A total of K189 million will be paid to landowner groups impacted by the Papua New Guinea Liquefied Natural Gas Project (PNGLNG) as dividend of their commercial share in the Kroton equity.
This figure represents added dividends from 2017 to 2021 which was approved by Kumul Petroleum Holdings Limited Board to be paid in December last year.
Kumul Petroleum Holdings, the custodian and administrator of the landowner shareholder companies in the PNGLNG says there is no issues relating to the disbursement of these monies accept few criteria.
A paid advertisement by KPHL requires landowner beneficiary groups to have had ministerial determination following a Landowner Beneficiary Identification (LOBID) exercise, project area landowner leaders to have the election of their leaders administered and sanctioned by the PNG Electoral Commission and a company registered under PNG law for the payments to be made.
This will happen when servicing of the vendor finance arrangement continues. Towards the end of 2016 the “vendor finance” was the options used by the landowners to buy their shares in the state Kroton package as agreed in the UBBSA agreement
“In December 2021, dividends accrued from 2017 to that date were agreed to be paid out by Kumul Petroleum. Of the total of K251 million declared, K189 million was to be paid to recognised landowner groups and K62 million to the five project-impacted provincial governments – Hela, Southern Highlands, Western, Gulf and Central” KPHL said in a statement
Payments to the named provincial governments were made in late 2021
“The most important of the commercial options (as opposed to mandatory benefits) in the UBSA was that State recognised landowners and provincial governments impacted by the project could acquire an equity stake in the project, through acquisition of a share in the Government company taking up shareholding in the project, at a fixed price and in agreed percentages.
Payment is of the dividends that have accrued from shareholding, in the same manner as any other company shareholding. There are no issues in relation to this matter, the details of which are detailed in documentation signed by all parties in 2016,”.
