The Government will continue to work on establishing a policy on Domestic Market Obligation so that certain amount of oil and gas extracted is retained and used in the country.
It is believed more oil and gas projects are expected to come on stream within the next five to 10 years which has the potential to increase PNG’s production of oil and gas.
Government says this policy will have a positive impact in the country by increasing oil and gas supplies within country at low cost.
Work on the policy began in 2016 and will continue to 2017.
Meanwhile, the Government initiated work on the Template Gas Agreement is expected to be completed next year for government consideration and endorsement.
The agreement aims to ensure transparency and more consistency in negotiating oil and gas project agreements with prospective developers.
Picture credit: Loop file photo