PAPUA New Guinea’s Prime Minister, James Marape, has sought to calm concerns over the PNG LNG project, saying the government will not dilute landowners’ and provincial governments’ equity stakes.
Marape told parliament during question time that consultations were still under way with governors and provincial leaders from the affected provinces, and that no final arrangement had been imposed.
“The work is still in progress, and I want to give full assurance to Central Province landowners, especially the affected landowners, as well as landowners and beneficiaries in all the other participating Provinces, that this will not be done in isolation,” Marape said.
He said provincial governors had already been consulted and urged provincial executive councils and assemblies to decide whether their interests should be pooled into a unified structure or managed separately.
“I put it expressly to the Governors that their Provincial Executive Councils and Provincial Assemblies must decide what is best for their respective Provinces and communicate their preferred option to the National Government,” he said.
The comments came in response to questions from Hiri-Koiari lawmaker Keith Iduhu over outstanding landowner benefits tied to the PNG LNG project, including concerns from Central Province communities whose land and infrastructure corridors are linked to the gas venture.
Marape said the 4.27% equity interest held by beneficiary provinces and landowners would remain intact under any future structure.
“There will be no dilution whatsoever of the total stake allocated to the beneficiaries. The total stake was agreed under the Kokopo Umbrella Benefits Sharing Agreement, and it will not be diluted or transferred to other beneficiary groups,” he said.
He said the government was weighing a structure that could preserve each province’s entitlement while allowing representation at board level and professional management of the asset.
Marape pointed to the Mineral Resources Development Company as an example of how resource benefits could be consolidated and invested to generate long-term returns.
“The purpose is not to remove anyone’s entitlement. The purpose is to protect the asset, grow it and ensure that the benefits continue flowing to landowners, provinces, children and future generations,” he said.
He urged Central Province leaders to complete their consultations and submit their preferred position to the national government.
“If Central Province wants to manage its interest independently, that option remains available. There is no problem with that,” Marape said.
“But the decision must be made carefully, collectively and in the long-term interests of the Landowners and the entire Province.”
The government has not yet announced the final structure for managing the PNG LNG equity interests.
