The Mineral Resources Development Company (MRDC) has completed the distribution of royalty and equity payments worth K74,147,996 (approximately USD 20.8 million) to landowners from the PNG LNG Plant Site in Central Province, Papua New Guinea, marking a significant step in delivering long-awaited project benefits.
The payments were confirmed by MRDC on 17 November 2025. Representing 40% of total benefits, the funds were transferred directly into the bank accounts of 83 beneficiary clans from the villages of Papa, Rearea, Porebada, and Boera, where the PNG LNG Project’s processing and export facilities are located.
According to MRDC, the disbursements include:
- Royalty payments from 2022 to 2025 (current)
- Equity payments covering 2018 to 2025
Under the benefit-sharing structure established by the Oil and Gas Act, only 40% of total royalty and equity entitlements are paid as direct cash benefits. The remaining 60% is allocated equally into two long-term development and savings mechanisms:
- 30% to the Community Investment Trust Fund (CITF)
- 30% to the Future Generations Trust Fund (GFTF)
These trust funds are designed to support community projects and ensure long-term financial stability for landowners.
Ahead of the payments, MRDC’s External Affairs team, including petroleum coordinators, conducted awareness sessions in all four plant site villages.
The sessions explained total royalty declarations for each year and how PNG LNG royalty breakdowns are distributed. The payment schedule was also discussed, with confirmation that all future royalty payments will go directly into landowners’ bank accounts.
The National Petroleum Authority (NPA), as the industry regulator, also took part and addressed community questions, ensuring clarity and transparency throughout the process.
MRDC CEO Commends Smooth Process and Community Cooperation
MRDC Managing Director and CEO Augustine Mano praised both MRDC and NPA teams for delivering the programme efficiently over the past two weeks.
He also expressed appreciation to the plant site villagers for their patience and urged recipients to use their funds wisely.
Mano further acknowledged the leadership of Gas Resources Plant Ltd Chairlady Ulato Avei and the Plant Site Directors, noting that their guidance over the past seven years has been crucial in maintaining unity among clans and supporting MRDC’s efforts to deliver benefits fairly and effectively.
Next Phase: Pipeline and Hides Beneficiaries
With the plant site payments now completed, MRDC is preparing the next phase of disbursements to other PNG LNG Project–impacted groups. These include:
- Pipeline landowners across seven segments in Gulf, Southern Highlands, Western, and Hela provinces
- Hides PDL 7 landowners in Hela Province
The upcoming payments are expected to follow a similar awareness and direct-payment process.
