Better Regulatory Mechanism Needed For Pasca

Co-operation between all stake­holders to put in place a better fiscal and regulatory mechanism for the the petroleum and mining industry, and the economy as a whole, is needed.

Papua New Guinea Extractive Indus­try Transparency Initiative (PNGEITI) head of national secretariat Lucas Alkan said the country’s first off-shore gas project, the K1 billion Pasca Gas Field in Gulf, is set for first drilling in 2020.

Mr Alkan said changes in technology and the way people do business today are so swift, and the petroleum and mining industry have their own challenges and opportunities.

He said the country is in a very unique position to be a model country to set standards that other miners and explorers around the world can learn from. “The Solwara 1 Project in New Ireland and the Pasca projects are case in point,” Mr Alkan said.

“We are of the view that the industry and the Government are living up to meeting immediate obligations and this must be further be strengthened to see better outcomes,” Mr Alkan said.

“If there needs to be finer tunning to certain legislations and policies, the timing is now right to make things happen. He said PNGEITI believes that with the offshore gas project in the Gulf province, the Department of Petroleum and Energy is on top of this in terms of policy and legislations to cater for this development.

“We hope to see better outcomes from negotiations and discussions around setting up better fiscal and regulatory frameworks to lay solid foundations for similar projects in future.

“We have world class technical expertise to make PNG a model mining and petroleum country that strictly upholds global best practices, whether it be in transparency or the overall approach taken in administering and regulating business in the mining and petroleum space.

“There is a whole scheme of things we need to harmonize before the economy and the investors’ alike can enjoy the benefits of PNG’s resource.

“We at PNGEITI always stand ready to do our bit to promote accountability and transparency in the industry.”

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