PNG LNG project landowner royalty monies paid

The funds trustee for petroleum resource landowners confirmed the delayed PNG liquefied natural gas royalty payments for landowners had been credited.

In a media statement released on Wednesday, the Mineral Resources Development Company [MRDC] made this confirmation.

MRDC under the Oil and Gas Act, manages all royalty payments for customary landowners in petroleum project areas in the country.

MRDC Managing Director Augustine Mano stated that 40 percent of the sum will be paid to landowner companies, while the remaining 60 percent will be equally split between the future investment fund and community infrastructure trust fund.

A royalty windfall of nearly K850 million was transferred from the Bank of PNG trust account to MRDC following approval by the Secretaries for Petroleum and his Finance counterpart this month, who both are designated trustees and signatories to those trust deeds.

The MRDC managing director confirmed that the accumulation of monies over the years was due to landowner clan disputes and civil court matters.

“The release of the royalty payments is great news for landowners. The early release of these benefits to a number of these groups have been delayed by clan disputes and court cases,” Mr. Mano said.

However, the statement released by MRDC shows some of the landowner payments will be delayed because of incomplete clan bank account opening, director elections and disputes.

“For Hides PDL 1 [Petroleum Development License) landowners, this is timely. MRDC will proceed to complete the clan bank account opening and director elections exercise so payment can be made before the end of the year,” MRDC Managing Director stated in the media release.

“This exercise commenced in April 2024 but was suspended due to a restraining order from the court obtained by a party. This case has now been resolved, and the restraining order lifted, clearing the way for us to resume.

“This also includes the pipeline, and the plant site landowners. Royalty and equity benefits for PDL 2 [Kutubu], and PDL 3 and 4 [Gobe] will be withheld pending the resolution of a number of disputes which are currently in place.

“The Account Opening and Directors Elections Process for the Angore [PDL 8] landowners will commence as soon as the PDL 1 exercise is completed, while a Ministerial Determination is pending for the landowners of Juha [PDL 8].”

But good news for landowners who have their house in order, “for Hides PDL 7 landowners, royalty benefits for 2014 – 2021, and equity benefits for 2014 –2017 have been paid. Their royalty [2022 – current] and equity [2018 – current] benefits will now be paid with the release of their royalty entitlement,” the statement reads.

Meanwhile, Finance Minister Thomas Opa confirmed with this newsroom, the payable sum to different segment landowners of the PNG LNG Project, are their rightful royalties and not public monies.

“These monies represent monies held in Bank of PNG Trust, and the majority of it to the different segments were held back due to numerous court challenges amongst landowners themselves, and do not originate from the 2025 National Budget or any government allocations.”