Next parlt to deal with law’s review: Sonk

By PETER ESILA
THE review of the Organic law on oil and gas will go to Parliament after next year’s election due to changes and lessons learnt in some of the current project negotiations, Kumul Petroleum Holdings Ltd (KPHL) managing director Wapu Sonk says.
Sonk said this during the PNG Investment conference yesterday.
He said the organic law would allow state-owned enterprises (SOEs) such as KPHL and Kumul Minerals Holdings Ltd to get licenses to partake in the development of the mining and petroleum sector.
Sonk, who is part of the current Government’s state negotiating team (SNT), said it was set up by the Government as a way of getting government officials to do more commercially driven negotiations.
“Some of these changes in the Act removes all of that (SNT learning) so we realise all the commercialisation as soon as the investors are interested and they see that it will work economically for everyone involved then we go straight into development, the Organic law is about production sharing.”
He said the organic law on the oil and gas and minerals was on the agenda this year but was withdrawn and being revised based on lessons taken from the Porgera mine negotiations and oil project sites.
He said it would go to Parliament next year after the formation of the new government.
“As far as the act or intent of the organic law was concerned is to put Kumul Petroleum and Kumul Mineral in the box seat to get those licenses, so that we can do commercial deals as far as inviting investors into the country is concerned, as far as framing down or framing out or proposing for development and negotiating for development of the assets is concerned,” Sonk said. He said major projects such as Wafi-Golpu and P’nyang had been delayed and SNT aimed to get officials into commercially driven negotiations.