Asia Pacific

Exxon wants row settled

ExxonMobil Corp urged a quick resolution to a dispute between the government of Papua New Guinea and disgruntled landowners, following a protest at its $19 billion PNG LNG project over royalty disagreements.

Media reports said the protesters have given the government a seven-day deadline to pay royalties to landowners or they will forcefully shutter the operation. Landowner groups could not immediately be reached for comment.

ExxonMobil is the operator of the 6.9 million-tonnes-per-year liquefied natural gas project, partly located in the restive Highlands region of Papua New Guinea.

Its agreement with the government sets aside a 2 per cent royalty for landowners, to be held in trust by the government until they have vetted the clans that claim to own the land. The clan-vetting process has not yet been completed.

"Our facilities are continuing to operate," ExxonMobil said in a statement.

"We respect the right of individuals to peacefully protest, but we also encourage continued dialogue between landowners and the government to resolve their outstanding issues promptly."

A person familiar with the situation said production had not been affected and the protests had been peaceful. Personnel have been entering and leaving the plant while protesters gathered outside, the source told Reuters.