landowners, the state and the developers,” Duguno said.
Hides licence holder questions commitments:
The National – Friday, December 31, 2010
OUTSPOKEN Hides PDL1 landowner leader Simon Ekanda has labelled the ministerial commitments as bribery money just to induce resource owners to sign various LNG agreements.
The Tuguba clan chief, who claimed to be the custodian of the prophetic “gigira laitebo” (gas), said there was no such thing as ministerial commitment stipulated under the Oil and Gas Act.
He said any ministerial commitment made by state ministers during the Kokopo umbrella benefits sharing agreement (UBSA) and licence-based benefits sharing agreement (LBBSA) were mere lip service to make resource owners give away their rights and resources.
“What sections of the Oil and Gas Act make provision for a ministerial commitment?” Ekanda asked.
“These are fat lies just to induce resource owners to sign.
“Despite the National Court ruling on the Kokopo UBSA as illegal and a non-binding agreement, the ministers went ahead and made unsubstantiated commitments with no effect.
“In the oil and gas, there is no UBSA or LBBSA. There one provision that is mentioned in the Act is the development forum.”
He said the memorandum of agreement (MoA) grants must be tied to projects and should not be released until and unless previous MoA projects for existing oil and gas project areas proof otherwise.
“The National Planning should be in a better position to advise the government as to how they do with the fund because they oversee the MoA project.
“Otherwise, the MoA funds will be a waste because precedence has been already set in not acquitting previous MoA funds,” he said.
The Tuguba clan chief, who claimed to be the custodian of the prophetic “gigira laitebo” (gas), said there was no such thing as ministerial commitment stipulated under the Oil and Gas Act.
He said any ministerial commitment made by state ministers during the Kokopo umbrella benefits sharing agreement (UBSA) and licence-based benefits sharing agreement (LBBSA) were mere lip service to make resource owners give away their rights and resources.
“What sections of the Oil and Gas Act make provision for a ministerial commitment?” Ekanda asked.
“These are fat lies just to induce resource owners to sign.
“Despite the National Court ruling on the Kokopo UBSA as illegal and a non-binding agreement, the ministers went ahead and made unsubstantiated commitments with no effect.
“In the oil and gas, there is no UBSA or LBBSA. There one provision that is mentioned in the Act is the development forum.”
He said the memorandum of agreement (MoA) grants must be tied to projects and should not be released until and unless previous MoA projects for existing oil and gas project areas proof otherwise.
“The National Planning should be in a better position to advise the government as to how they do with the fund because they oversee the MoA project.
“Otherwise, the MoA funds will be a waste because precedence has been already set in not acquitting previous MoA funds,” he said.
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