The National Petroleum Authority and Administration of Petroleum Resources by Governments > 10
BUSINESS
Marape Welcomes New Australian High Commissioner McDonald > 28
Maru Welcomes Koegler, Austria Eyes Strategic Investments in PNG > 30
Century Peak Holdings Expands Investment Plans in PNG >
Datec-backed PNG Technology & Innovation Summit 2025 Sets Milestone in Country’s Digital Evolution >
PM Praises EU Partnership at Europe Day Celebration >
DoWH Updates on New Southern Corridor Road Links, Hiritano Highway >
EastWest Transport, PNG Customs sign MOI > 38
PNG Proposes Comprehensive Economic Pact to Japan > 40
PNG CORE Supports Global Call to End Plastic Pollution > 42
PNG Ports Sets Major Upgrade Program > 44
DoWH, DLPP Sign MoU for Road
”Designing spaces involves so much more than simply drawing a plan on a page or an image on a screen. Crafting a quality design that carefully merges architectural style with practical solutions that will benefit the building’s inhabitants and the community, demands great responsibility and expertise. It is a privilege – a chance to give an enduring gift to this generation and those to follow.”
Peddle Thorp Asia Pacific (PTAP) is an architectural design practice dedicated to creating places for people, not just buildings. We are the architects of choice for those seeking a refined aesthetic combined with superior functionality. Our work positively impacts how people work, live, care, play, and learn. We specialise in creating places and spaces for communities. We design residential buildings, hospitals, aged care facilities, retirement communities, schools and universities, libraries, museums, art galleries, and courthouses.
Our expertise extends beyond community focused projects. With a strong foundation in architectural, interior design, urban design, and planning, we bring a wealth of experience to every
delivery. PTAP is a PNG registered company based in Port Moresby. It is an investment shared by Peddle Thorp PNG and Queensland based Peddle Thorp, which operates in Brisbane, Cairns, Townsville and the Gold Coast. Our practice has led and collaborated on major projects across Australasia and internationally, earning recognition for excellence.
CONTENTS
OIL & GAS
Sivasamboo Tapped to Lead ExxonMobil in PNG > 84
China State Construction Invited to Invest in PNG’s Petroleum Industry > 84
Kumul Petroleum Marks Milestone with Seismic Program > 86
AGRICULTURE
Turning Beans into Gold: PM Urges PNG Farmers to Seize Cocoa, Coffee Boom >
Sri Lankan Coconut Giant Eyes Madang for New Processing Plant >
Marape Backs NARI’s New Agri Info & Data Centre Initiative >
MRDC Expands Cocoa Project from Gulf to Southern Highlands >
TOURISM
Tourism Legends Honored at PNG National Conference >
SPTO, PNGTPA Release Business Confidence Index Survey > 102
BPNG Sets New Executive Structure to Drive Vision 2050 > 106
PNG Banners Inaugural Green Finance Summit > 108
Education for Nation Building: Celebrating 60 Years of PNG IBBM > 128
COMPANY
Something for Everyone at NiuHomes > 130
Ark Modular Buildings Superior to Timber Alternatives > 132
NiuSky Strengthens PNG Aviation Safety with
Do You Think You Know The Stanley Hotel & Suites? Think Again: Come, Experience and Confirm > 150
Steamships Taps Kissam as First Woman GM of Corporate Affairs > 154
Swire Shipping Launches First Biofuel Services to Pacific Islands > 158 164
Accredited Training
Comprehensive courses ranging from safety protocols to leadership development.
Labour Hire & Placements
Rapid deployment of vetted, high-quality personnel to meet your project needs.
Workplace
Compliance Auditing
Proactive assessments to ensure safety and regulatory adherence.These courses add validity to the company confirming its capability.
The National Petroleum Authority and Administration of Petroleum Resources by Governments
THE NEW DAWN
On 12th March 2025, the Minister for Petroleum, the Hon. Jimmy Maladina announced that the National Parliament of Papua New Guinea had passed the National Petroleum Authority Bill as “a landmark legislative reform that will transform the governance and management of the country’s petro leum sector.” The Minster’s press statement went on to say, “This is a historic moment for Papua New Guinea’s petroleum industry. The passage of the NPA Bill marks a new dawn, one that will bring greater efficiency, transparency and accountability to the sector. This reform is long overdue, and I am proud that we delivered it today.” The new legislation was subse quently certified by the Speaker of Parliament on 28th March 2025. Indeed, it does mark a new dawn for the government management, administration and regulation of
EDITOR’S NOTE: Michael McWalter, former Director, Petroleum Division and Adviser to the Government of Papua New Guinea discusses the recent passage of the National Petroleum Authority Act reflecting on prior efforts to establish the National Petroleum Authority, the need for a competent petroleum regulatory authority and provides some examples of arrangements and reforms of petroleum regulatory institutions around the world in which he has been involved.
Figure 1: Press Statement by
through the discovery, development and production of commercially viable oil fields, to the development of the large PNG LNG Project which exports gas as Liquefied Natural Gas (LNG) to East Asian markets. More exploration is planned and there remain several large gas fields to be developed in the planned Papua LNG Project and the P’nyang LNG Project as well the offshore development of the Pasca A gas field and the potential development of other disparate gas fields which may have commercial value if aggregated.
EARLY PLANS FOR THE NPA
The notion of the establishment of a National Petroleum Authority was first muted by two of Papua New Guinea’s most distinguished leaders: Sir Michael Somare and Sir Julius Chan when respectively as Ministers for Natural Resources and Finance they presented their landmark and enlightened White Paper to Parliament in March 1976: Government Statement on Petroleum Policy and Legislation. This White Paper established the petroleum regime and laid the foundation for its laws and regulations, which were then elaborated by the Petroleum Act, 1977 and subsequently by the OiI and Gas Act, 1998 and its Oil and Gas Regulation, 2002. One of the main administrative tenets stated in that White Paper was that a specialised Government agency, the National Petroleum Authority, would be established after the first commercial petroleum discovery to administer the State’s participation interest and to exercise the Government’s responsibilities in the industry.
FIRST COMMERCIAL DISCOVERY & SUBSEQUENT INVESTMENT
After the discovery of commercially viable volumes of crude oil at Kutubu with the successful drilling and testing of the Iagifu 2-X well in 1986 and several appraisal wells, Papua New Guinea’s first commercial oil development commenced full-scale production. The Kutubu Petroleum Development Project operated by Chevron Niugini dispatched its first cargo of 450,000 barrels of Kutubu Crude to Japan on 3rd July 1992 aboard the MV Ten-ei Maru.
During those years immediately after the Iagifu 2-X well, Papua New Guinea became the vogue place for oilmen to be. Investment in exploration flowed rapidly into Papua New Guinea in the expectation of further discoveries of oil fields. In the twenty years after that discovery, Port Moresby was littered with oil and gas companies large and small that needed to be in this opening frontier of exploration. Together they spent a staggering PNG Kina 2.85 billion which amounts to US$ 1.76 billion at the relatively higher USD/PGK exchange rates of those days, or about US$ 3.9 billion in today’s money. Alas, it is sometimes forgotten that oilmen are not philanthropists; they like to make a return on their investments and recoup their money. This investment provided for the drilling of some 150 wells and 108 seismic surveys which found moveable hydrocarbons in 61 wells and located 20 new fields, though many of these contained natural gas rather than oil.
EARLY MANAGEMENT OF THE UPSTREAM PETROLEUM INDUSTRY
The legislation stemming from the 1976 policy was adequate enough for these early exploration endeavours, but quickly became insufficient when matters of petroleum development, production, and transportation and community benefits had to be addressed. Accordingly, the legislation was overhauled with the introduction of the Oil and Gas Act 1998 which incorporated specific treatment of natural gas, the grant to traditional landowners, Provincial Governments and Local-level Governments of benefits arising from projects for the production of petroleum, and provisions for the processing and transportation of petroleum and petroleum products. Concomitant with these legislative developments intense efforts were made to build the capacity of the Government to manage, administer and regulate the emerging industry. Successive technical assistance projects were undertaken to train and develop staff of the responsible Department, primarily through World Bank financing, but with some additional support from the German Government and the Asian Development Bank. Institutional development came hand-in-hand with this, as the petroleum industry grew like a Cin-
derella to the already well-established mining industry.
In 1983, the Petroleum Resources Assessment Group was created in the Geological Survey of Papua New Guinea, a Division of the then Dept. of Minerals and Energy, and rapidly became the Petroleum Branch in 1987 and then a full Division of the Government when the Dept. of Mining and Petroleum was created in 1993. This new Division was responsible for all petroleum matters: licence administration; preservation of the petroleum archives and collection of new data from licensees; petroleum geology and prospect assessments; petroleum engineering and inspection; landowner and local and provincial government coordination; petroleum economic analysis; legal matters and policy development and formulation. That Division was then elevated further when the Dept. of Petroleum and Energy was created in 1997, of which the Petroleum Division was the kernel. The investment in training and capacity building paid off very well, and the Petroleum Division became a power-house of National petroleum expertise. Over thirty selected members of staff were sent to anneal their work experience and training by study overseas at reputable international universities for specialist Master Degrees related to their areas of work. A strong cadre of dedicated National petroleum specialists was thus established.
RENEWED INTEREST IN AN NPA
In 2000, mindful of the original plan for the Government to create a National Petroleum Authority, in negotiating with the World Bank for further technical assistance prominence was given to such a transformation and a commitment was made by the Government to make preparations for the establishment of a National Petroleum Authority. However, as Parliament is sovereign no absolute commitment was made by the State to create the Authority, but detailed preparations were indeed made. These included: draft corporate plans; functional structures; financial management design; revenue and cost recovery models; administration guidelines; financial models; merit appointment schemes; staff qualifications and experience criteria; transition plans; performance man- Page 14 >
FEEL THE POWER - JUST DRIVE IT
Built tough for PNG’s rugged terrain, the Ford Stormtrak is ready for any challenge. Powered by a 2.0L Bi-Turbo diesel engine with 500Nm of torque, it delivers unstoppable performance. Featuring a 10-speed automatic transmission, 4x4 capability, and smart SYNC®4 infotainment, it’s the ultimate pickup for work and adventure.
agement systems and accompanying submissions to the National Executive Council. This work was completed in 2006, but for reasons unknown progress towards political endorsement of these plans did not eventuate.
One cannot say for certain what happened and one can only speculate whether the industry was wary of such an institutional evolution or whether the Government itself might have been nervous of creating an institution of such significant National prowess, knowledge and strength surrounding such a precious industry. The Mineral Resources Authority had been successfully created some years earlier with much support from the mining industry, but only in a fashion desirable to themselves and with their involvement. Planning for the National Petroleum Authority did not permit such industry intervention. Moreover, unlike the Mineral Resources Authority, the plans for the National Petroleum Authority did not allow for a vestigial government role such as the Dept. of Mineral Policy and Geohazards Management has. All functions associated with the petroleum industry were to be put into the National Petroleum Authority including policy and it was to report to the responsible Minister. Unfortunately, with no realisation of the National Petroleum Authority many of the most competent, welltrained and dedicated officers of the Petroleum Division lost faith in its emergence and took up appointments in the petroleum industry both in Papua New Guinea and overseas. This put severe pressure on the Dept. of Petroleum and Energy to perform with ever-expanding and more complex functions, although within the Papua New Guinea diaspora and locally it did create a large cadre of qualified National petroleum expertise. One of the visions of the National Petroleum Authority was that it might provide an enhanced reward basis for its staff commensurate with their skills and experience to compete with industry standards, and thus help retain competency and capacity.
THE NATIONAL PETROLEUM AUTHORITY ACT, 2025
So, now in 2025, some thirty-nine years after the first commercial oil
discovery and thirty-three years after the commencement of commercial production, the National Petroleum Authority has finally been established by an Act of Parliament. Its specific responsibility is to provide an administrative framework for the implementation and enforcement of laws and policies governing petroleum activities and matters in Papua New Guinea and in doing so it has replaced the former Dept. of Petroleum and Energy. The Authority has nineteen clearly stated and specific functions defined in the Act. These are consistent with sound and appropriate management, administration and regulation of the upstream petroleum industry in accordance with the Oil and Gas Act to ensure industry best practices and standards in terms of safety, environment and for the maximum benefit of the State and all stakeholders.
The Authority is a body corporate with a Board comprised ex officio of its Managing Director, the Secretary of the Dept. of Treasury, the State Solicitor, and four other non-ex officio members, one of whom is an industry expert. Specific disqualifications apply to these non-ex officio Board members who must not have any conflicts of interest or be compromised in any way. The non-ex officio Board members are appointed for a paid four-year term and are eligible for re-appointment for not more than two terms. A Chairman and Deputy Chairman of the Board are appointed by the National Executive Council on the recommendation of the Minister. The Board has the defined functions to direct the affairs of the Authority; determine the policies of the Authority in accordance with directions from the Minister; approve the appointment, terms and conditions of the Managing Director, Chief Inspector, Inspectors, Chief Warden, Wardens and staff of the Authority; and oversee the Authority and the Petroleum Advisory Board. The Board must also ensure that the Managing Director implements each direction of the Minister and the Petroleum Advisory Board, and any direction for the development of policies for the sector and policy directions of the Minister in accordance with law and Government policies and priorities as determined by the National Executive Council.
There are normal administrative
requirements and procedures for staffing, codes of conduct, funding, expenditure, accounting, audit, and reporting. Importantly, within the funding is the establishment of a National Petroleum Authority Levy imposed on all producers and exporters at the rate of 0.5% of gross sales revenue of crude oil, gas, liquefied natural gas, condensates and liquid petroleum gas. However, this levy shall be deducted from the tax payer’s assessable income pursuant to the Income Tax Act, but it does not provide complete relief and represents an effective and regressive increase in income tax to the petroleum producer. Quite how this will be managed in the context of fiscal stability agreements made between various licensees and the State remains to be seen. No periodicity or manner of payment is specified for this levy.
There are provisions for transition and transfer of the Dept. of Petroleum and Energy Departmental Head and Departmental staff to the new Authority on the same terms and conditions as are currently effective, until reappointed under the National Petroleum Authority Act, or positions are made redundant. Thus, the Authority seeks to start with some inherited capacities as they may exist in the former Dept. of Petroleum and Energy rather than starting its operations afresh.
The National Petroleum Authority Act is concise and does not seek to tamper with the Oil and Gas Act, or the roles of its key actors. The Minister remains the Minister responsible for the OiI and Gas Act and the Managing Director of the Authority performs the role of the Director, Oil and Gas Act. The Petroleum Advisory Board of the Oil and Gas Act remains with its functions of reporting to the Minister. The National Petroleum Authority Act is thus complimentary to the Oil and Gas Act.
Quite how the Authority will work in practice remains to be seen; much will depend on the rigour of its detailed establishment and its observance of its code of conduct and internal guidelines. One would hope that the Authority might attract some of Papua New Guinea’s best. Certainly, there are plenty of experienced Papua New Guinea petroleum industry personnel around now after more than three decades of oil and gas production who might wish to bring their
experience and dedication to bear on the future of the National economy by working at the Authority.
THE COMPETENT PETROLEUM AGENCY
A sound and competent petroleum industry regulator is required by any Government that wishes to explore for petroleum accumulations, develop them and produce the discovered petroleum resources. That regulator should have the very best people engaged with good qualifications and extensive experience, but above all integrity, and they should be given good compensation. After all, in looking after the Nation’s petroleum resources, they are looking after the Crown Jewels of the Nation! Capability and competency are essential to the success of such a regulator, as is its freedom from political influence other than sector policy direction.
As to whether the role of the competent agency is vested in the National Oil Company, a Government Department, a Commission or an Agency is a choice, though instinctively it seems better to separate the management of Government equity interests in the sector from the regulation of the sector. It is also best not to leave the agency in the milieu of Government Departments limited by public service restrictions, unduly limiting staff compensation and procurement capacities for special and often expensive industry requirements, such as petroleum system, reservoir, facility and pipeline modelling software.
Some countries have started with traditional Government entities of one kind or another: Departments of Government or Petroleum Authorities, Agencies or Commissions depending on the degree of autonomy that the Government wishes to give to it. Other countries have started by granting all petroleum resource rights to a National Oil Company which then contracts oil and gas companies to work for it. What is important is that there is a recognisable competent government agency vested with the exclusive mandate to implement petroleum sector policy providing a single-contact point as a one-stop-shop. It should be a centre and focal point of petroleum expertise in service to the Nation.
The competent agency should represent the State in negotiations, contracting, regulation and administration of the petroleum sector without interference by other stakeholders who may have vested or particular interests that might sway thinking and pervert National sovereignty. It should be well-staffed and strong in sectoral expertise and experience, but ever-mindful of generational succession and the inevitable attrition of capable staff into the industry. Continuous institutional strengthening and training must be undertaken to build, and importantly maintain capabilities.
It is good practice to even separate the State’s patrimony and licensing of its petroleum resources from the administration of the sector as far as is possible. The best approach is where the Government Ministry responsible for petroleum matters sets and establishes broad sector policy, whilst the competent agency administers it.
In some countries with a long history of petroleum resource development, the National Oil Company may already be a de facto competent agency, though this is not recommended. However, competency is the key and the environment of a well-funded and well-intentioned National Oil Company may sometimes provide better for staff retention and enthusiasm as well as providing better facilities for them to conduct their work. A problem arises when a National Oil Company allocates acreage to itself in competition with potential investment by qualified major oil and gas companies. Such might be a strong disincentive to foreign direct investment
Where a country is new to the petroleum sector, it needs to create a competent petroleum agency from the start with adequate expertise and authority using experienced advisers both local and international to get it functional. In some cases, interim arrangements may have to be sought like a special petroleum office, or inter-Departmental/Ministerial Council or consultative group to avoid internal competition.
Ultimately, whether a Government settles petroleum sector responsibility on an Authority, a Commission, a Department, a Ministry, or on a National OiI Company, it does not matter; such is only a title. What is essential is: competency and integrity to take on the vital role of being guardian of the Nation’s petroleum resources for the benefit of the people and the Nation.
SOME CASE STUDIES AGENCIA NACIONAL DO PETROLEO, D.R. SAO TOME AND PRINCIPE
The small nation State of the Democratic Republic of Sao Tome and Principe is an African island-nation located in the Gulf of Guinea, off the western equatorial coast of Central Africa. It consists of two main islands of Sao Tome and Príncipe, about 150 kms apart and about 250 kms off the north-western coast of Gabon. In July 2003, the army seized power for one week, complaining of corruption and that forthcoming oil revenues would not be divided fairly, although no exploration had even begun. An accord was negotiated under which the President was returned to office after his Government had, perhaps incautiously, entered into agreements with certain petroleum companies to grant petroleum exploration and production rights on decidedly unfair terms to the Nation. As a heavily indebted poor country, part of the international assistance to aid reconciliation was for sovereign debt to be waived and for a proper institution to be established for the management of petroleum resources and a formal central bank established to oversee financial matters.
I was dispatched by the World Bank to help develop the Agencia Nacional do Petroleo, where ten public servants from various parts of the Government had been assembled in an old house. During twelve visits over a period of six years, the
Figure 2: Some petroleum agencies from around the region
Vietnam Malaysia Indonesia Timor Leste Philippines Cambodia China
Agencia Nacional do Petroleo came into full functional operation with a staff of a little over twenty people led by an Executive Director. The old legacy contracts were renegotiated, the petroleum laws updated, a study of the petroleum prospectivity of the Economic Exclusive Zone conducted, a new fiscal and commercial regime put in place and a licensing round commenced, all concomitant with much staff training and extensive capacity enhancement.
The Agencia Nacional do Petroleo became a well-respected competent petroleum agency to which the Government, the Minister, elected representatives and the people referred their sector concerns. D.R. Sao Tome and Principe shares an interest in the Joint Development Zone covering waters between D.R. Sao Tome and Principe and the Federal Republic of Nigeria, in which Chevron made a non-commercial oil discovery at the Obo 1 well in 2006. It also hosts a wide variety of oil and gas companies in its Economic Exclusive Zone comprising: Galp Energia, Shell, TotalEnergies, Sonangol, Kosmos, Petrobras, Oranto, Equator and BP, amongst others, all of which now have the confidence to invest on clearly defined and reasonably fair terms.
CAMBODIAN NATIONAL PETROLEUM AUTHORITY, KINGDOM OF CAMBODIA
The Cambodian National Petroleum Authority had been established in 1998 after some degree of exploration success had been obtained in the Cambodian part of the offshore area of the Gulf of Thailand. Nine exploration wells were drilled between 1993 and 1998 of which three flowed oil and gas and four had oil and gas shows, but a commercially sufficient volume of recoverable reserve was not reached. The sector was oddly administered under a Petroleum Regulation adopted
from Nepal and introduced in 1991 without any comprehensive governing petroleum law. The Cambodian National Petroleum Authority was authorised as an entity of the State to negotiate, agree, regulate, supervise and monitor petroleum exploration operations through petroleum agreements with petroleum contactors.
In March 2002, Chevron entered Cambodia with their extensive experience of the petroleum geology of the Gulf of Thailand gained when they had earlier acquired Union Oil of California (Unocal). Chevron drilled several dozen wells in what is known as the Khmer Trough in the western part of Cambodia’s offshore area adjacent to the so-called Overlapping Claims Area – an area of the Gulf of Thailand claimed by both Thailand and Cambodia. These wells both re-discovered earlier finds and made several new
National Petroleum Authority was quite dysfunctional with an operational leadership that failed to involve the substantial staff of the Authority and somewhat mismanaged the sector. I came into the Cambodian National Petroleum Authority in 2006 to help reconcile some of these problems and restore functional capacity. This involved complete reorganisation of the Authority and empowerment of its staff to perform their jobs. Attempts were also made to reconcile the discordant fiscal arrangements applicable to Chevron, which spurred by successive exploration successes, wished to proceed with a staged development of their discoveries.
Over a period of six years, I made scores of visits during which a new Director General was appointed and the roles of the Vice Chairman and the staff were restored to full functionality.
discoveries, but they were all small discrete deposits in fault traps, or compartmentalised reservoirs. Chevron had a Petroleum Agreement, essentially a production sharing agreement, with the Government, but its terms were not consistent with the prevailing Law on Taxation, and there was no supervising petroleum law, just the Petroleum Regulation. Added to these problems, the Cambodian
Hitherto, visiting Non-Government Organisations had been fearful of entering the compound to be briefed on the sector, but after the reforms all stakeholders were welcomed and the business of sector management and regulation proceeded as normal. A new all-encompassing Petroleum Law was devised and a more robust framework for petroleum sector development was embraced. Page 20 >
Figure 3: At the Agencia Nacional do Petroleo in Sao Tome training the staff, October 2006
Figure 4: Location map of D.R Sao Tome and Principe of the coast of West Africa
Figure 5: At the Cambodian National Petroleum Authority with key staff December 2012
PETROLEUM COMMISSION, GHANA
Exploration offshore Ghana commenced in the period 1999 to 2003, inspired by successful deepwater discoveries made in the region, when four deepwater wells were drilled in Ghana. They proved the existence of an active petroleum system when Hunt Oil’s WCTP-2X well encountered a 14ft column of light oil. In 2007, Kosmos Energy with partner Anadarko, Tullow Oil and E.O.
Group found a 312 feet column of high grade oil in the Mahogany-1 well. Successful appraisal by the Odum, Mahogany-2, Heydua-2 and Mahogany-3 wells led to development of what was to become the giant Jubilee field led by Tullow. Production began in 2010 from an estimated total proven recoverable reserve of around 3 billion barrels at 150,000 barrels per day. This happened very quickly under the management of the Ghana National Petroleum Company, but inadequacies and conflicts of interest in regulatory management of the petroleum industry were readily apparent.
In 2011, the Government of Ghana established a Petroleum Commission pursuant to the Petroleum Commission Act, 2011 with the responsibility to regulate and manage the utilisation of petroleum resources and to coordinate the policies in relation to them. Hitherto, the Ghana National Petroleum Company had been the effective upstream petroleum sector regulator, entering into Petroleum Agreements on behalf of the Republic of Ghana with petroleum contractors with the Ministry of Energy taking a back-seat. Now the Government wanted to have just one entity, which would be in overall charge of the petroleum industry, rather than having several different agencies of Government dealing with different, and possibly overlapping aspects. The Ministry of Energy was to retain policy formulation, direction and supervision, and the new integrated Petroleum Commission would man-
age the industry. The GNPC was to remain as a company which would be responsible for managing sector State participation interests, though its special relationship as an adviser to the Ministry would end. The new integrated Petroleum Commission Authority would become the principle adviser to the Ministry of Energy.
The proto-Commission started off with a dozen or so Government officers brought together and housed in a four-bedroom apartment. They were headed by a Chief Executive Officer, a senior public servant especially appointed by the Minister for Energy to the position. My job was to mentor staff in the technology and practices applied by the petroleum industry with emphasis on exploration and production. I also had to develop specific training plans for key Petroleum Commission staff and assist the Petroleum Commission in establishing the organisational and work processes and functions needed to effectively regulate and monitor petroleum activities with primary emphasis on: resource classification and estimation; contract administration;
local content; well permitting, field development; and production measurement and reporting. I also had to support the Commission in technical discussions with petroleum operators and guide the critical review of technical reports, work programs, budgets, and drilling applications received from operators.
Fortunately, I was not new to Ghana as I had helped the Ministry in 2009 to review the then proposed Ghana Petroleum Upstream Petroleum Authority Bill and the existing Petroleum (Exploration and Production) Law, 1984, and certain proposed draft regulations: the Petroleum Upstream (Licensing) Regulation, 2009 and the Petroleum Upstream and Midstream (Exploration, Development and Production Operations) Regulation, 2009. Also in 2010, I had provided the technical input for the World Bank appraisal of an Oil and Gas Capacity Building Project for the Government. Now, my task was to bring about some functionality to the new plans for regulation of the petroleum industry. Page 22 >
Figure 6: Map of offshore area of Ghana showing oilfields (in red) and rectilinear contract areas
Figure 7: At the Ministry of Energy, Ghana reviewing draft laws to reform the management, administration and regulation of the petroleum industry with the Ghana Petroleum Commission
LIBERIAN PETROLEUM REGULATORY AUTHORITY
In Liberia, the problem was that the National Oil Company of Liberia (NOCAL) had been running the Government’s oil business as though it was their own private business. Much money had been collected from sales of offshore seismic data in anticipation of Liberia joining the ranks of the continental margin oil producers of West Africa, but nothing seemed to flow to the Government. It seemed that NOCAL looked after itself to the neglect of the Government, and particularly its primary role of regulating the industry. My role was to define the structure and shape of a new Government agency within the structure of Government departments and agencies to take over from NOCAL. This was difficult because I was assigned to the very agency that was the cause of concern – NOCAL. Consequently, nobody wanted to speak to me within NOCAL, though advisers to the President, Senators and the like had much to say.
The concept was sound though: to create a proper competent petroleum regulatory agency and preliminary plans were indeed made. Alas, the outbreak of Ebola in early 2014, brought everything to a standstill, and the further involvement of the World Bank was curtailed. Subsequently, the Liberian Petroleum Regulatory Authority was indeed established by Liberia’s 2014 Petroleum Exploration and Production Law. High level support for this change was vital and subsequent Presidents have consistently endorsed the enlightened policy of Madame President Ellen Johnson Sirleaf who guided this important transition of regulatory management. The President’s son was so keen for my return to Monrovia that he had a special re-entry permit made for me and couriered to Port Moresby, and he even offered me Liberian citizenship, if I would remain! Recently, I heard that some senior officials of NOCAL were eventually sent to jail for their malfeasant use of a NOCAL monies.
PETROSEYCHELLES, SEYCHELLES
PetroSeychelles was different again and my visits there in 2012 and 2013 were perhaps one of the more readily embraced exotic destinations for a petroleum adviser. However, going to an Indian Ocean resort-island on mission for the World Bank was incongruous, wearing a dark suit, white shirt and tie (World Bank uniform) whilst tourists around one were scantily dressed. However, PetroSeychelles was not wanting in institutional capacity for the relatively very slow pace of their petroleum industry; they had a few well-trained and experienced members of staff who were quite capable of managing the occasional episodes of petroleum exploration. My mission, jointly conducted with colleagues from the IMF, was to explore opportunities to enhance petroleum exploration, quite cautiously, given the pristine nature of their coastline and its beautiful sandy beaches. The Government of Seychelles was mindful of the impact of continued tourism, just as much as it was aware of the potential impact of petroleum resource development, but it wished to consider diversification of its economy. The Seychelles sits on a micro-continental crustal block left behind during the break up of Gondwana between Western India, eastern Somalia and north-eastern Madagascar. The sliver of continental crust also hosts Mauritius and is known as the Mascarene Plateau. It bears continental sediments conducive to hosting oil and gas accumulations.
Just four wells have been drilled historically in the Seychelles, none of which have found moveable oil or gas, though signs of good hydrocarbon source rocks, and the generation and migration of oil and gas were noticed along with good clastic reservoir rocks. The work involved the provision of advice to PetroSeychelles and the Government variously on: measures to foster exploration; choice of fiscal and commercial regimes; State participation; investment promotion; selection of petroleum contractors; enhanced
regulatory capacity; and environmental controls and safeguards. Recently, the Republic of Seychelles and the Republic of Mauritius have agreed to have coordinated petroleum exploration within the Joint Management Area of the Mascarene Plateau in an area where their Economic Exclusive Zones overlie.
MINISTRY OF PETROLEUM, SOUTH SUDAN
In South Sudan, the issues were again different. In the wake of the division of the Republic of Sudan into two new countries after a protracted conflict of many decades, the people in the south in what was to become the Republic of South Sudan found they had little expertise in managing and regulating the oil fields they inherited in the separation. Previously, the oil and gas business had been run exclusively from Khartoum in the largely Arabic, Muslim, arid north of Sudan. Now, those who had ardently fought
Figure 8: The Mascarene Plateau (light blue) east of the island of Madagascar hosts the island states of the Republic of Seychelles to the north and the Republic of Mauritius to the south.
Figure 9: With the relatively meagre staff of PetroSeychelles in their equally small, but adequate offices. The cameraman is Eddy Belle, the Managing Director
for independence, the Christian, black minority in the savannah lands of the south had to deal with legacy petroleum contactors producing more than 220,000 barrels per day. Added to this task, the produced oil still had to be conveyed by pipeline through the lands of their former foe, the Republic of Sudan, which excised a high tariff and any agreed fee per barrel for war-time reparations. There was clearly a deficiency of skills for which the Ministry of Petroleum sought capacity enhancement. Initial efforts had included the Norwegian Oil for Development Programme, but that brought a transplant of Norwegian ethos and much rigidity. A complimentary USAID programme brought an experienced adviser who swanned around the Minister only, without engaging the staff.
I came with my former World Bank consultant colleague from Cambodia who handled the financial side of the oil and gas business, whilst I handled the petroleum operations and regulatory side of matters. It took time to establish ourselves, but we patiently concentrated on helping the staff to do their work, rather than supplanting a foreign system on top of them or relegating the staff by traipsing about courting the Minister. We put our feet on the ground and made our collective skills and experience available to the Director-General of Petroleum helping him to develop his staff capacity with our responsible advice, and much teaching. We became well-respected for enabling and facilitating the staff in the conduct of their work.
The work was interrupted frequently by militia activities, and sadly by South Sudan’s own civil war ostensibly between rival leaders President Salva Kiir Mayardit, a member of the Dinka ethnic group and Vice President Riek Machar Teny Dhurgon, a member of the Nuer ethnic group at the end of 2013. Some 400,000 people lost their lives and one of the producing oil fields at Heglig was obliterated.
Our work was focused on helping the Government manage and regulate its petroleum industry to optimise its economic outcomes by capacitating the staff, but when the World Bank quarrelled with the President about oil revenues being spent on defending his democratically-elected Government, the Bank’s
entire development programme was summarily curtailed. In some other countries in which I have worked, Western allies have flown air force fighter sorties over the national capital to help defend the democratically-elected Government, but not in this case. Oil production and export is the life blood and the only major revenue source for the government of the Republic of South Sudan, so it was quite sad to see Western disdain and apathy, so played out.
LESSONS LEARNED
One might discern from the above that there is no perfect solution for petroleum resource management, administration and regulation. In two of the above case studies, the National Oil Company was removed from its responsibilities for such, and new Government regulatory entities created. In the case of D.R. Sao Tome and Principe, an initial petroleum agency was created where previously petroleum resource matters had been dealt with at
Ministerial and Presidential level only. In the case of Cambodia, a distraught petroleum authority was resurrected and restored. And in South Sudan, left in the lurch by independence from Sudan, the capacities of the Petroleum Directorate of a new Government Ministry had to be enhanced. In all cases, the prevailing necessity was to gain National functionality with competency in the task of management, administration and regulation of the petroleum upstream sector.
It is apparent that a role remains for a well-run National Oil Company to look after State commercial interests in petroleum production and sometimes State exploration endeavours, but clearly problems arise if the National Oil Company tries to be the regulator at the same time, or gets beyond the control of the Government. Competency is the key ingredient for successful petroleum resource management, administration and regulation. With that is the need to adequately reward the staff of any
Figure 10: President of South Sudan Salva Kiir Mayardit (left) a member of the Dinka ethnic group with Vice President Riek Machar Teny Dhurgon (right) a member of the Nuer ethnic group when they agreed a peace deal in 2019.
Figure 11: At the Ministry of Petroleum, Juba, South Sudan with financial adviser and colleague Tony Galisheff after running a workshop on petroleum operations. April 2014.
Government regulatory entity with attractive enough remuneration to dissuade them from accepting the often times more lucrative rewards offered by the industry. Whilst necessarily being Government entities with appointment of their leadership by the Government, as far as possible, petroleum professionals should be sure and safe in their roles and appointments from political intrusion.
Constant attention needs to be paid to capacity enhancement and succession, lest competency and capacity are lost, or otherwise whittled away by a loss of integrity, corruption or other malfeasance. The management, administration and regulation of a Nation’s petroleum resources needs to attract the very best, qualified and most dedicated intellects within the nation that are prepared to work hard and defend the State’s rights firmly and fairly in front of very experienced oil and gas corporations.
An abundance of staff is not a solution, whilst having a capable staff is. Petroleum agencies with supernumerary staff are neither efficient nor productive; they can also be expensive and distracting to those that wish to act professionally. The staffing level should be fit for purpose for the breadth of the petroleum responsibilities given to the agency. For instance, in managing a petroleum production sharing contract, considerably more personnel might be needed on staff to oversee the sub-contracts of the petroleum contractors, and to subsequently oversee the approval of
petroleum contractor costs eligible for cost recovery.
In creating a new competent petroleum agency, it might be advised that a clean-sheet approach ought to be used whereby the management of the new entity hand-picks its staff from amongst those who worked for any prior organisation and the wider public. It is essential that the new entity is led by a most competent Government-trusted, well and appropriately educated and experienced leader. Such was the case in Ghana where the pace of development of the Petroleum Commission was much accelerated by having a champion as its first Chief Executive Officer. Equally, a Government must be prepared to dump leadership of any petroleum agency that cannot live up to expectations, either of the Government itself, or indeed the industry. The industry responds well to certainty, consistency, and firm and fair management, administration and regulation.
The competency of a Government petroleum agency must be enduring and not quixotic as the life cycle of petroleum projects is generally much longer than the life of any particular Government. The competent petroleum agency must keep up with technology and changes in all manner of circumstances, along with changes in societal acceptability of the very notion of extracting hydrocarbons from under the Earth and selling them for combustion as an energy source.
The competent petroleum agency should keep abreast of all new ways and fashions, as innovative, well inten-
tioned, as devious as they might be, or otherwise designed to improve the outcome from industry investment, such as local content. It should be making recommendations to the executive of Government for improvements to embrace new ways and accommodate the development of the scope of the nation’s petroleum industry as it progresses. Rather than sudden changes of regime, continuous fine-tuning should become regular business.
With respect to the newly-established National Petroleum Authority of Papua New Guinea, it will take time to fully grasp its responsibilities and gain the confidence of its stakeholders. Impediments to achieving that desired necessary competence will need to be removed. One might worry that the added task of changing the established petroleum regime of Papua New Guinea from that of a concessionary licensed, tax and royalty one to that of a production sharing contract one might be a burden to embrace simultaneous with transition to being a statutory authority. Skills in the management, administration and regulation of production sharing contracts will have to be learned rapidly with much rigour less the adverse habits of such regimes infect the process.
Lastly, I wish the Government of Papua New Guinea well with its ambitious challenges, but I am confident these will be a change for the good of Papua New Guinea and its people, so that best outcomes can be realised from the development of Papua New Guinea’s petroleum resources.
We offer a comprehensive range of top-quality machinery, gensets and equipment tailored to meet the diverse needs of your business.
TOUGH
Engineered for extreme durability, reliability, and resilience, JCB machinery is built to withstand harsh conditions and designed to handle the toughest tasks in the most challenging environments
EFFICIENT CONNECTED
Designed to maximize productivity while minimizing fuel consumption and downtime
With cutting-edge technology and innovative engineering, we deliver fast, reliable performance
Equipped with advanced connectivity features that enable real-time monitoring and data insights, you can track performance, optimize maintenance schedules, and enhance operational efficiency
Marape Welcomes New Australian High Commissioner McDonald
Papua New Guinea reaffirmed its strong ties with Australia as Prime Minister Hon. James Marape formally welcomed the new Australian High Commissioner, His Excellency Ewen Neil McDonald, during a courtesy call at the Office of the Prime Minister in Port Moresby.
Mr. Marape acknowledged the historic significance of McDonald’s appointment, especially as PNG prepares to celebrate 50 years of independence this year.
He extended congratulations to Australian Prime Minister Anthony Albanese and the Australian Labor Party on their recent electoral victory, noting that Australia’s Labor Government was instrumental in granting PNG independence in 1975.
“It is deeply symbolic that the Labor Government is once again leading Australia as we prepare to celebrate this historic milestone,” PM Marape said.
The Prime Minister formally invited Australia to join PNG’s 50th Independence Anniversary celebrations on 16th September 2025, marking another chapter in the enduring partnership between the two nations.
Recognizing Australia as PNG’s largest development partner, Prime Minister Marape highlighted the AU$637.4 million in Official De -
velopment Assistance allocated for 2024–2025.
He emphasized that the relationship between the two nations has grown into a strategic economic partnership, strengthened by trade, security cooperation, and peo -
ple-to-people ties.
“Our bilateral ties have broadened with the Comprehensive Strategic and Economic Partnership (CSEP 2020–2030) and the signing of the Bilateral Security Agreement (BSA 2023),” he said.
From gensets to vehicles, tyres, lubricants and more, discover the best brands and big range that tackle PNG’s toughest conditions.
And there’s only one place to go! Where else but Boroko!
Maru Welcomes Koegler, Austria Eyes Strategic Investments in PNG
By: ROSELYN EREHE
Austria has signalled a growing interest in strengthening economic ties with Papua New Guinea, focusing on high-value sectors such as green energy, forestry processing, and advanced technology.
This was revealed during a meeting between Austria’s new Ambassador, Her Excellency Elisabeth Koegler, and PNG’s Minister for International Trade and Investment, Hon. Richard Maru, on 7 May in Port Moresby.
Koegler emphasized Austria’s intention to explore investment opportunities, particularly in downstream processing of timber, as well as solar energy, hydroelectric development, and hi-tech industries.
A Central European nation with over nine million people, Austria is known for its robust, export-oriented economy and strong industrial, service, and tourism sectors.
The country has one of the world’s highest standards of living, ranking 18th globally on the Human Development Index in 2019, and benefits from its strategic location as a trade bridge between Western and Eastern Europe. With its innovative manufacturing base, Austria specializes in producing machinery, automotive components, and pharmaceuticals. Vienna, the capital, also serves as a regional financial center.
Current trade between the two nations remains modest. In 2023, PNG exported approximately US$6.3 million worth of goods to Austria, including processed fish and industrial equipment, while Austria exported US$1.66 million to PNG, consisting mainly of printed materials, machine parts, and heating systems.
Minister Maru welcomed the
dialogue, saying PNG wants to push increased foreign investment in sustainable industries.
“We want more investments in hydro and green energy, manufacturing, and the downstream processing of forestry and building materials,” he stated.
Century Peak Holdings Expands Investment Plans in PNG
Filipino conglomerate Century Peak Holdings Limited Corp. is set to make a substantial entry into Papua New Guinea, exploring major investment opportunities across multiple sectors, including rice farming, property development, manufacturing, and mining.
During a recent visit, the company’s management team met with Minister for International Trade and Investment, Hon. Richard Maru, and Mineral Resources Authority Managing Director Jerry Garry to discuss PNG’s business landscape.
Their plans include establishing a 10,000-hectare mechanized rice farm in Brown River, Central Province, positioning it as PNG’s first large-scale commercial rice farming operation.
Minister Maru emphasized the need to fast-track land title processes to enable the project’s commencement.
“The biggest holdup has been delays in securing State titles for
landowners, which is preventing the long-term lease arrangement required for the project,” he stated.
Efforts are underway with Deputy Prime Minister and Minister for Lands John Rosso to resolve these issues before September 16, aligning with PNG’s 50th Independence Anniversary.
Century Peak Holdings operates five subsidiaries in the Philippines, including ventures in nickel mining, cement manufacturing, and smelting,
and has officially established a country office in PNG. The company sees the Paga Hill Special Economic Zone as a promising site for expansion beyond agriculture.
With strong government support and collaboration with landowners and provincial authorities, the project aims to modernize PNG’s rice production, create employment, and boost economic activity in Central Province. More details are expected once agreements are finalized.
The Minister for International Trade and Investment Hon. Richard Maru welcomes Austria Ambassador Elisabeth Koegler and her team to PNG as talks of strategic investment opportunities continue.
Datec-backed PNG Technology & Innovation Summit 2025 Sets Milestone in Country’s Digital Evolution
Papua New Guinea took a bold step toward digital transformation as Datec PNG Limited successfully hosted the inaugural PNG Technology & Innovation Summit 2025 at the Stanley Hotel in Port Moresby on 27-28 March 2025.
The landmark event convened industry leaders, tech pioneers, and innovators to explore cutting-edge advancements and shape the nation’s digital future.
The summit featured thought-provoking discussions and inspiring presentations, emphasizing collaboration and technological progress as key drivers of PNG’s development.
Distinguished guests, sponsors, and partners engaged in meaningful dialogues, laying the foundation for a more connected and technologically empowered nation.
This landmark summit celebrated collaboration, technological advancement, and the shared ambition to build a smarter, more connected nation.
“We extend our heartfelt gratitude to our distinguished guests, esteemed partners, generous sponsors, and valued clients whose presence and engagement made this event an extraordinary success,” Datec said in a statement.
“Your contributions sparked meaningful dialogues that will shape PNG’s technological landscape for years to come. Together, we are forging a future defined by innovation and opportunity.”
RECOGNIZING KEY SPONSORS AND PARTNERS
The event was made possible through the generous contributions of various organizations. Hewlett-Packard Enterprise led as the Gold Sponsor, reinforcing its commitment to global innovation. Co-Sponsors Telikom, Nasfund, and Huawei played crucial roles in bringing the summit’s vision to life.
The summit also received strong support from Silver Sponsors -- Lenovo, Fortinet, and Temenos, known for their advancements in data security and financial technology. Associated Partners -- Cybernetic Global Intelligence, RDL, and CloudSigma -- contributed to progress in cybersecurity, cloud computing, and digital transformation.
Additionally, Event Partners including the National Banking Corporation, Kumul Consolidated Holdings,
FM100, EMTV, PNG For Realz, and Wisdom Group helped deliver an impactful event.
With the success of the PNG Technology & Innovation Summit 2025, Datec PNG Limited sets the stage for continued innovation, fostering a future where technological advancements drive economic and social progress across Papua New Guinea.
“The summit was a dynamic platform for thought-provoking discussions, inspiring presentations, and groundbreaking ideas, setting a bold foundation for PNG’s technological future,” Datec said.
“We are profoundly thankful to everyone who contributed to this historic milestone and are excited to continue this journey of innovation together.”
International SOS in Papua New Guinea
For more than 28 years operating in Papua New Guinea; we have been providing second-to-none medical services support for our energy and mining clients.
WE OFFER INTERNATIONAL STANDARD:
• Medical staffing
• Remote site medical clinics
• Medical supply services
• Clinic and hospital management
• Medical consulting
• Medical evacuation services
• Occupational health services
• Telehealth
• First Aid Training
• ACLS & BLS Training
PM Praises EU Partnership at Europe Day Celebration
Prime Minister Hon. James Marape has reaffirmed Papua New Guinea’s strong ties with the European Union (EU) during the Europe Day Celebration on 9 May 2025, at APEC Haus in Port Moresby.
Addressing diplomats, ministers, and development partners, Prime Minister Marape commended the EU’s long-standing support in PNG’s development.
He highlighted the EU’s contributions to education, energy, gender equality, agriculture, climate resilience, and financial governance, emphasizing their direct impact on communities, particularly in East Sepik Province.
“The European Union has been a steadfast partner. Your investment in education, agriculture, and governance is transforming communities and strengthening PNG’s capacity to grow,” Mr. Marape stated.
“Your programmes across the coun try — especially in provinces like East Sepik — are directly improving the lives of our people.”
“The European Union has been a steadfast partner. Your investment in education, energy access, agriculture, and governance is transforming communities. From climate change resilience programmes to supporting us during COVID-19, you have stood by us in good times and in moments of hardship,” he added.
The EU has allocated millions of kina toward infrastructure development, public services, and rural investments, reinforcing its commitment to inclusive progress, Mr. Marape noted.
Corporate | Business | Leisure
We always give our guests reasons for coming back
Marriott Executive Apartments Port Moresby
Marriott Executive Apartments Port Moresby, a waterfront property near the city centre, is nestled within the vibrant Harbourside South development. Featuring 88 luxury apartments with premier hotel services, it caters to both short- and long-term travellers. Guests can enjoy breathtaking ocean views and access to exclusive leisure facilities within the Harbourside Precinct.
A selection of spacious bedrooms and penthouses o ers the perfect balance of comfort, privacy, and residential-style living. Additionally, guests have access to Executive Boardrooms and indoor and outdoor event spaces on the 11th oor, boasting panoramic views of the harbour and city skyline. For tness enthusiasts, gym memberships are now available.
Update on Coral Sea Hotels
The next two years will be an exciting period of transformation as we undertake extensive renovations across six of our hotels—including ve Coral Sea-branded properties and our agship, Grand Papua Hotel. These projects are a signi cant step in rejuvenating our portfolio, ensuring an enhanced experience for our guests.
As part of our commitment to comfort, hygiene, safety, and security, we have taken a major step by embarking on SafeHotels certi cation across all our properties. Grand Papua Hotel has been awarded Premium SafeHotels status, while Gateway Hotel & Apartments received certi cation at the end of 2024. SafeHotels sets globally recognized safety, security, and hygiene standards through independent on-site assessments by industry experts. Notably, Grand Papua and Gateway are the rst hotels in all of Australasia and the Paci c Islands to achieve this certi cation - let alone Premium status.
Renovation works have began at Gateway Hotel, with Ela Beach hotel and Grand Papua hotel are set to start in quarter two of 2025, followed by The Highlander (Mt Hagen), Bird of Paradise (Goroka), and Huon Gulf Hotel (Lae) in 2026. These upgrades will introduce newly refurbished rooms and apartments, state-of-the-art meeting spaces, and exciting new food and beverage o erings, further elevating the Coral Sea Hotels experience.
Elevate your events in 2025 with Coral Sea Hotels, Grand Papua Hotel, and Marriott Executive Apartments-your premier destinations for seamless and unforgettable gatherings. Whether you're hosting a high-powered corporate function, a grand wedding celebration, or an exclusive social event, we provide the perfect combination of stunning venues, exceptional cuisine, and world-class service to bring your vision to life.
Features:
Versatile Meeting Spaces – From intimate boardrooms to grand ballrooms
Premium Comfort – Stylish seating and state-of-the-art amenities
Prime Locations – Airport, city, and beachfront venues across the country
Dynamic Breakout Spaces – Designed for collaboration and networking
Cutting-Edge Technology – Fully equipped to meet all your event needs
Award-Winning Catering – Exceptional culinary experiences tailored to your guests
Ample Parking – Hassle-free access for all attendees
Unrivalled Expertise – The most experienced and reliable venue management team in PNG
Let us transform your event into an extraordinary experience—where every detail is meticulously planned and well executed.
DoWH Updates on New Southern Corridor Road Links, Hiritano Highway
By: ROSELYN EREHE
The Department of Works and Highways has gone ahead to execute the Connect Papua New Guinea Project, reaffirming the Marape-Rosso government’s commitment to connect the country by main highways and to bring services and opportunities to the rural populace.
Prime Minister Hon. James Marape emphasized that the new roads will serve as crucial links to markets in the National Capital District (NCD) and even overseas, urging the people to prepare to work their land productively.
The official Ground Breaking Ceremony for the Southern Corridor, officiated by Prime Minister Marape at Bereina Station, was co-hosted by Minister for Works and Highways Hon. Solan Mirisim, MP and Member for Telefomin. Vice Minister for Works and Highways Hon. Peter Isoaimo, MP and Member for Kairuku was also present on April 23.
High-ranking government officials were also present -- the Minister for Planning Hon. Sir Ano Pala, MP and Member for Rigo; Minister for Provincial Affairs and LLG Hon. Soroi Eoe, MP and Member for Kikori; Minister for Livestock Hon. Seki Agisa, MP and Member for Middle Fly; and Minister for Energy Hon. Thomas Opa, MP and Member for Kerema.
Central Governor Madam Rufina Peter, MP, and Gulf Governor Sir Chris Haiveta, MP, were also present.
Key contract awards for the Southern Corridor development along the Hiritano Highway are as follows:
1. Bereina to Apanaipi - A K78 Million contract awarded to Dekenai Construction Ltd.
2. Apanaipi to Malalaua - A K112 Million contract awarded to China Wu Yi Limited.
3. Laloki to Brown River - A K148 Million contract awarded to Hebou Construction Limited.
REDEVELOPMENT OF ROUTE
600: HIRITANO HIGHWAY
These announcements come on the back of another development, the
Redevelopment of Route 600.
This is a massive road project undertaken after a 30-year maintenance drought along this important highway, linking Gulf Provincial capital Kerema town with Central Province and Port Moresby.
The Hiritano Highway is notably listed as highway number 001 out of the 16 national highways in PNG, according to the Works Road Asset Management records.
PM Marape led the groundbreaking for this redevelopment on April 17 at Bereina Station in the Kairuku District of Central Province. Both Gulf Governor Hon. Sir Chris Haiveta and Central Governor Hon. Rufina Peter were also present to support the initiative.
Department of Works and Highways Secretary Mr. Gibson Ali Holemba, in his introductory remarks, confirmed the two new major road maintenance contracts:
• Bereina to Apanaipi awarded to Dekenai Construction Ltd for K78 Million.
• Apanaipi to Malalaua awarded to China Wu Yi Limited for K112 Million.
Mr. Holemba also said the Laloki to Brown River contract, valued at K148 Million and awarded to
Hebou Construction Limited, had been awarded earlier but is currently subject to a court battle.
The project forms part of the government’s broader Connect PNG initiative, aimed at achieving economic independence through substantial investments in critical infrastructure.
By empowering local contractors with projects ranging from K50 million to K300 million, the government has turned small and medium enterprises (SMEs) into multimillion-dollar entities, thus fostering economic growth, resilience, and creating thousands of jobs.
The Hiritano Highway aims to connect communities, stimulate trade, and unlock the economic potential of underdeveloped regions.
As the northern region increasingly connects with the southern region, the government anticipates a rise in vehicle movement, cargo transportation, and a boost in business and trade opportunities.
The Hiritano Highway redevelopment sets a foundational pace as the nation looks forward to the connection of Lae (Morobe Province) to Kerema (Gulf Province) through the Trans–National Highway, anticipated to be completed by September this year.
EastWest Transport, PNG Customs sign MOI
The PNG Customs Service and EastWest Transport (EWT) have signed a Memorandum of Intent (MOI) for the trial implementation of the Trusted Trader Program (TTP) marking a significant step towards securing, streamlining and facilitating legitimate trade in PNG.
The MOI was signed at the PNG Customs Headquarters by Customs Chief Commissioner David Towe and EWT General Manager Nicholas Bury, enabling EWT to become the third freight forwarder to participate in the program in PNG.
The TTP, also known as the Authorized Economic Operator (AEO) program, has become a flagship Customs-Business partnership in many countries around the world and is a key initiative under the World Customs Organization’s (WCO) SAFE Framework of Standards, which outlines standards for securing and facilitating global trade.
Under the program, businesses become recognized as trusted traders by Customs administrations around the world after meeting specific security and compliance standards. Trusted traders typically receive benefits like expedited Customs clearance, reduced inspections and other preferential treatment.
“This program is designed to optimize trade security while allowing for seamless movement of goods across borders, thereby minimizing Customs intervention,” Chief Commissioner David Towe stated. “Increased Customs intervention at the border raises the cost of doing business, thus, this program aims to secure trade, reduce Customs intervention, and lower business costs.
“Given the rising cost of goods and services, Customs is seeking ways to alleviate such burdens,” the Chief Commissioner added.
The Chief Commissioner said EWT is the third freight forwarder in PNG to participate in the trial program highlighting the importance of public-private partnership in streamlining trade processes. The other two freight forwarders are Express Freight Management and Lae Inland Logistics.
“The journey began in October of 2023 when EWT expressed its’ interest in joining the program,”
Customs Assistant Commissioner Compliance and Procedures Roselyn Tei stated. “Following the request, PNG Customs conducted multiple internal compliance assessments and site validations to ensure EWT’s security standards were in compliance with the WCO’s SAFE Framework of Standards.”
“We appreciate EWT’s commitment, and the efforts and resources put together to meet our requests and security requirements,” the Assistant Commissioner added.
EWT General Manager Nicholas
Bury expressed gratitude for the opportunity to join the trial program and emphasized the importance of collaboration between businesses and Government.
“While working in PNG over the years I have witnessed increased engagement with the Customs team and everything said here today has resonated with me,” Mr. Bury said. “We are strong believers in working together to deliver efficient and cost-effective services to PNG companies and consumers.”
He added that EWT has made significant investments to align with the program’s requirements and is committed to passing on the resulting cost savings to the end consumer.
“In a time of increasing cost, programs like this will make a huge difference”, he said.
EWT and PNG Customs are eager to continue working together as Customs progress and finalize the legal framework of this program.
Following the engagement of the third freight forwarder under the TTP program, the next plan for PNG Customs is to bring onboard importers and exporters.
< Page 36
A highlight of the groundbreaking ceremony was the emphasis on the K300-million investment into the rehabilitation of the Hiritano Highway and a strong call to action for roadside communities and the people of Gulf and Central provinces.
Prime Minister Marape encouraged citizens to mobilize their land, register it for commercial agriculture,
tourism, and business activities, and to avoid complacency. He stressed the importance of working the vast lands to earn a living and participate actively in the country’s economic growth.
MAGI HIGHWAY MISSING LINK ROAD
Meanwhile, the Magi Highway Missing Link Road was officially opened on April 15, connecting Central and Milne Bay Provinces -- realizing a
vision that dates back more than 50 years since the country gained independence.
The road is expected to transform landlocked areas into agricultural and tourism hotspots, supporting the government’s vision of elevating the nation into a middle-income country.
The Department of Works and Highways, through these projects, continues to ensure that the benefits of infrastructure reach every corner of PNG.
PNG Proposes Comprehensive Economic Pact to Japan
For the first time in 50 years, Papua New Guinea is pushing for a Comprehensive Economic Partnership Agreement (CEPA) with Japan, aiming to deepen trade and investment ties between the two nations.
During a formal meeting in Tokyo, Minister for International Trade and Investment Hon. Richard Maru conveyed PNG’s commitment to forging a new era of partnership with Japanese Minister for Economy, Trade, and Industry Hon. Koga Yuichiro.
Minister Maru highlighted Japan’s role as PNG’s biggest export market, with US$4 billion worth of goods flowing into Japan annually, compared to US$250 million in imports from Japan.
He emphasized the untapped potential for increased investment and trade flows, stating, “It’s time to reset our relationship and anchor it through a formal trade agreement.”
Minister Yuichiro welcomed the proposal but noted that key trade issues must be addressed, including direct flights between PNG and Japan,
visa-on-arrival arrangements for Japanese travelers, and duty-free market access for Japanese goods in PNG.
He requested PNG to draft a framework for CEPA, signalling Japan’s willingness to move forward.
The LNG sector was a focal point, with PNG currently supplying 6% of Japan’s energy needs but holding only a 5% stake in PNG’s LNG projects.
Minister Maru urged Japanese companies to take a larger ownership stake, fostering stronger investment in PNG’s mining, petroleum, and industrial sectors.
With CEPA negotiations expected to begin this year, PNG seeks to leverage its longstanding relationship with Japan to boost its economy, strengthen trade, and drive sustainable development.
“Our country has benefited very immensely from Japan through scholarships and development aid through organizations like Japan International Cooperation Agency (JICA) and Japan Bank for International Cooperation (JBIC),” Mr. Maru stated.
“The most recent examples are the Tomodachi International Airport at Nadzab in Lae, Morobe Province, and three weeks ago JBIC announced a loan of K1.8 billion US Dollars to bankroll the funding the Papua LNG Project.”
“During our disasters, Japan has always been one of the first countries to come to our aid. I want to express to your Government and your country our heartfelt gratitude for such enduring, warm and lasting relationship that has evolved over the last 50 years,” he told Minister Yuichiro.
+675 72100645
www.aginvestmentpng.com
Port Moresby, Papua New Guinea
Powering Papua New Guinea’s Future, AG Energy Limited - The Technical Force Behind AG Investment Ltd.
As the specialized t echnical arm of AG Investment Ltd, AG Energy Limited playsa a pivotal role in delivering high-impact infrastructure and energy solutions across Papua New Guinea. From hydropower to civil works, we bring engineering precision and local expertise to every project.
Subcontractor to landmark developments like the Edevu Hydro
Power Plant
Over 200 local jobs created annually
Driving sustainable progress through technical excellence
Together with our parent company, we’re not just building infrastructure- we’re building opportunity.
NAVIGATING 50 YEARS OF SUCCESS
CONNECTIVIT Y ACROSS PNG
Weekly Sailings
Liner Shipping
Lea , Por t Moresby, Kiunga, Madang, Rabaul
1 0-day Sailings
K i mbe , L orengau
Weekly Sailings
Project Charters Cargo Consolidation
Door-to-Door Delivery
For half a century, Consor t has proudly supported a diverse range of clients across Papua New Guinea’s energy and resources, construction, wholesale and transport sectors
As PNG’s leading coastal shipping provider, we remain committed to delivering consistent and reliable services to all our customers
Fortnightly Sailings
L ae, Por t Moresby,
Lorengau, Madang, Rabaul
Aoltau, Buka, Kavieng, Kieta, Oro Bay, Vanimo, Wewak
10-day Sailings Kimbe, Kiunga
Li ner Shipping
For tnightly Sailings
Door-to-Door Delivery
Alotau, Buka, Kavieng, Kieta, Oro Bay, Vanimo, Wewak
Project Charters Cargo Consolidation
O ur Services | |
Kieta
PNG CORE Supports Global Call to End Plastic
Under the global theme “Ending Plastic Pollution, Globally,” the PNG Chamber of Resources and Energy (PNG CORE) joined the Conservation and Environment Protection Authority (CEPA), international development partners, and key stakeholders at APEC Haus to mark World Environment Day.
Hosted by CEPA, Santos and ExxonMobil PNG were part of entities supporting the event, which event rallied under the urgent global call to “Beat Plastic Pollution.”
“The message was clear, addressing plastic pollution demands urgent awareness, collective action, and shared responsibility—from individuals to industries,” the Chamber said in a statement.
“PNG CORE stands firmly behind this call, recognising that environmental stewardship is not just a duty, but a legacy we are committed to protect.”
It also welcomed the news that CEPA is working on putting in place a Waste Management Policy, and looks forward to working with CEPA on matters relat-
ed to prudent waste management.
“As custodians of 7 per cent of the world’s biodiversity, Papua New Guinea plays a vital role in global conservation,” the Chamber said.
“From the misty highlands to the coral-rich Bismarck Sea, PNG is home to extraordinary species such as the Queen Alexandra Birdwing—the world’s largest butterfly— and the only known poisonous birds. These ecosystems are not only biologically rich but are deeply woven into our identity, culture, and future.”
PNG CORE Chief Operating Officer, Mrs. Pansy Taueni-Sialis, reaffirmed the Chamber’s commitment to sustainable development across the resources and energy sector and beyond.
“Our actions are aligned with the United Nations Sustainable Development Goals (SDGs) and global Environmental, Social, and Governance (ESG) standards. We believe that responsible resource development and environmental protection must go hand in hand,” said Mrs. Taueni-Sialis.
“Across the country, PNG CORE
members are taking bold, practical steps to protect the environment:
• Ok Tedi Mining Ltd – Restoring ecosystems through advanced land rehabilitation and sediment control.
• K92 Mining Ltd – Supporting national reforestation through nursery programs and community tree planting.
• Santos – Reducing ecological impact through sustainable water reinjection practices.
• ExxonMobil PNG – Partnering with communities to co-develop conservation plans, including the Lake Kutubu Wildlife Management Area.
“These initiatives reflect a sector-wide commitment to environmental leadership and the protection of PNG’s irreplaceable natural heritage,” she said.
“On World Environment Day—and every day—PNG CORE stands as a partner in conservation, innovation, and responsible development. Our pledge to ‘Beat Plastic Pollution’ is a call to action for every citizen and every sector. Protecting our environment is protecting our future.”
SMARTER ICT. STRONGER BUSINESS.
From cloud to connectivity, Daltron is your ICT Solutions partner delivering end-to-end services that reduce costs, boost efficiency, and scale with your business.
Whether you’re a growing SME or an enterprise operation, Daltron provides tailored technology solutions that drive real outcomes. From managed IT services and cloud infrastructure to hardware supply, cybersecurity, and business-grade connectivity, we make your ICT smarter—so your business can do more with less.
With nationwide support and decades of local expertise, Daltron is your ICT partner in Papua New Guinea and beyond.
PNG Ports Sets Major Upgrade Program
PNG Ports Corporation Ltd (PNG Ports), which owns and operates 15 ports across Papua New Guinea, is advancing a major port upgrade program set to transform the nation’s maritime infrastructure.
Supported by a combination of international donor funding and internal investment, the decade-long initiative will deliver critical improvements to six ports.
Works range from essential dredging and pile replacements at smaller ports to a proposed 240-metre wharf extension at Lae—the country’s busiest international port—as part of its transformation into a key regional transhipment hub.
PNG Ports’ commitment to port modernisation began well before the launch of its current upgrade program.
New domestic and international terminals were built at Port Moresby’s Motukea maritime precinct between 2015 to 2018 and a raft of critical infrastructure improvements have been introduced at Lae Port since 2012.
These have included a new tidal basin, wharf, terminal yard, and most recently, the 45-hectare Lae Industrial Park.
The development of new port infrastructure in PNG’s two largest cities paved the way for a partnership between PNG Ports and international terminal operator ICTSI, resulting in significant efficiency improvements.
According to the World Bank’s 2023 Container Port Performance Index, Lae and Port Moresby outperformed several major regional ports—including Melbourne, Sydney, Brisbane, Auckland, and Napier.
The current port upgrade programme targets the ports of Daru, Kavieng, Kimbe, Lae, Oro Bay, and Rabaul – with a parallel programme of improvements and maintenance for the ports of Lorengau, Vanimo and Wewak.
PNG Ports is partnering with the European Union (EU), the Agence Française de Développement (AFD), and the European Investment Bank (EIB), to upgrade the port at Rabaul, an increasingly popular cruise tourism destination.
However, by far the most significant funding partner of
the programme is the Australian Government through its Australia Infrastructure Financing Facility for the Pacific (AIFFP).
The AIFFP will help fund the upgrades to Daru, Kavieng, Kimbe, and Oro Bay ports, as well as the potentially 240 metre extension of the international wharf in Lae, part of the Lae Tidal Basin development project.
The AIFFP’s A$621.4 million investment comprises a loan of A$521.4 million and grant of A$100 million.
PNG Ports Chair, Harvey Nii, reports that the initial plan was for the AIFFP to fund both the marine and land packages of the port upgrades.
However, he explains that “significant construction cost increases globally in combination with PNG Ports’ desire to minimise debt has resulted in PNG Ports electing to selffund most of the land packages and undertake them at a later date when it is more economically viable to do so.”
Instead, PNG Ports is prioritising the critical and more expensive marine infrastructure of its ports over the land works.
Nii explains that “our focus is on first providing PNG with proper wharfs, jetties, quays, ramps and berths before investing in new buildings and roads etcetera. It is the actual marine infrastructure that will help drive PNG’s future growth and prosperity, thus it needs to be built now.”
The wharf at Lae’s international terminal is a piece of PNG’s most significant marine infrastructure. Initial plans were for it to be extended by 150 metres. However, another 90
metres is being proposed in line with the vision to transform Lae into a regional transhipment hub.
As PNG’s manufacturing heartland and a gateway to major resource projects, Lae is strategically positioned near key shipping routes between Asia and Australia. The port also benefits from its immediate proximity to the newly developed 45-hectare Lae Industrial Park.
Nii describes prioritising the expansion of the Lae wharf as “a financially responsible and strategically astute investment in that it will generate substantial amounts of new business for Lae Port and consequently enhance PNG Ports’ profitability.”
“Vessels are getting larger, and there is a growing trend amongst the world’s major shippers to utilise ‘hub and spoke’ type arrangements such as what we’re working towards in Lae” explains Nii.
“Early this year we saw the largest container vessel to ever visit PNG utilise our Lae facility efficiently and safely. We know that with PNG’s growth and the continued expansion of global shipping that much larger vessels will call into Lae if we have the right transhipment infrastructure in place.”
No doubt, the transformation of Lae into a transhipment hub will bring significant economic benefit to PNG’s second largest city, as well as to the developing nation itself. Minister for State Enterprises, and responsible for PNG Ports, Hon William Duma, describes PNG Ports’ programme of port upgrades, and in particular Lae’s ambitious wharf
Strategically positioned near key shipping routes between Asia and Australia, Lae Port is set for a major wharf extension to support its transformation into a regional transhipment hub.
Business Training
Business Assessment Services
Business Advisory & Mentoring
Workshops, Seminars & Events
Project Information Center
Supplier Management Portal
ISO 9001:2015 - QMS Training, Audit and Certification
extension as “forward thinking” and “nation building.”
Engineering work for the Lae wharf extension and all other port upgrades is being done to Australian and New Zealand standards.
With PNG’s 50th anniversary of independence in September this year, Duma’s confidence is well placed when he says that “the people of PNG can be confident that the port infrastructure upgraded today will still be benefitting our nation in 50 years’ time when we celebrate our 100th anniversary.”
VARIOUS STAGES OF DEVELOPMENT
The six ports included in PNG Ports’ upgrade program are at varying stages of early development, ranging from initial scoping to contract awarding. Among them, the Kimbe Port project is currently the most advanced.
Kimbe Port, PNG’s third most profitable port, plays a vital role in the country’s palm oil exports.
Earlier this year, the marine works contract—which includes demolishing the existing wharf and constructing a larger replacement—was awarded to North Queensland-based Pacific Marine Group (PMG), with mobilisation expected in the early second half of the year.
In May, the landside works contract, covering infrastructure such as buildings and roads, was awarded to PNG firm Global Constructions. The full project is scheduled for completion by the end of 2026.
Both construction contracts for Kimbe Port include strict local content requirements, mandating the use of local contractors, businesses, and workers to ensure economic benefits flow directly to the surrounding community.
This approach aligns with PNG’s broader commitment to establishing a National Content Policy—not only for major resource projects, but for all significant economic activities that drive national development.
Nii reports that all contracts for construction works at the other ports being upgraded will include similar local content requirements.
Although contracts for other ports have not yet been awarded, the tendering process is underway and
construction of the Daru, Kavieng, Oro Bay and Rabaul ports, including the relocation of Kavieng port to enable its expansion and maximise its commercial potential, is expected to commence in 2026.
In the meantime, PNG Ports continues with a comprehensive programme of stakeholder engagement that is particularly essential when undertaking major infrastructure projects in PNG.
Indeed, Nii explains that PNG Ports’ investment in stakeholder engagement is one of the reasons that the port upgrade programme has continued to progress so well, despite
cost increases and the associated project rescoping.
“Consulting with footprint communities, businesses, local government, civil society etcetera is something PNG Ports excels at, and this has been acknowledged by our donor partners,” he said.
“In short, whilst our team has been learning about some of the more technical aspects of wharf engineering, so too have we been transferring knowledge to our donor partners on the of stakeholder engagement process and its many nuances when undertaking
ABOUT US
Since 2002, Digitec has been at the forefont of delivering secured data center solutions and ICT services, partnering with globally renowned technology brands to bring cutting-edge innovations to businesses throughout PNG.
Technology for a more connected world
“Simplifying Innovative ICT Solutions”
OUR SERVICES
Professional Services
We design and implement robust ICT architectures.
Data Centre Services
Digitec Datacentre is located in Gordons, Port Moresby and is monitored 24 X 7 via CCTV and environmental ‘Monitoring tools’
ISP Services
With highly skilled and competent workforce. Digitec offers holistic, end-to-end ICT business solutions tailored to meet the evolving needs of our clients. As a trusted ICT partner, we are committed to delivering breakthrough technologies and best-in-class services hat empower organizations, enhanced operational efficiency, and drive digital transformation.
ISO 9001:2015 | ISO 20000-1:2018 | ISO 27001-1:2022
OUR PARTNERS
Our ISP services ensure an engaging online presence for your business.
Managed IT Services
Our Managed IT Services ensure that your business operates smoothly and efficiently.
Cloud Solution
Our reliable and secure Cloud Solution services help you meet your business.
Managed Print Services
Our Managed Print Services (MPS) are designed to optimize your print environment.
DoWH, DLPP Sign MoU for Road Projects
By: ROSELYN EREHE
The Department of Works and Highways (DoWH) and the Department of Lands and Physical Planning (DLPP) officially signed a Memorandum of Understanding (MoU) on Tuesday, 3 June, aimed at resolving long-standing land acquisition challenges that have delayed road projects nationwide.
The MoU is anchored in national legal instruments including the Constitution of Papua New Guinea, the Land Act 1996, the Physical Planning Act 1989, and other related legislation governing land ownership, use, and development.
The ceremony took place at the Grand Papua Hotel’s Markham Conference Room, with key officials, stakeholders, and staff from both departments in attendance.
The memorandum seeks to establish a formal framework for collaboration, aligning their efforts to improve governance, reduce delays, and eliminate fraudulent land compensation claims that previously cost the State millions of kina.
Secretary for Works and Highways, Gibson Holemba, described the MoU as “a significant milestone in inter-agency collaboration and is a step forward in addressing the delays and challenges often encountered in road project implementation due to land acquisition issues.”
“It reflects a shared commitment to effective governance, accountability, and sustainable development,” he added.
Mr. Holemba acknowledged the role played by the DoWH’s Environmental and Social Safeguard Branch, led by Assistant Secretary Kenneth Yamu, in facilitating the drafting and finalisation of the MoU.
Infrastructure, particularly road development, is a major enabler of economic growth and social development in PNG, the Secretary noted. However, the complex processes associated with land acquisition, especially those involving customary landowners,
have posed a significant barrier to progress.
Recognising these challenges, the DoWH and DLPP jointly agreed to streamline critical procedures related to land acquisition, compensation, and compliance with legal requirements.
“This MoU is a foundational step to ensuring that development of critical road infrastructure is not hampered by land acquisition delays and unnecessary fraudulent land compensation payments which has become an industry of its own, causing the state to lose millions of kina in the past years,” Mr. Holemba said.
The agreement will help prevent bogus claims by individuals pretending to be customary landowners and enhance transparency, efficiency, and public confidence in government-led road development initiatives, he added.
The MoU outlines the shared responsibilities between the departments across key areas:
• Land acquisition processes, using both voluntary and compulsory mechanisms;
• Valuation and compensation in accordance with legal frameworks;
• Surveying, mapping, and docu -
mentation of land transactions;
• Stakeholder engagement with customary landowners;
• Legal and regulatory compliance relating to land matters in PNG.
From the DLPP’s side, the department will lead efforts in land acquisition, stakeholder consultation, compensation assessments, legal compliance, and documentation.
Meanwhile, the DoWH will provide technical specifications, budget allocations for land-related matters, and ensure road designs align with land acquired.
Joint responsibilities will include coordinated planning, data sharing, dispute resolution, and conducting regular reviews of progress under the MoU.
“The understanding signed today will strengthen the governance process at the inter-agency level to resolve delays and prevent bogus land acquisition payments,” Mr. Holemba said.
“The outcome of the MoU is to enhance coordination between DoWH and DLPP to ensure there is more efficiency, accountability, transparency, and improved stakeholders’ confidence in government-led road development project initiatives,” he stated.
PNG Launches 2nd SEZ Summit with Anchor Sponsors
By: ROSELYN EREHE
The government has officially launched the 2nd Papua New Guinea Special Economic Zones Summit that will be hosted at the Hilton Hotel in Port Moresby from 31 August to 3 September 2025.
“This summit will be like no other. It will be the most useful and productive in our nation’s history. It will redirect the course of our nation,” Hon. Richard Maru, the Minister for International Trade and Investment, said during the launch of the Summit at Apec Haus on 2 June in Port Moresby.
During the launch, the seven anchor sponsors pledged their support for the 2nd PNG SEZ Summit --Teachers Savings and Loan Society (TISA), Kumul Petroleum Holdings Limited, Kumul Minerals Holdings Limited, Paga Hill Estate, Air Niugini, Special Economic Zone Authority, and the Department of National Planning and Monitoring.
Minister Maru thanked the foundation sponsors for coming on board to support the Summit as Gold Sponsors at the cost of K200,000 each.
The 2nd PNG SEZ Summit will be hosted by the Movement as part of the Celebrations, under the theme “Reflecting on Our Past 50 Years and Charting the Next 50 Years.” This will be preceded by the launch of the PNG SEZ Foundation Policy on Sunday, 15 June 2025.
Hon. Maru said the Summit will let PNG “take stock of our journey in the last 50 years in terms of economic development to know, why we are where we are now.”
“Why do we have problems like THE highest unemployment, highest law-and-order problems, serious foreign currency issues, national debt of over K60 billion, and depreciating Kina value? The biggest single issue is that we have failed to grow our economy over the last 50 years,” he said.
“This is glaringly obvious when you compare us to other countries like Japan, New Zealand and the Philippines, who are smaller than us in terms of land size and have no resource endowments like us yet on average their economies are ten times
bigger than ours.”
“Singapore went from a mangrove fishing nation to now a first world economy in 30 years with a GDP of over US$501 billion, and Japan went from a war-ravaged nation to now a robust economy with its GDP sitting at over US$4 trillion.”
“We must learn from them and deploy the right strategies and policies. We will do an honest comprehensive review of our economic performance over last 50 years during this Summit so we can re-strategize in terms of our core economic policies to take PNG out of the situation that we are now in and to secure economic independence. This is in line with the 20-year roadmap that is being put together as announced by the Prime Minister,” he added.
Minister Maru said that since the first SEZ Summit in May 2023, the government has engaged with regional and global stakeholders -- SEZ developers, operators, and users -- to refine the policy framework.
“We are now ready to launch the SEZ Foundation Policy and to have
SEZ Summit 2. The long-standing support of the anchor sponsors assisted us to get this agenda of the current Marape-Rosso Government being promoted throughout Papua New Guinea and particularly in the Asia and Pacific region,” he said.
While acknowledging that the population has grown fivefold, from 2 million to 10 million, Maru said the economy has not kept pace.
“Symptoms like unemployment, law and order issues, and foreign exchange shortages are the result of our failure to build a robust economy. We can’t keep doing things the same way and expect different results,” he said.
The summit will bring together global and local experts to analyze PNG’s economic trajectory and compare it with better-performing nations, including Singapore, Indonesia, and post-genocide African economies.
The summit will also serve as a forum to develop the nation’s next 20-year economic development plan, a process currently chaired by former Deputy Prime Minister and Treasurer Charles Abel.
Top photo: Minister for International Trade and Investment Hon. Richard Maru flanked by the anchor sponsors of the 2nd PNG SEZ Summit at the launch on June 2nd in Port Moresby, APEC HAUS. - image supplied Gregory Pulpulis
Left photo: The Minister for International Trade and Investment Hon Richard Maru giving his keynote speech during the launch of the 2nd PNG SEZ Summit to be hosted at Hilton, Port Moresby from August 31stSeptember 2rd. - image supplied Gregory Pulpulis
Right photo: Kumul Petroleum Holdings Limited Managing Director Wapu Sonk reiterated support for the 2nd PNG SEZ Summit as done for the 1st Summit previously.
