Exercise expensive: Kua

The National Business

By DALE LUMA
IT will be a very expensive exercise for the National Gas Corporation Ltd (NGCL) to participate meaningfully in resources projects, says Petroleum and Energy Minister Kerenga Kua.
In an interview with The National yesterday, Kua said resource projects were very expensive in nature and in order for NGCL to be fully operational, certain mechanisms needed to be in place.
He said the Oil and Gas Act 1998 contained provisions for NGCL to represent provincial governments in resource projects through the payment of shares if they (provincial governments) chose to, but that had not been happening.
“It’s a real pity that when people first wrote up the 1998 Oil and Gas Act, they did not set up any provision for how the NGC was to acquire interests in the resource projects,” he said.
“So the only mechanism for them was to pay their own way into the projects which seemed to be the only way.
“The intention for NGCL is good but in order for it to work meaningfully, there is got to be other mechanisms provided other than just expecting provincial governments to contribute out of their pocket.
“If everybody (provinces) contribute K1 million each, that will add up to K21 million which is hardly worth anything in the oil and gas environment because the money needed in that kind of business is in the billions.”
Kua said it would be challenging for the company to raise money to buy interests in projects: “Which is how the legislation is designed to enable them to which is going to be very hard in practical terms.”
The Manus provincial government last week was the first to present its K1 million subscription payment to NGCL.

6 comments

  • If there is a vaccum then amend the legislation to cater for that.
    It’s your role as an MP and lawmaker.

  • Reap the act and create a new one. It’s made/written by men and so it shall be destroyed and created again. What’s so impossible?

    Concerned citizen

  • The government has the mandatory responsibility to protect its people and resources. Documents on programs and projects created in the past are subject to review – this should be a normal practice to enable the government in consultation with resource developers to allow for incremental changes where necessary in the spirit of fairness and changing times

  • All Members of Parliament are our Reps, you are our Legislators. For too long we are adopting Colonial Laws which PNG as an Independent State, Please Legislate
    New Oil and Gas, Gold, Copper, what ever is in the best interest of our People
    And Country. OiIL and GAS, MINING and PETROLEUM ARE NOT RENEWABLERESOURCES. TO TAKE
    PNG BACK, DO IT NOW OR NEVER.

  • Can not Provincial Governments – interested to take part in regional resources-related projects – invite investments from international money markets? If regions can use (in the new legislation) their resources as sort of guaranty, assets, the NGCL (and Papua generally) shall be developing very quickly.

  • Simply change the legislation and make provisions in the Oil & Gas Act for Provincial Govts to have equitable shares in Kind rather than cash as resource owners.

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