K800 Million in royalties’ hits MRDC’s account

After more than a decade of anticipation, K800 million in royalty payments owed to landowners under the PNG LNG Project has finally been released.

These funds, which had been held by the Bank of Papua New Guinea [BPNG] since the inaugural sale of liquefied natural gas in 2014, had long been the subject of repeated appeals and formal requests. Yet, despite persistent efforts, the bank had not transferred the money to the Mineral Resources Development Corporation [MRDC] until now.

Last Friday marked a momentous and unexpected breakthrough. The release of the funds coincided with two other significant milestones: the official opening of MRDC’s new office in Tari and the signing of a landmark agreement between ExxonMobil and the Hela Provincial Government to supply 5 megawatts of electricity to the province.

The convergence of these events was described by Hela Governor Philip Undialu as “purely coincidental, yet deeply meaningful.”

“This day felt like a spiritual affirmation of ‘Gigira Gas,’ the sacred ancestral flame of Hela that continues to bless and guide our people,” Governor Undialu said with pride.

He emphasized that the timing of the release seemed divinely orchestrated, arriving at a moment when Hela was prepared, united, organized, and ready to reclaim what rightfully belongs to its people.

Governor Undialu also spoke of the prophetic nature of Hela’s gas reserves.

He recounted a tale passed down from Hela’s forefathers to early explorers in the 1930s: a vision of an eternal fire burning beneath Mount Gigira, destined to cook a ceremonial pig at Kumbupara-Porgera and eventually illuminate the world.

That prophecy, he said, began to materialize in 1992 when gas from Hides powered electricity for the Porgera Mine. It later evolved into global energy contributions through the PNG LNG Project.

Despite these contributions, Hela itself remained largely in the dark for years. Only Tari town received limited electricity, supplied by diesel generators operated by PNG Power Limited, and restricted to just 6 to 8 hours a day.

The Governor lamented this long-standing neglect but expressed hope that the tide is finally turning.

“The weather was perfect, and the atmosphere was jubilant when news broke that the K800 million had reached MRDC’s account,” he said.

“It was a moment of celebration. When you return what belongs to the landowners and to Hela, blessings follow not just for us, but for all stakeholders involved.”