Port Moresby, Papua New Guinea | Tuesday, 12 March 2025 — In a historic move to strengthen governance of Papua New Guinea’s critical petroleum sector, Parliament has unanimously passed two pivotal pieces of legislation to establish the National Petroleum Authority (NPA), marking a significant shift in the country’s resource management framework.
The National Petroleum Bill 2025, which received an overwhelming vote of 84-0, alongside the Oil and Gas Act Amendment Bill 2025, passed by voice vote, will transfer regulatory responsibilities from the Department of Petroleum and Energy to the newly created NPA. This autonomous body will be tasked with licensing, administration, oversight, and regulation of all petroleum and gas operations within PNG’s jurisdiction.
Modernizing Regulatory Framework for a Growing Sector
The existing Oil and Gas Act, enacted in 1998, provided the foundation for PNG’s oil and gas governance for over two decades. However, with rapid industry growth, increased exploration and production activities, and evolving global energy dynamics, the government identified the urgent need to update its legislative and regulatory architecture.
Prime Minister Hon. James Marape emphasized that the new laws introduce a modernized and streamlined framework, designed specifically for Papua New Guinea’s unique context. “Our sector has matured substantially since 1998, and our laws must keep pace. The National Petroleum Authority will serve as a dedicated regulator with the capacity and mandate to manage complex petroleum operations effectively and transparently,” he said.
Ensuring Balanced Interests of the State and Investors
The legislation enshrines a hybrid production-sharing framework tailored to PNG’s needs, clarifying the government’s fiscal entitlements, including taxes, royalties, levies, and equity stakes, while safeguarding the legitimate interests of investors. This clarity is expected to boost investor confidence by providing a transparent and stable regulatory environment.
Prime Minister Marape reassured the industry that the reforms are intended to strengthen—not undermine—investor relations. “We value our petroleum investors who contribute significantly to PNG’s economy. The new authority will foster a partnership built on trust, accountability, and shared prosperity,” he noted.
Institutional and Economic Impact
The NPA’s establishment is projected to enhance regulatory efficiency, reduce bureaucratic delays, and improve monitoring and enforcement of environmental and safety standards. It will also play a critical role in facilitating community engagement and ensuring resource benefits reach local populations, contributing to sustainable development.
Moreover, the move aligns with the government’s broader vision of economic transformation, leveraging PNG’s natural resources to generate long-term revenue streams that support national development goals, including infrastructure, education, and healthcare.
Implementation Timeline and Outlook
The National Petroleum Authority will be officially established between 16 September 2025 and 15 September 2026, coinciding with PNG’s 50th anniversary of independence. This symbolic timing underscores the government’s commitment to positioning the petroleum sector as a pillar of the country’s future prosperity.
Government agencies, industry stakeholders, and development partners will collaborate closely during the transition to ensure a smooth handover of responsibilities and continuity of operations.
Looking Ahead
The passage of the National Petroleum Bill 2025 and the Oil and Gas Act Amendment Bill marks a new chapter in Papua New Guinea’s management of its oil and gas wealth. By instituting a robust, transparent, and locally tailored regulatory authority, PNG aims to attract further responsible investment, maximize resource benefits, and contribute decisively to the country’s sustainable economic growth.
Prime Minister Marape concluded, “This is a defining moment for our country’s energy sector. With these reforms, we lay the foundation for a more prosperous Papua New Guinea that harnesses its resources wisely, equitably, and sustainably for the benefit of all our people.”