Prime Minister Hon. James Marape has strongly defended the Government’s approach to Restructuring the 4.27 Percent Equity Benefit associated with the PNG LNG Project, assuring Parliament and the people of Papua New Guinea that all Legitimate Stakeholders — including Plant Site Landowners, Pipeline Communities, Upstream Landowners, and Provincial Governments — will be fairly represented and benefit equitably under the proposed Structure.
Responding in Parliament today to Questions raised by Opposition Member for Hiri-Koiari Hon. Keith Iduhu and Supplementary Questions from Former Prime Minister and Member for Ialibu-Pangia Hon. Peter O’Neill, Prime Minister Marape said the Government’s intention was not to divide or marginalise any Landowner Group, but rather to preserve and secure the long-term Wealth generated from the PNG LNG Project for current and future generations. Prime Minister Marape stressed that the Restructuring process was being undertaken in the spirit of the 2009 Kokopo Umbrella Benefit Sharing Agreement (UBSA), signed during the National Alliance Government under the late Grand Chief Sir Michael Somare. “I want to first indicate to this House (Parliament) that the Decision taken is not divisive to the country or to the PNG LNG Landowners and Provincial Governments who are important Stakeholders in the PNG LNG project,” Prime Minister Marape told Parliament. “It is not offensive to them also. It is in direct fulfilment of a kind gesture by the National Alliance Government Policy in 2008-2009 when the Kokopo UBSA was signed.”
The Prime Minister acknowledged the concerns raised by Hon. Keith Iduhu regarding representation for Plant Site Landowners and Central Province interests in the proposed Kroton Equity Option Special Purpose Vehicle (SPV). He assured Parliament that the NEC Decision was never intended to exclude Plant Site Communities. “Plant Site Landowners are important. They are my people as much as they are the Member for Hiri-Koiari’s people,” Prime Minister Marape said. “They are included in this Restructuring that is taking place. The five Provincial Governments all in all are included in this Structure.”
Prime Minister Marape explained that the 4.27 Percent Equity parcel was originally created as a goodwill arrangement for approximately 60,000 Project Landowners across the entire PNG LNG footprint, including Upstream Petroleum Development Licence (PDL) Areas, Pipeline Communities, and Plant Site Landowners in Central Province. “This 4.27
Percent is not Entitlement of Law, but a Government Policy — a National Alliance Government Policy — gifted to the five Provinces and 60,000 Landowners for their support to PNG LNG,” he said. The Prime Minister further clarified that the proposed Structure would ensure continued participation by all Beneficiary Groups, while preserving the Asset as a perpetual Wealth-Generating mechanism rather than allowing it to become a short-term “cash cow”. “It should have an element of Sovereign Wealth Fund attached to it. Majority of this Fund should be set for perpetual Regeneration for these Five Provinces and the 60,000 Landowners, including people at the Plant site.”
Prime Minister Marape also responded directly to concerns raised by Hon. Peter O’Neill regarding management of the Fund and public accountability. The Prime Minister confirmed that the Government would make public the Earnings and Benefits received through Kumul Petroleum Holdings Limited from the PNG LNG Project since First Gas in 2014. “I’m happy he has asked for a full Report on the K12 billion that has been passed on to Kumul Petroleum Holdings Ltd, and it will be my absolute honour and privilege to table to this House (Parliament), since 2014, what has happened to this Wealth belonging to our country,” Prime Minister Marape stated.
He reiterated that the Government had no intention of politically controlling the Structure and would continue consulting Landowners, Governors, and Local Leaders to refine the Arrangement where necessary. “If there are ways to improve this, I’m very certain we’ll consider recommendations from the Members of Parliament concerned,” he said. “The only thing we don’t change is the Ten Commandments. Cabinet Decisions can be changed. So long as something is good for our people, we will make sure we adapt.”
Prime Minister Marape said the Government remained committed to transparency, inclusiveness, and protecting the interests of all Beneficiary Communities connected to the PNG LNG Project. “We want a Structure that will perpetually Harvest Wealth and Sustain Wealth and Generate Wealth — not just for today’s generation but for the next generation that is coming,” he said.
The Prime Minister also acknowledged the patience and cooperation shown by Landowners across all Impacted Provinces and Communities over the years. “I thank them for their patience. It’s been a long time coming. But it’s better late than never,” Prime Minister Marape said.