Landowners' Rights under the Oil and Gas Law in PNG

The Oil and Gas Act 1998 in Papua New Guinea (PNG) recognizes the rights of landowners to participate in oil and gas projects on their land. These rights include equity ownership, royalties, and other benefits. In this article, we will explore the specific rights of landowners under the Oil and Gas Act 1998 in PNG and how they can monetize those rights.

Right to Equity Ownership

Under the Oil and Gas Act 1998, landowners in PNG have the right to participate in oil and gas projects on their land through equity ownership. This means that landowners can hold a stake in the project and share in the profits generated by the production of oil and gas. The amount of equity ownership will depend on the terms of the agreement between the landowner and the oil and gas company.

To monetize this right, landowners can negotiate for a percentage of equity ownership in the oil and gas project. They can also negotiate for a share of the profits generated by the project, which can be paid out in the form of dividends.

Right to Royalties

In addition to equity ownership, landowners in PNG also have the right to receive royalties on the value of the oil and gas produced from their land. This means that they are entitled to a percentage of the revenue generated by the sale of oil and gas.

To monetize this right, landowners can negotiate for a percentage of royalty payments on the value of the oil and gas produced. Royalties are typically paid out on a monthly or quarterly basis, depending on the terms of the agreement between the landowner and the oil and gas company.

Right to Surface Rights

Under the Oil and Gas Act 1998, landowners in PNG also have the right to negotiate surface rights agreements with oil and gas companies. Surface rights agreements govern how the oil and gas company can use the land for exploration and production activities.

To monetize this right, landowners can negotiate for compensation for the use of their land. This compensation can take the form of a lump sum payment or ongoing payments for the duration of the project.

Right to Employment and Training

In addition to the above rights, landowners in PNG also have the right to employment and training opportunities in the oil and gas sector. Oil and gas companies are required to provide employment and training opportunities to local residents, including landowners.

To monetize this right, landowners can take advantage of the employment and training opportunities provided by oil and gas companies. This can help them to develop new skills and earn a steady income.

Conclusion

The Oil and Gas Act 1998 in PNG recognizes the rights of landowners to participate in oil and gas projects on their land. These rights include equity ownership, royalties, surface rights, and employment and training opportunities. To monetize these rights, landowners can negotiate favorable terms with oil and gas companies and take advantage of the opportunities provided by the industry. By doing so, they can ensure that they are able to benefit from the development of oil and gas resources in PNG.

Location: Waigani, Port Moresby, Papua New Guinea

Comments

  1. Mr. Ponsie YasaroMarch 15, 2023 at 8:28 PM

    Your article is very informative and straightforward, those without law background can understand it better.

    Please, publish a similar article on the 'rights of the landowners on forest resources.'

    ReplyDelete

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