Pok reveals new authority will replace department

THE Government will create the National Petroleum Authority to replace the Department of Petroleum, says Minister Dr Fabian Pok.
Pok said it was part of the government’s effort to reform the natural gas industry.
“The prime minister has announced the removal of the portfolio of energy from my ministry. The core focus of my ministry will be petroleum,” he said.
Speaking at the PNG Petroleum and Energy Summit in Port Moresby yesterday, Pok said the National Executive Council in 2013 approved the abolishment of the department and the creation of the authority.
He said while the energy sector was moving to establish the energy authority, work was progressing for the establishment of the Petroleum Authority.
“With the immense energy resource availability in the country, the government believes the separation is the correct approach to maximising these resources to enable and boost development in other sectors,” Pok said.
“The industry is growing fast and I am determined to make the necessary changes to the department this year so it becomes a competent and modern organisation to meet industry needs.”
Pok said the department would focus on LNG project security by reviewing the LNG Umbrella Benefits Sharing Agreement and Landowner Benefit Sharing Agreements and for the payment of outstanding royalties.
He said amendments to the Oil and Gas Act would be made to allow local MPs to hold trustee roles on the board of the Mineral Resources Development Company’s subsidiary companies.