Any major government policy reforms in the mineral resources and energy space in Papua New Guinea, will be done in consultation with industry.
This was the assurance by Minister for Petroleum & Energy, Hon. Kerenga Kua, when presenting at the recent 2023 PNG Resources & Industry Investment Conference. Minister Kua reassured those present that the Marape-Rosso government remained committed to maintaining a clear channel of discussions with industry, especially on major policy changes including exempting the mining industry from the proposed production sharing regime.
“We do listen a lot to our stakeholders, that I can assure you. By listening, we have changed the form and content of it a number of times. This present version will exclude minerals, we just stick to petroleum,” the Minister said in relation to the proposed Production Sharing Agreement arrangement.
According to Minister Kua, more research is needed to be done on the financial and economic feasibility of adopting a Production Sharing Agreement option.
“The legal aspects of the proposed PSA changes were okay, however, there needed to be more research done to incorporate financial and economic aspects, to ascertain the impact this would have on industry and returns on investment by government. The conclusion of the legal drafting is, therefore, pending until the outcomes of the financial and economic studies are completed.”
Minister Kua’s announcement was welcomed by industry, with many applauding government for maintaining contact with stakeholders through the consultation process.
