Kua: We will go by law

By Rebecca Kuku
THE Government will use the proper processes in line with the country’s laws in awarding Petroleum Development Licences (PDL), says Petroleum Minister Kerenga Kua.
Kua said told Parliament on Friday when responding to North Waghi MP and former petroleum minister Dr Fabian Pok, who asked about the case of issuing a PDL to Twinza, the operator of the Pasca reserves off shore of Gulf.
Pok said by law, there has to be at least three drillings before a PDL was issued. Twinza only has one drilling.
“If it is the law, we intend to comply,” Kua said.
“I am not sure if the requirement to do three drillings is a conditioned precedent to the granting of a PDL. If the requirement is to drill three drills, but if you found a huge reserve which can be sufficiently commercialised, do you necessarily have to do two or three other drills which also cost money or should you immediately come to the government to say that there is enough reserves there. We can start to commercialise and do the other drillings over time, that is the normal case in mining and petroleum.
“I am not sure, if the law actually says that you actually have to necessarily drill three drills before you apply for a PDL, for me it doesn’t make sense, but if that is the position of the law, we will do that.”
Kua said the state had not taken a formal position to enter into negotiations yet.
“We will verify the position in law and then I will progress the issue with the NEC for approval if we have to set up a State negotiation team to negotiate the gas agreement before we go to the processing of the application for a PDL.”