Stanley Gas Landowners Counter Proposal

Negotiations leading to the Development Agreement between the State and Landowners of the Stanley Gas Condensate Project are expected to be completed by the weekend.

Since the State, through the Department of Petroleum and Energy, presented the Director of Oil and Gas Proposal to the landowners, they have come up with counter proposals.


However, the State Team has made it clear that all proposals were guided by the Oil and Gas Act, and the only way to amend these changes would be in parliament.


The people of Western Province and more so, the landowners of the resource rich Stanley Gas Condensate Project in the North Fly District, want to optimise and benefit as much from the project as possible. They say they don’t want another Ok Tedi experience, where most of the money was parked outside of the district, and it was difficult for landowners to use the funds. 


These issues were highlighted by the different clan groups for the PDL, Pipeline, Buffer Zone, Storage Facility and Dockyard. They have engaged Lawyer Tiffany Twivey of Twivey Lawyers, and other consultants for legal advice.


One landowner spokesman proposed that as the 2 percent Royalty as stated in the Oil and Gas Act was too small, they proposed a larger share in the equity. The State has guaranteed a 15 percent Gas Retention, under its Domestic Market Obligation, and landowners expressed interest on how they intend to participate.


They also proposed that when a subdiary is established, as stipulated under the Oil and Gas Act, it must be based in Kiunga.


Secretary for the Department of Petroleum and Energy, Rendle Rimua, in his presentation, told the landowners that what the State had proposed was all guided under the Oil and Gas Act, and the only avenue to make these changes was parliament.


The department has also made it clear that in the event that no party agree that the Minister for Petroleum and Energy will proceed and issue the developer Horizon Oil Limited, the Petroleum development license.


However, its anticipated a ministerial team will travel to Kiunga, to sign the Development Agreement between all parties on Sunday.

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