The landowners and other beneficiaries of the PNG LNG project will soon receive their royalty payments now that the Central bank has released accrued royalty payments for the Project area landowners into their Trusts, which it manages.

Mineral Resources Development Company (MRDC) has confirmed this, stating that it is great news for the landowners.

MRDC Managing Director and Chief Executive Officer (CEO) Mr. Augustine Mano welcomed the release of the royalty benefits.

“The release of the royalty payments is great news for landowners. The early release of

these benefits to a number of these groups have been delayed by clan disputes and court

cases,” said Mr. Mano.

“For Hides PDL1 landowners, this is timely. MRDC will proceed to complete the clan bank

account opening and director elections exercise so payment can be made before the end

of the year.”

“This exercise commenced in April 2024 but was suspended due to a restraining order from

the court obtained by a party. This case has now been resolved, and the restraining order

lifted, clearing the way for us to resume.”

MRDC is mandated under the Oil & Gas Act to manage benefits for project area landowners

in petroleum projects in the country.

Under the benefits sharing arrangements reached at the UBBSA in Kokopo, prior to

commencement of the PNG LNG Project, the royalty benefits are paid to the Government

(into a trust account held at BPNG), which then releases it to its main beneficiaries: the

landowners (70%), and the Hela, Southern Highlands, Gulf, Western and Central provincial

governments and impacted local Level Governments (30%).

In accordance with the Oil & Gas Act, and benefits - sharing agreement reached in 2009,

royalty and equity benefits for landowners are to be split in the 40:30:30 formula, where

40% is paid as cash benefit to benefitting clans, 30% invested in Future Generation Fund

(Investment), and 30% in Community Infrastructure Trust Fund (social development

projects).