The PNG Government will establish the National Petroleum Authority (NPA) as the regulator of the country’s petroleum sector.
The new body was introduced at a Parliament sitting this month after the National Petroleum Bill 2025 and the Oil and Gas Act Amendment Bill 2025 were passed. Both acts pave the way for the set-up and operation of the NPA.
The NPA will now take over from the Department of Petroleum and Energy as the administrating arm of the petroleum sector.
“The National Petroleum Authority will be the regulator of this big sector that contributes over 50 per cent of the country’s GDP (gross domestic product) and economy,” PNG Prime Minister James Marape said.
“Petroleum is an important sector, but the Oil and Gas Act has carried us for the last 20 years, and so it is timely that we change to keep up with a bigger economy and a more robust hydrocarbon industry, petroleum, and gas projects.
“Under this new framework and structure, regulations, licensing, administration of our petroleum and gas sector will be governed. This will give us a platform for us to move into hybrid production-sharing regime that has Papua New Guinean characteristics.”
Marape said investments will be better protected under the mechanism.
“This work will include protecting the return on investors so that they too are making money at the same time but that we are clear on PNG’s entitlements in taxes, royalty, equity, levies and so on,” he said.
“So I give assurance to our industry stakeholders out there. The restructure happening is not to diminish their presence or their value, but to ensure that we operate in clarity of regulation and the environment, and that their interest – in as far as return on investment is concerned – is secured.
“This authority will make it easier for all of us.”
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