The Papua LNG Project Development Forum has commenced Tier One (1) Provincial Benefits Sharing Negotiations as the government aims for the tier-1 agreement signing on Wednesday, September 30, 2026.
Minister for Petroleum, Hon. Jimmy Maladina said Tier One (1) Benefits Sharing Negotiations between the Gulf and Central Provincial Governments commenced on Thursday, September 24, 2026, at Apec Haus in Port Moresby and will continue on Friday, September 25, 2026.
MINISTER for Petroleum Hon. Jimmy Maladina. Pciture supplied.
He said both impacted governments are to negotiate and, where possible, conclude the Tier 1 Provincial Benefits Split in respect of Royalty, Equity and Development Levy, in accordance with the applicable negotiation framework and operational rule no. 1.
Minister Maladina said that “No subsequent-tier allocation shall be negotiated until Tier 1 has been formally resolved.”
“The Tier 1 meetings are to negotiate and conclude the Tier 1 Provincial Benefits Split between Gulf Province and Central Province. In accordance with Operational Rule No. 1, no Tier 2, Tier 3, Tier 4 or Tier 5 allocation shall be negotiated until the Chairman and Deputy Chairman of Facilitators formally declare that Tier 1 agreement has been reached.”
“The outcome sought is the formal adoption of the Tier 1 Provincial Benefits Split, to be recorded in the Decision Register and to become the common allocation framework for Royalty, Equity and Development Levy across all subsequent tiers,”‘ the Petroleum Minister said.
“As Minister and convenor, I am happy to inform all stakeholders that the Forum Facilitators, the National Petroleum Authority (NPA) Forum Team and State Team including Legal Representatives have confirmed receipt of over 35 position papers including the position of both provincial governments as of Thursday, September 24, 2026,” Minister Maladina said while providing an update on the development forum which has been currently underway in Port Moresby for the past three months.
Minister Maladina said a workshop for the NPA team, Technical Team, Forum Facilitators and the State Team was held on Wednesday, September 23, 2026, at Granville Hotel to ensure that all issues derived from the Position Papers were thoroughly considered by all State departments and agencies (State Team).
He said the workshop was also for final preparations, review and planning before commencing and closing Tier 1 benefit sharing negotiations.
A final meeting for presentation of position papers was also organised by NPA and facilitators on the same day at the Rita Flynn Netball Centre for the Gulf Provincial Government/Administration and their landowner representatives to align and form their final negotiating team for the commencement of the tier-1 negotiations State team includes representatives from the State Solicitors Office, the Department of Prime Minister & National Executive Council, Treasury, National Planning, Finance, Kumul Petroleum Holdings Limited (KPHL), Mineral Resource Development Company (MRDC), and the National Energy Authority (NEA)
Minister Maladina acknowledges both the Gulf and Central Provincial Governments and the landowners for the continued cooperation despite welfare challenges as the government progresses for a final investment decision on December 15, 2026,
