THE seven (7) tribes of East Kikori in Gulf Province have welcomed the Gulf Provincial Government’s (GPG) benefit sharing formula for the Papua Liquefied Natural Gas (LNG).
Speaking on behalf of the 7 tribes, host and paramount chief of the Lower Gope tribe Mr. Peter Morgan said GPG’s LNG Benefit Sharing formula is an antidote to sustainable project security and harmonious co-existence between project affected landowners and surrounding communities, therefore this drive pursued by the GPG needs commendation.
Morgan was speaking during a meeting conducted at Karati village last week where the GPG’s Oil and Gas Task Force started its ongoing Papua LNG predevelopment forum awareness.
The arrival of the task force to the long anticipated gathering was met with much fanfare and a rousing welcome by the 7 tribes following East Kikori’s inclusion in benefit sharing of the US$10 billion gas and condensate project.
“We the 7 tribes warmly welcome all members of the Task Force as we are eager to know where we stand in this multimillion dollar project,” Mr. Morgan said.
“Our enthusiasm stems from the fact that we have long been mere spectators of the PNG LNG project.
“We now know that this time around it is different and therefore we fully applaud the Gulf Provincial Government’s LNG drive.”
Acting Governor and host Local Level Government President, Mr. Morris Taudevin said the GPG’s unprecedented drive themed “leave no one behind” holds true to its word.
He said it does not only compliments but enforces two key pillars in the drive that among others includes, learning from past mistakes especially the PNG LNG and an inclusive approach with those considered unaffected by the project as per the Oil and Gas Act.
“We are now well aware of the new benefit sharing regime being pursued by the Provincial Government,” Taudevin added.
The homegrown formula takes into account many oversights seen in past oil and gas projects that Gulf Province has either hosted or taken carriage of through pipelines.
“It takes into account our cultures and traditional relationships.
“It holds steadfast to a reciprocation approach, no mistakes of the past and maximum benefits to the people.
“In so doing, we agree and fully endorse the wisdom of benefit sharing with LLGs adjoined to the affected landowner groups and localities.
“We have our share of LNG projects such as Kimu, Triceratops and Uramu and we can reciprocate the gesture shown now by affected groups and especially the Gulf Provincial Government.”
The East Kikori LLG will be entitled to the same benefits as their counterparts, the Baimuru LLG, Ihu LLG and East Kerema’s Moripi LLG.
East Kikori has been awarded 15% from the Gulf Provincial Government’s share of benefits just as West Ihu and Moripi.
They will include well head landowners, central processing facility landowners, pipeline corridor landowners and buffer zone landowners.
Benefits to accrue to the recipients will be both direct and indirect.
Direct benefits will include royalty, equity, development levy and production levy which are primarily captured in the Oil and Gas Act 1998.
Direct benefits may be in the form of monetary value, physical infrastructure or Services.
Indirect benefits will include, training, employment and business spin offs which will be accommodated for either in the Local (Provincial) Content Plan or the National Content Plan which are standard requirements in the Gas Agreement for the Developer to provide.
East Kikori mountain tribe, the Foroba which includes Satau, Tobare, and Negibare villages speak the same language and are related to the Pawaia people, landowners of the Elk and Antelope fields.
Just below them, the Era tribe which includes Eramaipua, Eragoilavi and Naharo share the Mena River which runs less than 10 kilometers from East Kikori into the Elk and Antelope fields.
Chairman of the Gulf Oil and Gas Task Force and former secretary of the Department of Petroleum and Energy, Rendal Rimua said the welcome was overwhelming and was indication of the general feeling of the seven tribes of the East Kikori people.
“It is heartwarming to see that the seven tribes; Urama, Anigibi, Rumu, Foroba, Era, Ero and Gope starting from the foothills of East Kikori down to the seashore have welcomed us with open arms.
“This in my view reflects the fact that they appreciate what the GPG is doing for its people in this period of petroleum resource development.”
Rimua remarked adding, “The benefit sharing formula devised by the provincial government is unprecedented, innovative, exemplary, robust and contains a lot of wisdom”.
Tribal paramount chiefs, clan chiefs and 15 ward councilors and clan representatives all made representation in Karati.
Meanwhile, a Memorandum of Understanding (MoU) formalizing a working arrangement will be signed between the parties anytime soon.
