Landowner Leaders of Kutubu Petroleum Development Licensce (PDL) two (2) Oil & Gas Projects in Southern Highlands Province (SHP) have gathered for a Press Conference today, 10th February 2025, purposely to express their frustrations and deliver a Petition to the Marape-Rosso Government. They demand in their Petition to revoke an ill-conceived and misguided Ministerial Determination executed in 2022 by the former Minister for Petroleum in collaboration with Department of Petroleum and the National Government of Papua New Guinea (PNG).
Mr, John Kapi Natto, Chairman of Nama Aporo Association Inc., the political mouth piece for Fasu people and Mr. Johnny Yawari, Chairman for Foe Association Inc, the political mouth piece for Foe people, together with Incorporated Land Group representatives from Foe and Fasu, including South East Mananda and Moran Fasu assembled at Hilton Hotel in Port Moresby for the media conference.
Foe Association Inc. Chairman and Director for Petroleum Resource Kutubu (PRK) Mr Johnny Yawari made several profound statements, disputing the Landowner Benefit Identification (LOB-ID) exercise that the Department of Petroleum introduced in 2013 and the new Ministerial Determination on benefit sharing structure for Kutubu Landowners effected in 2022.
Mr. Yawari said that his Foe people are custodians to the land boundaries that hosts both the old Oil project and the new PNG LNG project in Kutubu PDL 2, SHP. The State must protect the Landowner entitlements and ensure their fair share of royalty and equity as per the initial Kutubu Oil Agreement with then Prime Minister Sir. Rabbie Namaliu in 1992 remains and unaltered.
He stated:
“Our country faced economic crisis in the late 1980’s as a direct result of Bougainville conflict relating to the Panguna Gold Mine. The Kutubu project commenced in the midst in 1992. The institution of the project actually introduced PNG to the world as Oil producing country. Also, before Gobe, Moran, Hides, Angore, Juha, pipeline segments and LNG plant site, Kutubu project saw the light of day.
The Kutubu people worked with the Government of Sir Rabbie Namaliu to commence the project at the time our country needed a mega project of that magnitude. The Landowners hardly disrupt the operations of the Kutubu project since inception in 1992 to date. The Kutubu people’s kind gesture underpinned the PNG economy at the height of Bougainville crisis and sustain the PNG economy until other projects come on board”.
He further stressed, “All the previous successive Governments under the Prime Ministership of Sir Rabbie Namaliu, Sir Julius Chan, Sir Michael Somare and other Prime Ministers have always respected the PDL 2 benefit sharing arrangement between the Kutubu people and the State.”
Mr. Yawari pointed out that the former Petroleum Minister Hon. Kerenga Kua, LLB, MP, an appointee of the current Marape-Rosso Government, effected the Ministerial Determination without proper consultation and involvement of Kutubu leaders. A few self-vested and greedy individuals colluded with DPE Officers to hijack the process in orchestrating the Ministerial Determination in question. Department of Petroleum failed its core responsibility as a regulator to safeguard and protect the long-standing landowner benefits by all means.
Citing the irregularities and discrepancies, Mr Yawari demanded the Prime Minister Rt. Hon. James Marape, MP and his Government to intervene immediately in revoking the misguided Ministerial Determination without delay and maintain the status quo.
“I want this imprecise Ministerial Determination done in 2022 be revoked forthwith, and we retain the status quo as before,” Mr Yawari continued.
Mr. Yawari strongly warned the National Government and the Oil & Gas industry regulator, Department of Petroleum, to respect the benefit sharing structure of 1992 that was reviewed in 1996 to remain unchanged, as Landowners themselves negotiated in properly constituted forum and signed the Agreement way before the enactment of Oil & Gas Act in 1998. Mr Yawari felt for his people and discourage the State to stoop low and meddle with meagre entitlements for common village people, who use the money to pay school fees and meet other family obligations. He pointed out that the Kutubu people were kind enough to give 70% of the benefits to Southern Highlands Provincial Government whilst they received only 30%.
“The State must start talking about increasing the Landowner benefits instead of splitting into fragments the small benefit they are currently enjoying,” he explained.
He said proper consultations should have been done with the landowner beneficiary groups before making misguided decisions that will affect monetary benefits of both the current and future generations.
“In my capacity as the Chairman of Foe Association and on behalf of my people, I give the Prime Minister and his Government 14-Days to revoke the Ministerial Determination forthwith and revert back to the initial status quo as per the Kutubu Oil Agreement in 1992 and 1996.”
Chairman Yawari concluded that if the State fails to comply with the 14-Days Ultimatum given by people of Kutubu, the Kutubu people stand united to shut down the Kutubu PDL 2 project.
