Department expected to collect K44mil, says secretary

The National Business

THE Petroleum and Energy Department is expected to collect more than K44 million for the Government this year, says secretary David Manau.
He said this should prove that the department could also generate revenue for the country.
Manau yesterday took over the position from acting secretary Lohial Nuau in Port Moresby.
“In 2020, the department will collect an estimated K44.950 million,” he said.
“We have (worked) out outstanding revenues owed to the State over several years in our internal work plan compilation (last month).”
The breakup of the estimated revenue to be collected is:

  • Licence compliance: K28.860 million (from all active licences);
  • Licence penalties: K14.590 million (annual rentals not paid over several years); and,
  • Archives and data: K1.5 million – estimated revenue for 2020.

“Many licences have not paid their dues over several years,” Manau said.
“The department has undertaken a major review of all licences operating in the country.
“We have completed reviews on petroleum prospecting licenses (PPLs), petroleum retention licenses (PRLs), pipeline licenses (PLs), petroleum processing facility licenses (PPFLs) and petroleum development license (PDLs).
“We have identified many breaches and defaulters which the minister will be advised accordingly.
“The objective of the review was to establish which license holders are compliant and which are non-compliant on the conditions under which they operate pursuant to their licences.
“The petroleum advisory board will review these licenses and make recommendations.”