PNG Chamber of Mines and Petroleum

As delegates from around the world meet in Port Moresby for the APEC Food Security Summit, communities across PNG are benefiting from a range of agricultural initiatives developed and implemented by the resources industry to boost agriculture in project areas.

Recently, the Wafi-Golpu Joint Venture trained 39 women from Hengambu, Yanta, Babua and Wagang villages in Morobe Province on food preparation. The training was conducted by the National Agriculture Research Institute (NARI) in Lae.

Speaking at the Papua New Guinea Business Update in Townsville, Australia, earlier this month, Kassman showcased how PNG’s resource sector has played a vital role in the country’s economic development, with PNG being one of the few countries in the world where mining and petroleum projects provide socio-economic opportunities to the local areas they operate in.

During his speech to guests from both Australia and PNG, including Charles Abel, Deputy Prime Minister and Treasurer of Papua New Guinea, Kassman highlighted the following:

The Chamber made this statement when responding to media statements recently that the extractive sector was contributing very little to communities while it was enjoying tax concessions.

The Chamber says such statements undermine the significant social and economic contributions resource projects make to local communities and the nation.

It also stated that most people are not aware that PNG’s benefit structure is unique in the world as mining and petroleum companies in many jurisdictions of the world do not provide socio-economic services to the areas they operate in.

Vice President of the PNG Chamber of Mines and Petroleum, Richard Kassman, said this during the opening of the PNG Resources Sector media workshop on Thursday.

Kassman also called on the media to make reference to the constitution and remind everyone of their basic rights.

Speaking to industry communication specialists and mainstream media representatives, Kassman said the media plays an important role in these trying times, especially in the aftermath of the Mineral Resources Act (MRA) 1992 legislative changes.

Deputy president of the Chamber, Richard Kassman, said this includes the notion that there was over representation by the industry on the MRA Board, which could lead to conflict of interest.

Kassman also raised concern on the amendment to increase the development levy and transfer of a portion of this money to the Department of Mineral Policy and Geohazards Management.

In February the NEC and Parliament passed amendments to the MRA Act.

They include:

The Chamber President, Gerea Aopi, said today the MRA has been a success story for Papua New Guinea and the Government.

“The Chamber and the mining industry believe that the performance of MRA over the last decade is a credit to Government, and the excellent operating standards within the mining sector are an indicator of the good work of the regulator. It would be a tragedy for all mining industry stakeholders if this progress is lost,” Aopi said in a statement. 

The PNG Chamber of Mines and Petroleum announced that ANZ cemented its position as a lead sponsor by presenting a cheque of K50,000 to support PNG’s biggest resource industry event.

The fair will be staged from November 28^th to the 30^th at the Stanley Hotel and Suites in Port Moresby.

Chamber executive director, Dr. Albert Mellam, said: “ANZ has been a long-standing partner to various mining and petroleum projects in the country and is one of the most respected financial institutions in the Pacific.

According to the PNG Chamber of Mines and Petroleum, oil production from mature oil fields are in decline, with most production coming from Kutubu complex and Moran fields.

Gobe fields have waned rapidly in recent years and these fields now operate primarily as gas producers in support of the PNG LNG Project.

Currently, total crude oil production is about 22,000 barrels per day (bpd), according to the Chamber.

PNG’s oil production has been on a declining trend since exports commended in 1992 with peak rates of 150, 000 bpd declining to 25, 000 bpd in 2016.

The appeal has received immense support with the latest funding support that stood at 190 thousand kina.

The appeal committee is looking to raise 2.5 million kina to look after the 18 families who lost their properties to two separate fires within days of each other.

On Wednesday, companies came forward with a number of immediate needs, including supplies of water.

Currently pre-FEED is being carried out for the Papua LNG Project, which is identifying the technical and economic viability of the project.

According to the PNG Chamber of Mines and Petroleum update on Papua LNG, the joint venture has begun discussions on potential synergies to optimise the development of the Elk-Antelope gas field.

Following ExxonMobil’s acquisition of InterOil early this year, the PNG LNG operator has become an equity partner in PRL 15 which contains the major Elk-Antelope gas field.