Prime Minister Hon. James Marape has assured Landowners and Provincial Governments connected to the PNG LNG Project that their agreed Equity Interests will not be diluted as the Government works to finalise an appropriate structure for managing the benefits.

Prime Minister Marape gave the assurance during Question Time in Parliament today, following Questions from Hiri- Koiari MP Hon. Keith Iduhu regarding outstanding Landowner Benefits associated with the PNG LNG Project. The Questions followed concerns previously raised by Hon. Iduhu during an earlier Sitting of Parliament, particularly regarding the interests of landowners and communities in Central Province whose traditional land and surrounding areas are connected to PNG LNG operations and infrastructure. Prime Minister Marape thanked the Member for continuing to pursue the matter on behalf of his people and said the transfer and restructuring process had not yet been completed. “The work is still in progress, and I want to give full assurance to Central Province landowners, especially the affected landowners, as well as landowners and beneficiaries in all the other participating Provinces, that this will not be done in isolation,” Prime Minister Marape said. He said the Government had already begun consultations with the Governors of the affected Provinces, recognising their Constitutional and Legislative responsibilities within the Provincial Government system. “The Provincial Governors have been consulted. We have had our first meeting, and Central Province was represented by the Governor of Central Province,” Prime Minister Marape said. “I put it expressly to the Governors that their Provincial Executive Councils and Provincial Assemblies must decide what is best for their respective Provinces and communicate their preferred option to the National Government.”

Prime Minister Marape said the Central Provincial Government, through its Provincial Executive Council and Provincial Assembly, had an important role in determining how Central Province’s equity interest should be structured and managed. He encouraged Hon. Iduhu, as a Member of the Central Provincial Assembly, to work closely with the Central Governor, the Provincial Executive Council and other leaders to reach a clear position on behalf of the Province. “Whether you want your interest to form part of a unified structure or whether you want it to be held and managed independently is a decision that can be made by the Province,” Prime Minister Marape said. “There will be no dilution whatsoever of the total stake allocated to the beneficiaries. The total stake was agreed under the Kokopo Umbrella Benefits Sharing Agreement, and it will not be diluted or transferred to other beneficiary groups.” The Prime Minister said the Government was proposing a Structure that could protect the Asset and generate Sustainable Wealth for Landowners and Provincial Governments over many generations. He said participating Provinces would have proper representation in any unified Structure, including representation at Board level, while preserving each Province’s existing entitlement. Prime Minister Marape stressed that the 4.27 per cent equity interest in the operational and de-risked PNG LNG Project represented a highly valuable National Asset for the beneficiary Provinces and Landowners. “To the people of the five beneficiary Provinces, the 4.27 per cent ownership in a de-risked PNG LNG Project is a premium asset,” he said. “You can choose to distribute the proceeds each year, or you can place the interest in a properly managed Structure that continues earning and creating wealth perpetually for the people.”

Prime Minister Marape referred to the experience of the Mineral Resources Development Company (MRDC) as an example of how Landowner Assets could grow when benefits were consolidated, professionally invested and managed over the long term. He told Parliament that MRDC had demonstrated how Resource Benefits could be transformed into major Investments and Sustainable Wealth instead of being divided into small amounts that produced limited long-term value. “For perpetual sustainability, there is clear evidence of success when benefits are properly consolidated and invested instead of being spread too thinly,” he said. “The purpose is not to remove anyone’s entitlement. The purpose is to protect the asset, grow it and ensure that the benefits continue flowing to landowners, provinces, children and future generations.” Prime Minister Marape said the Government had now placed the responsibility before the respective Provincial Governments to consider the available options and advise the National Government of their preferred arrangements.

He urged Central Province leaders to complete their consultations and submit their position at the earliest opportunity so that the process could move forward. “If Central Province wants to manage its interest independently, that option remains available. There is no problem with that,” Prime Minister Marape said. “But the decision must be made carefully, collectively and in the long-term interests of the Landowners and the entire Province.” The Prime Minister reaffirmed that his Government remained committed to honouring legally agreed benefits, strengthening landowner participation in major resource projects and ensuring that resource wealth was managed responsibly for present and future generations. Prime Minister Marape’s response confirmed that consultations with Provincial leaders are continuing and that no final Structure will be imposed without the involvement of the affected Provinces and recognised Beneficiary Groups.