By LIMS MIRUPASI
PIMAGA, Southern Highlands: Managing Director of Mineral Resources Development Company (MRDC) Mr Augustine Mano has outlined the benefit sharing arrangements of the Kutubu Petroleum Project, saying Kutubu landowners receive a lower share of benefits compared to other oil projects but have remained patient for more than three decades.
Mr Mano was speaking at the launch of the Parita to Moro road upgrade and sealing project at Pimaga Government Station on Wednesday.
The road project is a K371 million investment fully funded by the Government of Papua New Guinea, and is expected to be completed within three years. The construction contract has been awarded to China Railway Engineering Company.
Mr Mano thanked the Prime Minister, ministers, governors and local leaders for attending the event and commended Petroleum Minister Dr Billy Joseph for delivering the project.
“I will speak about MRDC and PRK and leave the road discussion to the Ministers and the Prime Minister,” Mr Mano said.
He said the Kutubu Petroleum Project had made a significant contribution to State revenue since production began in 1992.
“From 1992 to 2014, over 22 years, the Kutubu project reached a peak production of 150,000 barrels per day and paid 50 per cent tax to the Independent State of Papua New Guinea,” he said.
Mr Mano said Petroleum Resources Kutubu (PRK) had remained a major contributor within the PNG LNG framework over the past decade.
“Last year alone, PRK paid K80 million in tax to the Internal Revenue Commission, excluding benefits,” he said, adding that PRK had continuously paid tax to the State for more than 32 years.
Explaining the benefit-sharing structure, Mr Mano said PDL 2 landowners in PRK receive only 24 per cent of total project benefits, with the balance distributed among Hela, Southern Highlands and Gulf provinces, as well as Kikori landowners.
He said provincial governments and local-level governments receive 100 per cent of the development levy, while 70 per cent of Kutubu royalties are paid to provincial governments, leaving only 30 per cent for Kutubu landowners.
Mr Mano said that overall, when compared with other oil projects such as Moran and Gobe, Kutubu landowners receive lower equity and royalty shares, despite their long-standing contribution to the national economy.
“Despite receiving less, the Kutubu landowners have remained patient,” he said.
Mr Mano said PRK was unique among MRDC subsidiaries as it was the only project where benefits were shared across three provinces Southern Highlands, Hela and Gulf.
Mr Mano urged leaders and communities along the road corridors not to harass or marginalise Kutubu landowners, saying the people of Kutubu had given significantly to the province and the country over many years.
He said Kutubu landowners had consistently allowed resource development to continue peacefully, despite receiving a smaller share of benefits compared to other projects, and called for mutual respect and understanding among all beneficiary communities.
Mr Mano said development should unite communities rather than divide them, and that all those benefiting from the resource must acknowledge Kutubu’s contribution to provincial and national development.
He said PRK landowner directors had committed further support to upgrade the Pimaga Health Centre to a Level 4 rural hospital this year.
Mr Mano also highlighted PRK funded community investments, including a K14 million classroom project at Mt Bosavi and support for the construction of a Level 4 hospital at Ialibu.
Mr Mano thanked the Prime Minister for delivering the Parita to Moro road project, saying it demonstrated government recognition of Kutubu’s contribution to national development.
ENDS///