The Mineral Resources Development Company (MRDC) has confirmed that the Bank of Papua New Guinea (BPNG) has released accrued royalty payments for landowners in the PNG LNG Project area into their respective trusts managed by MRDC.
The announcement was made on 22 October 2025, with MRDC stating that the release of funds marks a major milestone in ensuring project landowners receive their rightful benefits.
Mandated under the Oil and Gas Act, MRDC manages benefits for landowners in petroleum project areas across the country.
Under the benefit-sharing arrangements established during the Umbrella Benefits Sharing Agreement (UBBSA) in Kokopo before the start of the PNG LNG Project, royalty payments are first paid to the government into a trust account held at BPNG. These funds are then released to the main beneficiaries—landowners (70 percent), and the Hela, Southern Highlands, Gulf, Western and Central provincial governments, along with impacted local-level governments (30 percent).
In line with the Oil and Gas Act and the 2009 benefit-sharing agreement, royalty and equity benefits for landowners are distributed using the 40:30:30 formula: 40 percent as direct cash benefits to clans, 30 percent invested in a Future Generation Fund, and 30 percent allocated to a Community Infrastructure Trust Fund to support local development projects.
MRDC Managing Director and CEO Augustine Mano welcomed the release of the royalty payments.
“The release of the royalty payments is great news for landowners. The early release of these benefits to a number of these groups has been delayed by clan disputes and court cases,” said Mano.
He said the release was timely for the Hides PDL1 landowners, as MRDC will now proceed to complete the clan bank account opening and director election exercises so that payments 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,” he said.
For Hides PDL7 landowners, royalty benefits for 2014–2021 and equity benefits for 2014–2017 have already been paid. Their royalty benefits from 2022 to the present, and equity benefits from 2018 onward, will now be disbursed following the release of their royalty entitlement. This payment also includes the pipeline and plant site landowners.
However, royalty and equity benefits for PDL2 (Kutubu) and PDL3 and 4 (Gobe) will remain withheld until ongoing disputes are resolved.
Following the opening of MRDC’s new office in Tari, Hela Province, last week, Mano confirmed that all royalty and equity benefit processing for Hela landowners will now be managed locally.
“With the opening of the new MRDC office in Tari, all royalty and equity benefits processing for Hela landowners will now be handled in Tari, not in Port Moresby. I want to encourage all landowners and their clan leaders who are in Port Moresby to return home. We have an office in Tari now. Cooperate and work with us on the ground in Tari for the benefit of everyone,” said Mano.
He also confirmed that the account opening and directors election process for Angore (PDL8) landowners will begin once the PDL1 exercise is completed, while a ministerial determination is pending for the landowners of Juha (PDL9).
