09/01/2026
: Kutubu Leader Calls for Action on Tax Credit Projects, Seeks New Electorate
By STAFF REPORTER in Kutubu, SHP
A senior Kutubu leader has called for immediate action on long-delayed tax credit projects in the Kutubu region, while also appealing to the Prime Minister to consider the creation of a separate electorate to drive development in the oil and gas rich area.
Speaking at the launch of the Parita to Moro road upgrade and sealing project on January 8, 2026, Mr Mark Sakai, a leader from the Kutubu region and Deputy Chairman of Trans Wonderland, said landowners have waited too long to see meaningful benefits from tax credit arrangements linked to petroleum projects.
The tax credit scheme in Papua New Guinea allows landowner groups to receive funds from oil and gas companies as part of government-approved arrangements. These funds are intended to support community development projects, including roads, schools, healthcare facilities, and local businesses, ensuring that landowners directly benefit from the extraction of natural resources on their land.
Mr Sakai said many of the development projects in Kutubu fall under these tax credit schemes, but past arrangements had failed to deliver tangible outcomes for local communities. He alleged that former project operator Oil Search used tax credit funds generated from Kutubu for major developments outside the region, including projects in Port Moresby, while local landowners saw little benefit.
“Oil Search used our tax credit money to build big projects in Port Moresby, including the Santos Stadium and APEC Haus, while nothing was done in Kutubu,” Mr Sakai said.
He said despite Oil Search exiting the project and Santos now holding a significant interest in the PNG LNG project, development on the ground in Kutubu remains limited.
Mr Sakai called on Santos to immediately commence work on the tax credit-funded road project following the official launch, saying landowners have waited nearly a year since the agreement was signed at Government House.
“We signed this agreement almost a year ago. Now that the launch is done and issues with the IRC have been cleared, the work must start immediately,” he said.
He thanked the Minister responsible for assisting Santos to resolve outstanding matters with the Internal Revenue Commission, paving the way for implementation.
Mr Sakai also urged contractors and sub-contractors to ensure communities living along the road corridor benefit economically from the project.
“Everyone along the road corridor must benefit. Small contractors must be given opportunities so that families earn income while the road is being built,” he said.
Turning to broader governance issues, Mr Sakai told the Prime Minister that historical disadvantages faced by landowners during the early days of the Kutubu oil project had contributed to ongoing development challenges.
“Our fathers were illiterate and there was no Oil and Gas Act when this project started. Everything went wrong,” he said.
Mr Sakai said the only long-term solution for Kutubu and Bosavi to achieve meaningful development is the creation of a separate electorate, and appealed directly to the Prime Minister for assurance.
“This is the only way leadership and development for the Kutubu oil project area can truly take place,” he said.
The Prime Minister and senior government leaders, including national and provincial representatives, attended the road launch ceremony, which marked a significant milestone for infrastructure development in the Southern Highlands region.
