The inaugural Community Affairs and National Content Conference and Expo came to a successful close today at the PNG University of Technology in Lae, Morobe Province.
Described as a national event that, for the first time ever, focused on landowners and landowner companies, CANCONEX attracted 846 registered attendees, including five landowner companies in the mining and petroleum sector, and multi-national and national companies.
Before officially closing the event, Gulf Governor, Sir Chris Haiveta, reemphasised the Prime Minister’s sentiments on “local content”, describing it as a crucial part in the investment and development of mining and petroleum projects.
Haiveta said local content, which is maximum benefit for locals in project areas, should be improved for the benefit of investors, project developers, the government and landowners.
Haiveta further said the ‘project support and national content plan policy’ and the ‘national content plan’ (NCP) must detail how they will assist landowner companies, both with and without proven track records, in facilitating their operations and growth.
“While project developers usually prefer engaging with experienced landcos (landowner companies) that are experienced, this unintentionally excludes many new landcos in new project areas such as mine. Government intervention, both national and provincial, is necessary to prevent this from happening.
“Prioritise opportunities for those in the new project areas.
“So far, I have yet to see the national government come out to me for Papua LNG.
“The penalties for non-compliance under the Oil and Gas Act range from K1,000 to K5,000, with desertion incurring a penalty of K25,000. Given the importance of the NCP, these fines might not be sufficient to deter non-compliance.
“A tiered penalty system with higher fines for serious non-compliance and lower fines for minor offences could be more effective.”
Haiveta outlined that the national content plan is a sensitive yet critical topic for PNG.
The Minister for Petroleum, Kerenga Kua, and the Department of Petroleum and Energy have initiated a process to enhance the NCP for the benefit of landowners, businesses and Papua New Guineans seeking opportunities in the oil and gas industry.
He encouraged attendees to speak up if they spot any issues with the content plan.
He then officially closed CANCONEX and thanked attendees for embracing the conference and hoped they took away lessons that they will apply in their journeys.