4 hours Ago By postcourieronline
PETROLEUM Minister Jimmy Maladina, has announced a comprehensive review of the country’s ageing Oil and Gas Act and the Government is expected to introduce the National Petroleum Authority Act at the end of the year. At the 2024 National Petroleum and Energy Conference in Port Moresby, Mr Maladina said the Oil and Gas Act has become an established and known basis upon which capital investments are made. “The Oil and Gas Act was developed over 25 years ago, and while it has served its purpose, we acknowledge that the time has come for a review of this legislation to ensure it continues to serve the best interests of all people of PNG, while taking account of the certainty required by investors and other stakeholders,” Mr Maladina said.
He said the review aimed to ensure that the legislation continues to serve the best interests of all Papua New Guineans while meeting the needs of investors and other stakeholders. Looking a little further ahead, by early to mid 2025, the government is preparing to introduce amendments to the Oil and Gas Act. These amendments will reflect the changing realities of the global hydrocarbons sector and will include provisions for a world-class production-sharing regime,” he said.
“This will allow PNG to remain competitive on the global stage, while ensuring that the benefits of resource development are felt by the people of PNG throughout the country. “Our intention is to adopt a model that balances the needs of the industry with the aspirations of our people. “We are keenly aware of the importance of creating a win-win framework-one where industry players can operate under stable and predictable framework, while the government ensures that revenues are received from production as that production arises.
“The production-sharing regime will introduce and to sustain this balance, allowing the people of PNG to benefit at the same time as the industry. “This will allow both PNG and industry to prosper.” He assured that the Government’s goal was to create a framework that maximised revenue for the people of PNG as production arises from natural gas and oil projects.
“Our focus is now on moving to a legal and regulatory framework that is fit for purpose for the next 25 years, a period of time critical to the natural gas and oil sector, in the context of the energy transition involving the transition away fossil fuels,” he said. “In this context, time is critical, and to ensure the realisation of the benefit for the people of PNG, the Government wants a legal and regulatory framework that realises revenue for the people of PNG as production arises from natural gas and oil projects. “Let me assure you that the Government remains committed to creating a stable and competitive environment for the petroleum industry to thrive,” Mr Maladina said.
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