PNG LNG delivers gas with Social Mapping undone

The PNG Government says it's confident its method of identifying landowners who will benefit from the nation's billion-dollar liquid natural gas project is fair and valid.

The government has been criticised for using a process called 'clan-vetting' to decide who can claim royalties from the $19 billion project.

It has acknowledged that the landowner identification process won't be finished before ExxonMobil makes its first shipment of gas to Asia in the middle of the year.

PNG's Petroleum and Energy Minister, Nixon Duban, says clan-vetting is thorough and almost complete in nine of the 16 major areas.

"While many people may raise the level of criticism against the government's effort I want to assure all our public and general listeners (about) this system of social mapping and clan-vetting," he said.

"I think we are a capable government and we will have it completed without any bias to our current delays in terms of release of funding and the commitment by our officers, are minor obstacles in my view and it will be done."

The ExxonMobil PNG LNG project - which stretches from the PNG highlands, along a 600-kilometre pipeline to the plant site near Port Moresby - is ahead of schedule.

Tens of thousands of people who live within the project area are waiting for the money to flow but that can't happen until all landowners are identified.

Traditional owners in all those areas are expecting to receive financial benefits, but the task of identifying who is or isn't a real landowner is fraught with difficulty.

More than five years' work has gone into the process, but it is still contested.

Stanley Mamu, administrator of the NGO, PNG LNG Watch, says there are problems with clan-vetting.

"Anybody from Papua New Guinea can claim their clan as part of project areas, (that) they come from the project areas," he said.

"The problem that will cause for the future is that is not a proper identifying of that clan so anybody working with the Department of Petroleum and Energy can put his clan into that clan-vetting and claim that he is the landowner and he will get benefits from that project."

Lawyer Alfred Kaiabe, an oil and gas expert from Hela province, in the PNG highlands, says the clan-vetting system has no legal basis.

"During the last two weeks there have been commotion down at the Petroleum and Energy Department because some of the landowners want to know the outcome of the clan-vetting the government has been conducting."

Royalty money held in trust

The final, official list landowners who will benefit from the project will be contained in a ministerial determination.

Mr Duban says it is important the information that goes into the ministerial determination is correct.

"We must ensure and there must be internal reviews from time to time to ensure that this clan-vetting is true and true and correct in all forms," he said.

Mr Duban said he expected the clan-vetting to be 90 per cent finished before the end of the year.

Prime Minister Peter O'Neill is expected to reveal details of how that process will work when he tours project sites in the coming weeks.

Hey, that would be a good spin for the politicians Art. 'Although Social Mapping is a requirement for FID, we screwed up Social Mapping for your own good. Your royalty checks are in the mail'.

That will calm the isolated tribes that have been PO'd and have lived through disruption and death and have pointed trigger fingers directly at XOM. Maybe the expansion train Social Mapping for P'Nyang is complete??

And then on top of this social mapping gaffe O'Neill plays the "prior administration" card for the loss of government ownership in PNG LNG.

Prime Minister, Peter O’Neill informed parliament today that past national deals have been the cause of the state’s 3 per cent shareholding in the LNG project.

Mr. O’Neill blamed past governments, for failing to capture the full benefits of shares, by law. As a result, the country now owns 19 percent shareholding in the LNG project, and not 22.5 percent, which it is entitled to, under law.

The Prime Minister was responding to a question raised by member for Kerowaghi, Camillus Dangama. By law, the state is entitled to 30 per cent shareholding for mining projects, and 22.5 per cent for petroleum projects. But this is not the case with the LNG project.

Member for Kerowaghi, Camillus Dangama, questioned where the 3 per cent shareholding in the LNG was, and if anyone was benefiting from it.

In his response, Prime Minister, Peter O’Neill told parliament that the dilution of 3 per cent shares is a cause of past mining and petroleum agreements. He said this is a significant topic that was also raised in the last parliament.

Peter O’Neill agreed that the country has to move away from missed opportunities, and protect all resources by fully taking part in mining and petroleum activities.

He made reference to the government taking over 100 per cent shares in the Ok Tedi mine, and informed parliament that he will issue a directive to Petroleum and Energy Minister, Nixon Duban, to prepare a statement on the dilution of 3 per cent shares in the LNG project.

Ya think 'repairations' for the 3% equity deficit may be considered in PNG LNG expansion trains? O'Neill will be hero status if that is arranged.

It must be easier to design/deliver a $19 Billion project in hell than it is to determine who resides there.

PNG landowners won't be listed before gas flows

Royalty money held in trust