Pruaitch questions system shift

NATIONAL Alliance Party leader Patrick Pruaitch, pictured, has warned that due process should be followed if a shift from a concession-based petroleum system to a production-sharing one is to happen.
“There has been no significant study or position paper on this shift either by the Department of Treasury or the Department of Petroleum,” Pruaitch said in a statement.
He questioned why Cabinet endorsed the shift without any expert study or strategy.
“Is the Government going to nullify existing petroleum exploration licences and renegotiate production-sharing agreements?” he said.
“This would have an adverse impact on PNG’s petroleum exploration which is dominated by a dwindling number of companies.”
Pruaitch, who recently joined the Government from the Opposition, said until he saw evidence to prove otherwise, the current system continued to serve PNG well.
“PNG has developed a unique system that contains features of the traditional exploration and production concessions and production-sharing agreements,” he said.
“Some of these features have been adopted by other countries.”
“Before major policy changes are contemplated, a responsible government would have assessed quantitative and qualitative differences to make a rational judgement.”