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Topic:. “Promises And Undertaking”: Challenges Of Benefit Sharing In The PNG Kutubu Oil And Gas Development Licence Area. Map of PNG’s Petroleum Projects. Overview. Background: Resources of PNG Current arrangements for benefit sharing Case Studies: Kutubu Oil Project Landowners

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  1. Topic: “Promises And Undertaking”: Challenges Of Benefit Sharing In The PNG Kutubu Oil And Gas Development Licence Area Map of PNG’s Petroleum Projects Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  2. Overview Background: Resources of PNG Current arrangements for benefit sharing Case Studies: Kutubu Oil Project Landowners Oil Search Limited Papua New Guinea Sustainable Development Program Challenges for communities Governance and Institutional Frameworks Recommendations Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  3. Background Map of Papua New Guinea Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  4. Figure 3 – Map of PNG’s Petroleum Projects Resources of Papua New Guinea Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  5. Figure 4 – Map of PNG Mining Projects Resources of Papua New Guinea(continued…) Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  6. Current Arrangement for Benefit Sharing Chart 1: Legal Framework: Customary Law Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  7. Current Arrangement for Benefit Sharing (Cont.…) Chart 2 – Legal Framework: Western (Introduced) Law – Oil and Gas Act 1998 Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  8. (1) Kutubu Oil Project: Case Studies Three principles used to share benefits: Land area covered by Petroleum Development Licence (PDL) and Pipeline Licence(PL); Equal proportion of benefit flows amongst clan members; Size of population Landowners: Fasu, Lower and Upper Foi Fasu own 90% of land Foi own 10% of land Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  9. (1). Kutubu Landowners (cont.…) Case studies Current Equity Benefit Distributions: Fasu landowners (10%); Lower and Upper Foi Landowners (3%); Southern Highlands (Hela) Provincial Government and Local-level Governments (12%); Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  10. (1) Kutubu Oil Project (cont….) Case Studies (Cont….) Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  11. (1). Kutubu Oil Project (Cont.…) Case Studies: Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  12. (2). Oil Search Limited Case Studies (Cont….) Community Engagement Investing in successful relationships; Building Deep Cultural Understanding; Open And Collaborative Development Efforts; Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  13. (2). Oil Search Limited(cont.….) Case Studies (Cont….) Cultural expectations; Face of Oil Search Limited; Human Rights Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  14. Case Studies (Cont….) (2). Oil Search Limited (cont.….) Community Engagement: Village Liaison Officer (VLOs) Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  15. (2). Oil Search Limited (Cont…) Stakeholder management Case Studies: (Cont.….) Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  16. (2). Oil Search Limited (cont.….) Health and Community Case Studies: (Cont.….) Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  17. (3). Papua New Guinea Sustainable Development Program: Case Studies: (Cont.….) Trust Fund: Funding Social And Economic Development Projects Particularly Along The Fly River Area And Other Parts Of PNG Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  18. (3). Papua New Guinea Sustainable Development Program (Cont….) Case Studies: (Cont.….) Mainohana School Clinic Kairuku, Central Province. Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  19. (3). Papua New Guinea Sustainable Development Program: Daru Airport Project, Western Province Case Studies (cont.….) Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  20. (3). Papua New Guinea Sustainable Development Program Community Climate Change And Reforestation Project, Kompri, Eastern Highlands Case Studies (cont.….) Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  21. (3). Papua New Guinea Sustainable Development Program HIV & AIDS Community Conversation,Kefamo, Eastern Highlands Province Case Studies (cont.….) Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  22. (3). Papua New Guinea Sustainable Development Program Case Studies (cont...) Rural Electrification, Western Province. Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  23. Case Studies (Cont….) (3). Papua New Guinea Sustainable Development Program Daru Water Supply Inspection, Western Province Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  24. Challenges For Communities The Equity Sharing Arrangement Has Served As A Catalyst For Conflict: Tussle Over Decision-making Involving Intra-clan Arguments Over Control Of Clan Resources; Disputes over Landownership Rights And Entitlements To Benefits And Equity ; Increase In Number Of Registered Incorporated Land Groups (ILGs) Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  25. Challenges For Communities (cont...) Expectations Of Landowners; Consultation, Collaboration And Cooperation Between Government, Investor And Landowner (Important); Empower The Landowners To Invest Their Benefits Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  26. Challenges For Communities (cont.…) Governance And Mismanagement Issues; Instability Within Government; Inconsistency In Government Policy On Mineral And Hydrocarbon Industry Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  27. Challenges For Communities (cont.…) In An Environment Such As These, It Is The Operator Or Developers Who Are Mediating Relationships And Conflicts Involving Landowners Due To The Absence Of The State On The Ground Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  28. Governance And Institutional Frameworks Consultation, Collaboration And Cooperation Between Government, Investor And Landowner – Important; Empower The Landowners To Invest Their Benefits; Eliminate Any Issues Of Governance And Avoid Conflict Of Interests Issues Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  29. Governance And Institutional Frameworks Review Of The Current Legislation (Flow Of Benefits Such As Royalties, Development Grants, And Project Funding); Transform The Delivery Of Essential Services; Ownership Structure - In Project Equity And Ensures A Sense Of Project Control And Ownership By The Clan; Processes Of The Methodology Of Identification Of Beneficiaries And Distribution Of Benefits; Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  30. Governance And Institutional Frameworks (Cont.…) Participation - Landowners Want More Influence On The Decision-making Process That Shapes The Aspects Of The Equity Not Just The Distribution Of Benefits; Financial Risks Associated With The Funding; Implementation Of Government Policies Regarding Natural Resources - Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  31. Recommendations Review: Institutional Frameworks - (Methodology Of Identification Of Landowners/Beneficiaries) Participation By Landowners; Processes Of Responsibilities - Transparent And Equitable Distribution Of Benefits To All Affected Landowners And PNG Citizens Generally). Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  32. Wealth and Benefit Distribution (Kutubu Landowners) Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  33. Rice Farming (Kutubu) Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  34. Mbuke Island Agricultural Technologies Project, Manus Island Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  35. Papua New Guinea LNG Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  36. Recommendations (Continued…) • ‘Meaningful Accountability’: • Eliminate Conflicts Of Interests And Impediments; • Empower The Landowners To Invest Their Benefits And Direct These Benefits Towards The Improvement Of Their Lives. Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

  37. THANK YOU Hitelai D Polume-Kiele IUCN Conference, Tarragona, Spain 30 June-5 July 2014

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