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Article

30 Jan 2019

Author:
Jonathan Barrett & Tom Westbrook, Reuters

Papua New Guinea: Violence arises over lack of benefits from Exxon's LNG project

"In Papua New Guinea, Exxon's giant LNG project fuels frustration" 17 January 2019

...Exxon-led PNG LNG project....royalties to landowners and development levies to communities, have arrived well below Exxon's own commissioned forecasts...

...[I]n a statement...Exxon said distribution of royalties and benefits to the LNG plant site landowners started in 2017. Cash payments to individual landowners would depend on how many landowners were in a precinct and were just one of the benefits communities received, Exxon said.

...ExxonMobil PNG Managing Director Andrew Barry...said Exxon was hoping royalties would begin flowing in the pipeline and upstream areas "in the not too distant future".

...A 2017 World Bank analysis found the project partners had negotiated favorable methods of calculating royalties to the government that allowed them to take various deductions.

...Exxon did not respond to questions regarding the World Bank findings....

...Exxon said in a statement to Reuters the project has generated 5 billion kina in revenue for the government and landowners via taxes, royalty and benefit payments....

...In its statement, Exxon acknowledged that "distribution of royalties and benefits in some project areas were delayed since the start of production due to court action by a small number of landowners which prevented the relevant government departments from completing their administrative processes."

Exxon said it was committed to assisting the government ensure landowners receive royalty and equity dividends as soon as practicable.

Disputes have broken out within communities near PNG LNG facilities as landowners fight to have their claims recognized.

...[C]lan leader Johnson Tape, one of 16 clan leaders..."Our clans fought each other, but now there is peace; we are one team fighting Exxon," said....

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