Header Ads

K3MILLION DPE CVP FUNDS TO KPHL

PNG be informed that the Department of Petroleum & Energy was appropriated from the 100 days supplementary budget through the NEC of K3m to implement the S.47 of the Oil and Gas Act 1998 to compliment S. 167 & 168 benefits to be disbursed across the Png Lng affected Landowners, Provincial Governments and the LLG's.
There are also other associated benefits available in the various agreements (Gas Agreement, UBSA & LBSA). Sadly, the K3m will be transferred to KPHL to run the CVP/LOBID at the interest of DPE acting secretary & may be the responsible Ministers'.
This is a gross abuse of the Public Finance Management Act. KPHL is an entity created to manage the commercial Kroton Equity for PG's & Landowners investment per the UBSA Clause 6 in Kokopo.
Therefore if KPHL is willing to manage this funds, they must call for an immediate NEC review through submissions to transfer the K3m LOBID fund so they can manage this funds. This might be the right way for KPHL to be mandated authority in executing the fund usage.
These funds are earmarked for the integrated Png Lng project License area. If the intention is to offset the bills incurred during the State's commitment of K35m in 2016 in Hides areas then the DPE a/secretary and Minister's must reconsider.
Central Province has received their Royalty benefit after the then DPE Minister Nixon Duban gazetted the G:692 of 2015 under S. 169 of the Oil & Gas Act 1998. The question aftermath of this situation is that only 52% of the 28% from the downstream portion has been received. What will happen to the other 15 license areas in the Png Lng project?
The simple answer is to wait for another funding appropriation through the NEC.What a waste of time for the affected 60 000 plus Landowners in this project. They participated & the State received through Exxon Mobil and yet their benefits will prolong.
Please KPHL is PG and Landowner commercial investment entity and not to be a regulator. Stop duplicating the regulator's functions and let DPE execute according to the Oil and Gas Act 1998.
For this unwise decision by DPE and KPHL management, we landowners will wait for some more years again and we regret more disruption is expected and a reminder to you that project security is paramount as we are talking and we are on the move of this option.
Please, lets help our landowners through DPE and not other third-party entities which are questionable and will be a conflict of interest in terms of favouritism, nepotism in LOBID fund management.