Hides plant on bare bones
EXXONMOBIL has suspended all non-essential work at the Hides gas plant after a man was shot dead in the Highlands on Wednesday and an expat PNG LNG worker was kidnapped as tribal fighting ramps up.
A security manager at Angore Wellpad A camp in Hela was kidnapped last week but was returned within hours, having reportedly cut down trees and blocked off the road, then torched the premises.
ExxonMobil said it was "taking the incident seriously", as it's not the first time this has happened, having endured an employee being held hostage earlier this year, also in the Hela province by armed tribesmen iwho wanted police to release a local warlord.
The PNG LNG operator confirmed to Energy News yesterday that the Hides gas plant was continuing to operate despite the strife and ExxonMobil was still monitoring the situation in the Hela Province where another 300 police will permanently stationed over the next two months to help stabilise the situation.
ExxonMobil told Energy News yesterday that the safety and security of its employees, contractors and the local community was a "top priority".
"Due to recent community tension in the Highlands (Hides, Angore, Komo), ExxonMobil PNG has suspended non-essential work. Non-essential personnel are being re-deployed to other areas."
An Exxonmobil spokesperson told Energy News in September when the payments to local landowners were supposed to have started that important progress had been made with the PNG government's commencement of royalty payment.
"Neither ExxonMobil or PNG LNG are a party to the agreements that outline how project direct revenue streams will be shared with project area landowners, local level governments and provincial governments," the spokesperson said.
However, the spokesperson also said at the time that the compnay would do teverything it could to facilitate discussion between parties and distribution of benefits to landowners and communities.
George Tagobe, former mayor of Hela's capital Tari, told Radio NZ there had been substantial dissatisfaction in the province over the government's failure to pay royalties from the PNG LNG project which continues to perform above expectations.
Tari and other places like Komo and Hides - all areas near key infrastructure for the project - have reportedly been riddled by fighting with high-powered weapons in recent weeks.
Hides landowners want the government to honour a US$11 million commitment the government made in August or they've threatened to shut down the project again.
PNG's government started paying royalties from the $19 billion project in September, marking a breakthrough after three years of operation.
Law and order
Police Commissioner Gari Baki and Shadow Minister for Democratic Institutions and the Rule of Law Kerenga Kua warned the government to immediately address the situation.
Kua said PNG was on the brink of lawlessness and ordinary citizens may not be guaranteed any protection by the country's leadership unless immediate steps are taken to address the problem.
Baki said the controversy had flared out of proportion and needed to be addressed before another state of emergency, or call out, was needed.
"I have decided to move 300 police personnel to be stationed throughout the province to maintain law and order but also maintain the aspect of the PNG LNG Project," Baki told local media.
The Commissioner said he also has the instrument to appoint 60 PNG Defence Force personnel as special constables under the provisions of the Police Force Act who will be deployed into the province.
OSH Price at posting:
$7.20 Sentiment: Sell Disclosure: Held
