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Oil Search in post PNG LNG landowner showdown

IN THE wake of the recent gas agreement with the national government for PNG LNG, 34.1% stakeholder Oil Search is facing shutdown action from landowners at its Hides gas field in Southern Highlands province.

Oil Search in post PNG LNG landowner showdown

Any disruption to Oil Search's plant at its Hides gas field threatens the supply of electricity to Barrick Gold's Porgera mine in nearby Enga province.

Reported by the National newspaper, more than 40 landowners in a Sunday media briefing in Mount Hagen demanded senior government ministers meet with them at Hides by today or face the closure of the Hides gas plant and related petroleum development licence 1 project.

Landowners are seeking 10% equity in PNG LNG under a commercial term as provided in the Oil and Gas Act 1998.

Other demands include the release of Memorandum of Understanding project funds to the "legitimate" landowners at the project site, the PNG Government to honour the K5 million Hides Business Development grant and the overdue election of the Hiwa Tuguba Hides Association.

The group of landowners comprise of 14 clan chiefs led by general secretary Philip Undialu, who said they would mobilise all villagers to shut down the access road to the Hides plant site.

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