MRDC and Gas Resources Hides 4 has begun paying the 277 beneficiary landowner clans of Hides Petroleum Development License (PDL) 7 their first equity and royalty payments. A total of K19.6 million was paid into the beneficiary clan bank accounts yesterday
MRDC and Gas Resources Hides 4 has begun paying the 277 beneficiary landowner clans of Hides Petroleum Development License (PDL) 7 their first equity and royalty payments.
A total of K19.6 million was paid into the beneficiary clan bank accounts yesterday.
Hides PDL7 is a key license area for the PNG LNG Project in Hela province and comprises of 277 beneficiaries’ clans. These clans are grouped into six blocks and comes under five regions of Parepare Ketereanda, Tawanda Tokaju, Timalia Kangulu, Middle and Tuguba.
The payments followed the royalty and dividend payment announcement on Thursday by MRDC and Gas Resources Hides 4 (GR Hides4) at Para Community School in Hides, Komo-Magarima District, Hela Province.
The combined royalty and dividend payment is a significant milestone for the green fields as this is the first time beneficiaries from an upstream PDL area are receiving their cash benefits from the PNGLNG Project.
Speaking during the announcement, MRDC Managing Director and CEO Mr Augustine Mano said, “this is the first time, the upstream beneficiaries are receiving their royalty and equity benefits from the PNGLNG Project.”
“It’s a special milestone achievement for PDL7 and I commend the leaders in the six blocks for their leadership at the community level and also all the different stakeholders that worked together with MRDC and the six block leaders in ensuring this day comes to fruition.”
The PDL7 landowners are the first PNG LNG Project greenfield license area beneficiaries to receive their royalty and equity benefits, following payments already done to PNG LNG Plant Site and Pipeline landowners.
Mr Mano said he believed this would pave the way for speedy conclusion to the LOBID process for Hides PDL1, PDL8 in Angore, and PDL9 in Juha so that benefits for landowners there can also be rolled out.
Mr Mano praised the PDL7 landowners for their patience despite the long wait for the benefits after the first shipment of LNG in 2014. A protest by landowners there in 2016 almost led to disruption to production at the project, which would have had severe consequences for the PNG economy.
Disaster was averted through the signing of an MoU between the landowners and various agencies of State for certain commitments to be delivered, among them the transfer of the Koton Equity, the upgrade and sealing of the KomoTari highway, and the speedy delivery of landowner royalty and equity benefits.
Mr Mano said he was pleased that a key item in the MoU was realized through the delivery of the royalty and equity benefits to PDL7 landowners.
“The dividend payment is for the period of 2014 – 2016 after the audit of the accounts, while the royalty payment is for 2014 – September 2021.
A combined royalty and equity of K49.2 million was received by MRDC, of which 40% cash component of K19.6 million is being paid into the clan accounts while 60% or K29.5 million is being retained for Future Generation Trust and Community Infrastructure Trust Fund.
Further equity payment will be released after audited financial statements are done, and it is hoped that will happen this year. Mr Mano urged those clans and families receiving the cash benefits to use the money wisely.
He urged them to invest in small businesses to grow the money, or save for your children’s education in future. Of the 60% that is retained for CITF and Future Generation, he hoped the board of GR Hides 4 can work closely with MRDC to deliver quality community infrastructure project to enhance quality of life in the area, and invest wisely for the future.
He said putting revenue from non-renewable resource like gas into Long term Investments is important as these investments will provide the income to sustain your livelihood once the PNG LNG Project comes to an end.
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