Landowner Funds at Risk in MRDC's Pasca Project Acquisition, Says Former PNG Minister
Port Moresby, Papua New Guinea - Former Papua New Guinea Minister for Petroleum and Energy, Kerenga Kua, has raised concerns about the recent agreement for the Mineral Resources Development Company's (MRDC) acquisition of a 50% stake in the Pasca Project in Gulf Province.
Kua expressed his belief that the deal could be a risky use of trust funds belonging to landowners. He emphasized MRDC's fiduciary duty to invest these funds with utmost care.
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| Landowner Funds at Risk in MRDC's Pasca Project Acquisition, Says Former PNG Minister |
These concerns stem from the fact that the Petroleum Prospecting License (PPL) held by Twinza, the project developer, expired in 2016. While Twinza applied for a Petroleum Development License (APDL) in 2008, the Oil & Gas Act allows the PPL to be deemed operational until the APDL application is determined.
"Sixteen years have passed since the application, and Twinza has shown little progress," Kua stated. He highlighted the uncertainty surrounding the PAB's decision and the potential loss of the US$160 million investment if the application is rejected.
Kua referenced past incidents like the Boroko Casino project where landowner funds were lost. He also mentioned the Hilton Hotel project, where government intervention was necessary to prevent collapse.
Kua pointed out the difference in investment strategies between MRDC and institutions like Nasfund and Nambawan Super, which utilize licensed investment managers. He called for amendments to compel MRDC to follow suit to safeguard landowner funds.
The former minister suggested alternative, less risky avenues for MRDC's investment in the petroleum sector. He urged the current Minister for Petroleum to thoroughly evaluate the Pasca Project acquisition before granting approval under the Oil & Gas Act.
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