Villagers ban `outsiders' from oil project

Land-holders of the Gobe oil fields in PNG's Southern Highlands on October 24 banned "outsiders" from entering the area and threatened to "attack" anyone who did. It is proposed that oil deposits on the land be developed by a group of multinational companies including Chevron, BHP Petroleum, Ampolex, BP and Petroleum Resources Kutubu.

The land-holders banned company personnel after negotiations broke down over levels of compensation. "There is no more room for negotiations, and my people have instructed me tell the government that the Gobe project is over", said Gobe Landowners Association president Philip Kende. Port Moresby has refused to increase land-holders' equity beyond 2% unless they pay market rates.

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