PNG landowners upset at treatment over $11 billion LNG project
Updated
Some serious horse trading is about to get underway in Papua New Guinea to divide up the riches that are expected to flow from the country's biggest resource project, with the Government and landowners deciding how to share the royalties generated by an $11 billion dollar liquefied natural gas project. But questions are already being raised about the legitimacy of any agreement, with some affected landowners saying they've been left out.
Presenter Liam Fox
Speakers: Landowners Representative Simon Ekanda, Esso Highlands Peter Graham
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LIAM FOX: The economic importance of the project to pipe liquefied natural gas from several fields in PNG's highlands cannot be overstated. Residential development is booming in the capital Port Moresby just on the expectation the project will generate hundreds of new jobs. This week, representatives of the government and 60-thousand affected landowners will start talks on a benefit sharing agreement or BSA to divide up the expected royalties. But some landowners say they weren't invited.
EKANDA: My people want to be the...a partner in the project, not a spectator.
LIAM FOX: Simon Ekanda represents 30,000 landowners in Hides where one of the biggest gas fields is located. He says he's been sidelined for requesting 30% equity in the project.
EKANDA: It's not really greedy and they think that we are not capable, they think that we cannot be party to this project. They are ignorant to our request. I mean, I don't know why. Their reasons is, if you want to get something belongs to me, and you say no, no, you can stand there and wait.
LIAM FOX: While people have been gathering on the island of New Britain for negotiations, Mr Ekanda and other disgruntled landowners have been protesting outside the Department of Petroleum and Energy in Port Moresby.
EKANDA: You saying that this is not my right to ask for equity? Am I not to be a party in this project? It's a multibillion kina project. So you are really putting me out of the gas agreement, and now you want me chew, ask me to eat what you have already chewed. No, cannot.
LIAM FOX: Mr Ekanda says any agreement reached on New Britain without his signature will not be legitimate. The National Government isn't talking to the media ahead of the negotiations. But only a fortnight ago in a full-page newspaper advertisement, it said it was still working to identify legitimate landowners and conduct social mapping. The developers are confident an agreement will be reached. Peter Graham from Esso Highlands say it's essential for the LNG project to proceed.
GRAHAM: Lenders will always look to make sure that there is strong Government and community support before they start putting their money at risk in large-scale investments, so it is important from lenders perspective, I'm sure.
LIAM FOX: Mr Graham says any problems with BSA could cause delays with the project.
GRAHAM: Before we start any construction activity, we need to have this umbrella agreement in place. Early works, activities, are scheduled to start in the, kind of, July-August time frame of this year. So it's important we get through that process before that point in time, otherwise it does have the potential to cause delay.
LIAM FOX: Negotiations are expected to take a fortnight and it remains to be seen whether the Government has done the necessary groundwork to conclude an agreement. There's a lot riding on it. It's been said the morale of the whole country will collapse if the LNG project falls over.
