In today's Petroleum Seminar in the nation's capital, Minister for Petroleum & Energy, William Duma, gave a progress update on the setup of the new Mining & Petroleum Authority.
With an aim to effectively manage and regulate the country’s energy resources, the new Mining & Petroleum Authority is expected to be fully operational by 2015.
The minister said the Mining and Petroleum Authority will replace the current Department of Mining & Petroleum.
The intention is to make the new entity a more robust and efficient regulator of Papua New Guinea’s energy sector, in particular the hydrocarbon sector.
Mr. Duma said the State Solicitor has approved and provided the Certificate of Necessity that’s now paved the way for the government to approve the establishment of the Authority.
“This initiative of the O’Neill government reflects the government’s efforts to embrace and recognize the massive foreign investment in our country’s petroleum and renewable energy sectors.”
Once established, the Authority will have its own Minister as its political head. Under the political head will come the Board of Directors and the Chairman of the Authority, who will govern overall operations. The Petroleum & Energy Advisory Council will oversee regulations and policy affairs and the Managing Director will run administration and operational functions.
Minister Duma said the draft legislation will be widely circulated to the industry to ensure objective feedback.
The Ministry and Department have approved a work program which will commence early next year. Mr. Duma said the establishment of the Authority is to increase the country’s international investor confidence. The new Authority is expected to be in full operation by 2015.