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Papua New Guinea has launched the K2.5 billion Port Moresby International Airport (PMIA) Redevelopment Project, one of the country's largest aviation infrastructure investments, aimed at transforming Jacksons International Airport into a modern aviation gateway and strengthening PNG's position as a regional aviation and economic hub over the next 50 years. Officially launched by the National Government and the National Airports Corporation (NAC), the project will be delivered in four phases over six and a half years. It combines public investment with private sector participation to expand airport capacity, improve passenger services and support long-term growth in trade, tourism and investment. Speaking at the launch, Minister for Civil Aviation Waki Goi thanked Prime Minister James Marape and the National Executive Council (NEC) for backing what he described as a transformational national investment. Goi said the project would begin with a K25 million government investment and was expected to attract substantial additional funding from both the public and private sectors over its lifetime. "Investing in areas that bring big returns is the way to go forward for the next 50 years," he said. The redevelopment includes major runway upgrades, expansion of the domestic and international terminals, and the replacement of ageing airport infrastructure with modern aviation facilities. "You will see many changes over the coming years. We will improve the runway, upgrade the domestic and international terminals, and replace ageing facilities with modern infrastructure," Goi said. A key component of the redevelopment is the creation of "airport cities" around major airports to stimulate commercial development and attract private investment. Goi said investors were prepared to commit significant capital to Papua New Guinea's aviation sector, provided the country demonstrated sound financial management and fiscal discipline. He urged the newly restructured NAC board and management to maintain strong financial governance by keeping expenditure below revenue to reinforce investor confidence. According to NAC, the redevelopment represents one of the largest aviation infrastructure projects in Papua New Guinea's history. It is expected to increase airport capacity, improve operational efficiency, deliver passenger services to international standards, strengthen PNG's preparations for APEC 2033, and support long-term expansion of the country's aviation sector. The minister also called for closer collaboration between the country's major aviation centres, including Tokua, Lae and Mount Hagen, describing them as important drivers of future economic growth. "I would like to encourage all of you, we must not fight for positions, we must not fight for the cake, we must fight for the real development that must take place. This is where our major income for Papua New Guinea lies. We must partner equally, talk equally, understand each other and move forward," he said. Four-phase redevelopment The redevelopment will be delivered in four stages over the next six and a half years. Phase One will focus on relieving congestion by extending the domestic terminal by 110 metres while upgrading the airport's airfield ground lighting (AGL) and power supply systems. Phase Two, funded under the Civil Aviation Development Investment Programme (CADIP III), will significantly expand and reconfigure the domestic terminal. Works include new check-in counters, aerobridges, upgraded baggage handling systems, VIP lounges, expanded retail and concession areas, and improved accessibility for passengers with disabilities. Phase Three will expand apron facilities to accommodate Air Niugini's new Airbus A220 and Boeing 737 aircraft. Phase Four will deliver a new international terminal equipped with modern passenger-processing technology, including self-service check-in, advanced baggage screening, walk-through metal detectors and expanded commercial facilities. The final phase will also extend the airport's existing 2,750-metre runway to 3,500 metres, construct rapid-exit and parallel taxiways, expand cargo and aircraft maintenance facilities, incorporate green energy solutions, and develop associated landside infrastructure through public-private partnerships. Prime Minister James Marape described airports as critical national infrastructure supporting trade, investment, tourism and economic growth. "Airport is crucial, airport is key," he said. Marape commended the NAC board, chaired by Shannon Anga, and Acting Managing Director Conway for prioritising the expansion of the domestic terminal, describing it as the corporation's strongest revenue-generating asset and the financial engine needed to sustain airport operations nationwide. To accelerate the first stage of the project, Marape announced K20 million in National Government funding, complemented by K5 million allocated internally by NAC. Marape linked the redevelopment to Papua New Guinea's broader economic outlook, noting that the country's non-resource sector has recorded annual growth of around four per cent over the past four years. He pointed to strong occupancy rates at major hotels, including the Hilton and Airways Hotel, as evidence of rising business activity and increasing visitor numbers. The Prime Minister said Papua New Guinea was preparing for a significant increase in passenger and business travel, driven by major resource developments expected through the late 2020s and early 2030s. These include Papua LNG, PNG LNG expansion, Pasca gas development, the reopening of the Porgera gold mine, the Wafi-Golpu and Yandera projects, the Frieda River project, and the 20-year extension of the Ok Tedi mine. "By 2028, the volume of traffic will decrease, but into 2033 with APEC coming aboard, I see future growth in the economy," Marape said. Passenger growth underpins expansion Passenger growth projections reinforce the need for the redevelopment. National Airports Corporation data shows that Port Moresby International Airport handled 779,039 passengers in 1997. That figure had risen to 1.68 million by 2025—an increase of almost one million passengers over 28 years, representing a compound annual growth rate of 2.8 per cent. Based on an estimated annual growth rate of four per cent, passenger numbers are projected to reach 2.5 million by 2035 and 3.7 million by 2045. Across NAC's network of 22 airports, passenger movements increased from 1.9 million in 1997 to 3.04 million in 2025. The corporation projects this will grow to 4.4 million by 2035 and 6.6 million by 2045, highlighting the need for continued investment in airport infrastructure nationwide. Expanding international links Marape said Papua New Guinea was also strengthening international connectivity. Following recent discussions with the President of China, he said China Southern Airlines had increased services between Guangdong Province and Port Moresby from one weekly flight to three, boosting tourism, trade and business links between the two countries. The Prime Minister also emphasised the importance of transparency and accountability within the National Airports Corporation, saying the organisation must remain free from corruption, favouritism and nepotism to maintain investor confidence and safeguard the country's aviation sector. In a direct message to Air Niugini, he urged the national carrier to settle outstanding debts owed to NAC. "I know you owe NAC some money. For goodness' sake, Chairman of Air Niugini, pay NAC the money. Don't hold back. If you don't have enough to pay ASAP, pay something and not nothing. Work as a business with NAC and sequence your payments," he said. Marape also commended Airlines PNG for maintaining strong operational reliability and encouraged the airline to continue complementing the domestic aviation market as demand continues to grow. Building on decades of investment The redevelopment builds on decades of investment at Jacksons International Airport. Since transitioning from military to civilian operations in 1945, the airport has undergone several major upgrades, including the commissioning of new terminal facilities in 1963, refurbishment for the 2015 Pacific Games, and the opening of the APEC Terminal in 2018. The launch also demonstrated a whole-of-government commitment to the project, with the Minister for Foreign Affairs, the Minister for Works and Highways, and the Governor of the National Capital District joining the project team. Goi called on government agencies, industry and development partners to work together to ensure the success of Papua New Guinea's aviation sector. "If you are listening now, please contribute one way or the other to make civil aviation work for us all as we move into the future," he said. The phased redevelopment is expected to provide immediate relief from congestion while laying the foundation for long-term expansion of Papua New Guinea's principal international gateway. Feasibility studies and financing arrangements for the fourth phase are scheduled to begin in 2027. NAC is expected to invite investors, contractors and development partners to participate in delivering what is set to become one of the country's most significant aviation infrastructure projects, reshaping PNG's aviation sector and supporting economic growth for decades to come.

South Pacific Metals has begun a new exploration campaign at its wholly owned Kili Teke copper-gold project in Papua New Guinea's Hela Province after securing support from landowners and provincial and local government authorities. The company said the programme follows community awareness meetings held in April and May and marks its return to Exploration Licence 2310 through its Papua New Guinea subsidiary, Kainantu Resources Ltd. The project is located about 40 kilometres from the Porgera gold mine within one of the country's most prospective gold-copper belts. Kili Teke hosts an NI 43-101 inferred mineral resource of 237 million tonnes grading 0.24 grams of gold per tonne and 0.34% copper, containing an estimated 1.81 million ounces of gold, 802,000 tonnes of copper and 40,000 tonnes of molybdenum, equivalent to 4.2 million ounces of gold. The existing resource is confined to the Central Main Porphyry, representing only a portion of the broader intrusive complex. South Pacific Metals said it has identified more than 10 exploration targets across three mineralisation styles, including the Ridge Gold Area, Ieru Porphyry and a corridor of copper-gold skarn targets. A machine-learning study completed with ALS GeoAnalytics ranked 14 drill targets, including six priority targets that will be evaluated during the exploration programme. The company said more than 95% of historical drilling has been concentrated on the Central Main Porphyry, leaving the Ieru Porphyry, Ridge Gold Area and Skarn Corridor largely untested. Historical drilling returned intercepts including 7.8 metres grading 12.98% copper and 11.75 grams of gold per tonne, while surface rock-chip samples assayed up to 38.7% copper and 40 grams of gold per tonne. The company believes these areas offer significant potential for additional discoveries beyond the current resource. The exploration programme will begin with camp establishment, community engagement, geological mapping, soil sampling, ground magnetic surveys and trenching before progressing to drill testing of the highest-ranked targets. The staged approach is intended to refine targets using geological, geochemical and geophysical data before drilling commences. Executive Chairman Michael Murphy said Kili Teke represented a rare opportunity for a junior explorer because of its sizeable existing resource and exploration upside. "Kili Teke is rare for an explorer of our size. A district-scale system with a 4.2-million-ounce resource and more than US$20 million of past work behind it, yet with three of its four prospect areas barely drilled," Murphy said. "Our job is to follow the data, stage by stage, back to the productive heart of this system, and we are doing so with the full support of the landowners and the Hela Provincial Government." Kili Teke has been explored for more than a decade, with previous operator Harmony Gold investing more than US$20 million between 2014 and 2017. The work included nearly 37,000 metres of diamond drilling, geophysical surveys, geochemical sampling and geological mapping that led to the definition of the current inferred resource. South Pacific Metals has since incorporated machine-learning analysis and updated geological modelling to identify new exploration targets across the 253-square-kilometre licence area. The company said the current exploration campaign is aimed at expanding the known mineralised system and advancing one of Papua New Guinea's most advanced undeveloped copper-gold projects.

Papua New Guinea has welcomed the start of a major offshore oil and gas exploration campaign near Kupiano in Central Province, with Prime Minister James Marape saying the investment underscores international confidence in the country's energy sector. The exploration programme, led by TotalEnergies and its partner Petronas, involves the drilling vessel Viking and is expected to attract between US$100 million and US$200 million in investment. Petroleum Minister Jimmy Maladina represented the government aboard the Viking as project partners and stakeholders marked the commencement of drilling operations. Marape said the campaign demonstrated Papua New Guinea's continued appeal as a destination for global energy investment and highlighted the importance of exploration in sustaining the country's petroleum industry. "The presence of the Viking offshore near Kupiano is a strong signal of confidence in Papua New Guinea's resource potential," he said. He said exploration remains the foundation of the country's resource sector, creating opportunities for future discoveries, new projects, employment and government revenue. Marape added that while major developments such as Papua LNG and the P'nyang Gas Project remain priorities, continued exploration is necessary to support the long-term growth of the petroleum industry. He said investment in offshore exploration also reflected the need for a stable and competitive investment environment capable of attracting capital for high-risk projects. "Deep-water exploration requires substantial investment, advanced technology and confidence in the future of our country," Marape said. The Prime Minister said the government would continue working with industry partners to promote responsible resource development while encouraging further exploration and investment across Papua New Guinea.

The Sepik Development Project (SDP) continues to record strong progress in stakeholder engagement while expanding employment opportunities for Papua New Guineans, with a clear focus on benefiting communities in the Sepik region. Project representatives from the community affairs team, whose dedicated role is to meet with and listen to local communities, recently visited near-mine communities, including those in the Upper Sepik, where they held constructive engagement sessions about project plans and new opportunities. The consultative engagement is part of an ongoing schedule of positive engagement with landowners, local communities, government agencies, and other key stakeholders, reflecting the Project’s commitment to transparency, partnership, and responsible resource development. Country Manager Dr Joel Hamago said the strength of stakeholder relationships established to date demonstrates the Project’s long-term commitment to Papua New Guinea. “We are encouraged by the collaborative approach we are seeing on the ground, and we remain committed to open dialogue and mutual respect as the Project progresses,” Dr Hamago said. “Meaningful engagement with our host communities, based on transparency and accurate information, is central to how we operate.” Dr Hamago called on opponents of the Project to adopt the same commitment to accuracy and honesty in their actions. “It is disappointing to see a recent media publication where Project Sepik continues to misrepresent the outcome of the SDP’s recent engagement with Sepik communities via the OECD’s AusNCP referral process, where an independent examiner confirmed our compliance with OECD guidelines in relation to stakeholder engagement on this project.” Dr Hamago said community engagement activities would continue. “While we have had an overwhelmingly positive response from communities, which value the level of engagement and the future opportunities from the Development, we understand that many people still have concerns and questions, which is why we will continue to listen as we consult with them." Employment Growth and Opportunities for Sepik Communities As activities continue to advance, the Sepik Development Project has opened a number of new employment opportunities across various roles, which are currently advertised on the Project’s official LinkedIn page. In line with the Project’s localisation strategy, priority will be given to suitably qualified applicants from the Sepik region, ensuring local communities are directly involved in and benefit from Project development. “Our employment strategy is deliberately focused on local participation,” Dr Hamago said. “Wherever possible, we want people from the Sepik to take up these roles, gain valuable skills, and become part of the Project’s journey from the early stages.” Supporting PNG’s Local and National Content Agenda The Sepik Development Project strongly supports the Papua New Guinea Government’s drive to increase local and national content within major resource developments. Through targeted recruitment, training, and skills development, the Project aims to create sustainable employment outcomes and contribute to long-term national capacity building. “This Project is about more than just mining. It is also an infrastructure project with rippling opportunities,” Dr Hamago said. “It is about building capability, supporting PNG talent, and ensuring that Papua New Guineans are well positioned to participate meaningfully in major developments, both now and into the future.” How to Apply Interested applicants are encouraged to view current vacancies and application details via the Frieda River Limited LinkedIn page. Applicants should carefully review role requirements and ensure their qualifications and experience align with the advertised positions. The Frieda River Project will continue to provide regular updates on stakeholder engagement, employment opportunities, and Project milestones. Frieda River Limited is the proponent of the Sepik Development Project (SDP) in Papua New Guinea. The SDP comprises four integrated components: the Sepik Infrastructure Project (SIP), the Frieda River Copper-Gold Project (FRCGP), the Frieda River Hydroelectric Project (FRHEP), and the Sepik Power Grid Project (SPGP). The Project is designed to deliver enabling infrastructure, including power generation and transmission, road access, airport and port facilities, supported through private investment. During operations, the SDP is expected to create approximately 2,500 direct jobs, with a target of 93 per cent national employment, and generate more than 30,000 indirect employment opportunities. The Project incorporates engineered tailings and water management systems, as well as a hydroelectric power solution intended to reduce operational emissions and support environmental management objectives, including protection of the Sepik River system. Frieda River Limited is a significant subsidiary of the PanAust Limited Group. Along with pre-development opportunities in Papua New Guinea operations, PanAust Limited also owns Phu Bia Mining, an award-winning dual operation in Laos, and has development opportunities in Chile. An Australian-incorporated company, PanAust is owned by Guangdong Rising H.K. (Holding) Limited, which is a wholly owned subsidiary of Guangdong Rising Holding Group Co., Ltd. (GDRH). GDRH is a Chinese state-owned company regulated under the State-owned Assets Supervision and Administration Commission of the People’s Government of Guangdong Province in China.

Prime Minister James Marape has welcomed growing Malaysian interest in expanding investment in Papua New Guinea's oil palm, livestock and downstream processing sectors, describing the proposed developments as a major opportunity to create jobs, strengthen food security, increase local participation in the economy and unlock the country's vast agricultural potential. Marape made the remarks during a high-level meeting with Malaysian Palm Oil Board (MPOB) Chairman Datuk Mohamad Helmy Othman Basha, who also serves as adviser to SD Guthrie; New Britain Palm Oil Chief Operating Officer Nik Maziah Nik Mustapha; and Chief Financial Officer Mohamad Mahazir Mustaffa. The meeting was also attended by International Trade and Investment Minister Richard Maru and Oil Palm Minister Francis Maneke. Discussions centred on opportunities to expand oil palm and cattle production, develop downstream processing industries, strengthen cooperation between Papua New Guinea and Malaysia's palm oil sectors, and unlock the agricultural potential of the Ramu and Sepik plains through sustainable investment. Marape said Papua New Guinea remains one of the world's last frontiers for responsible agricultural expansion, with vast areas of underutilised land suitable for agriculture and livestock development. "Malaysia has been one of Papua New Guinea's most important economic partners since Independence, and we welcome investors who have demonstrated a long-term commitment to our country and our people," he said. "We have the land, we have the people, and we have access to some of the world's fastest-growing markets. Our task is to convert these advantages into productive economic activity that creates jobs, generates income and improves the lives of our people." The Prime Minister highlighted the contribution of New Britain Palm Oil (NBPOL), describing the company as one of Papua New Guinea's largest agricultural investors and employers. He noted that NBPOL directly employs more than 22,000 Papua New Guineans and supports thousands more through smallholder agriculture, transport, contracting and related businesses. "This is the type of investment that creates real opportunities for our people and stimulates growth throughout the wider economy," he said. Marape also acknowledged the company's leading role in the palm oil industry. He said NBPOL's operations in West New Britain, Oro, Milne Bay, New Ireland and Madang provinces have helped establish palm oil as one of Papua New Guinea's most valuable agricultural export commodities. In 2025, Papua New Guinea exported more than K3 billion worth of palm oil and palm kernel products, making the industry one of the country's largest non-mineral export earners and a major contributor to rural employment, foreign exchange earnings and economic growth. "Palm oil continues to be one of Papua New Guinea's most successful agricultural industries and one of our most important export sectors. The industry supports thousands of smallholder farmers, creates employment and generates billions of kina in export revenue for our economy," Marape said. Beyond palm oil, the Prime Minister pointed to the company's growing contribution to the livestock sector. He noted that NBPOL operates the country's largest cattle business, with approximately 27,000 head of cattle, including around 24,000 in Ramu and 3,500 in West New Britain. The company is also Papua New Guinea's largest domestic producer of fresh beef, supplying a substantial share of the national market. "This demonstrates that agriculture is not just about oil palm. Companies such as New Britain Palm Oil are contributing to food security, livestock development and import replacement at a national level," Marape said. As Papua New Guinea seeks to expand agricultural production, Marape said the Ramu and Sepik regions offer significant opportunities for growth, particularly in cattle development and integrated agricultural projects. He said extensive grassland areas in the two regions could support large-scale livestock production without affecting primary forests. "We do not have to destroy our forests to grow agriculture. There are extensive grassland areas that can be converted into productive economic zones while preserving our forests and protecting our environment," he said. Marape also underscored the wider economic benefits generated by large-scale agricultural investments, noting that NBPOL injects approximately K12 million into the economy every fortnight through wages and salaries. "When workers receive their pay, that money flows directly into local communities, supporting families, trade stores, transport operators, schools, churches and small businesses throughout the country," he said. "The impact goes far beyond the plantation itself. Every fortnight, K12 million is circulated through our economy by this company alone, creating opportunities and supporting livelihoods across Papua New Guinea." Looking ahead, the Prime Minister welcomed proposals to expand integrated agriculture projects that combine oil palm, cattle production and downstream processing. He said Papua New Guinea aims to move beyond the export of raw commodities and capture greater value through local processing and manufacturing. "We are not simply interested in exporting raw commodities. We want to see greater value addition, greater downstream processing and greater participation by Papua New Guineans across the entire value chain," he said. Marape also highlighted opportunities to reduce the country's dependence on imported food products through expanded domestic livestock production. "Every year, Papua New Guinea spends hundreds of millions of kina importing food products that can be produced here at home," he said. "We have an opportunity to become more self-reliant in food production while positioning ourselves to become a supplier to regional markets." The Prime Minister said the Government would continue supporting investment partnerships involving the private sector, landowners, superannuation funds and state institutions to ensure the benefits of growth are widely shared. He also reaffirmed the Government's commitment to maintaining a stable investment environment supported by strong constitutional protections, an independent judiciary and the rule of law. "Our democracy is strong. Our courts are independent. Our laws protect investors. We want investors to have confidence that Papua New Guinea is a safe and reliable place to do business," he said. Marape said agriculture would remain central to the Government's economic diversification strategy, with downstream processing, food production and biofuel development offering significant opportunities for future growth. "Agriculture is the future of Papua New Guinea. If we develop our land responsibly, create opportunities for our people and partner with quality investors, we can transform rural economies, strengthen food security and build lasting prosperity for future generations," he said.

Papua New Guinea has secured approval for a major biodiversity conservation project under the Global Biodiversity Framework Fund (GBFF), a move expected to strengthen community-led conservation efforts and support the country's commitments under the Kunming-Montreal Global Biodiversity Framework. The project, titled "Empowering Indigenous Peoples and Local Communities for sustainable management and conservation of 700,000 hectares of critical ecosystems in three Highland provinces in Papua New Guinea," will be implemented by the Conservation and Environment Protection Authority (CEPA) in partnership with the Food and Agriculture Organization of the United Nations (FAO). The initiative will support Indigenous Peoples and Local Communities (IPLCs) across Enga, Chimbu and Jiwaka provinces in conserving critical ecosystems while promoting sustainable livelihoods and strengthening customary stewardship systems. The project contributes to Papua New Guinea's efforts to meet global biodiversity targets, including the international goal of conserving at least 30 per cent of the world's land and sea areas by 2030. Papua New Guinea is recognised as one of the world's 17 megadiverse countries, with forests covering about 78 per cent of its land area and hosting species found nowhere else on Earth, including tree kangaroos, long-beaked echidnas and rare birds-of-paradise. Approximately 97 per cent of the country's land remains under customary ownership, placing Indigenous communities at the forefront of conservation efforts. According to CEPA Managing Director Jude Tukuliya, the project underscores the importance of protecting biodiversity and forest ecosystems that communities have relied on for generations. He said Indigenous Peoples and local communities continue to play a crucial role in safeguarding the country's biodiversity and that conservation efforts must integrate traditional knowledge with modern management approaches while supporting economic opportunities for local people. FAO Representative in Papua New Guinea Dr Kachen Wongsathapornchai said conservation initiatives are most effective when they provide tangible benefits to communities. "Protecting biodiversity and sustaining livelihoods go hand in hand. By advancing biodiversity-positive production, we make environmental protection a driver of stronger food systems and rural economies," he said. The project aims to improve the management of more than 272,000 hectares of protected areas and community conservation landscapes, restore 5,000 hectares of degraded ecosystems and promote biodiversity-friendly agricultural practices across 7,000 hectares of farmland. It will also support the recognition of Other Effective Area-Based Conservation Measures (OECMs), develop sustainable financing mechanisms and deliver direct benefits to at least 20,000 people, with women expected to comprise half of all beneficiaries. Project proponents said the initiative would help establish ecological corridors across the Highlands, enabling species to adapt to climate change while encouraging collaboration among communities through shared stewardship of natural resources. The project also seeks to reduce pressure on forests and other ecosystems by supporting economic activities such as agroforestry, organic agriculture, ecotourism and market access for biodiversity-friendly products. Officials said the approval highlights Papua New Guinea's growing role in community-led conservation and demonstrates how Indigenous stewardship can contribute to addressing global biodiversity challenges while creating sustainable development opportunities for local communities.

Papua New Guinea's tourism sector contributed an estimated US$244 million (PGK1 billion) to the economy in 2025 as international visitor arrivals continued to recover, although average spending per traveller declined, according to the latest International Visitor Survey. The survey, released by the Pacific Tourism Organisation (SPTO) and the Papua New Guinea Tourism Promotion Authority (PNGTPA), found international visitor arrivals rose to 103,881 in 2025 from 100,223 a year earlier, reflecting continued recovery supported by targeted marketing campaigns, improved air connectivity and government initiatives to strengthen the country's tourism sector. The annual survey analysed 4,827 responses from 5,139 questionnaires collected, representing about 7 per cent of total visitors and a 19 per cent response rate. The report found that 41 per cent of respondents were first-time visitors, while the average household income of travellers ranged between US$80,000 and US$99,999. Natural attractions, cultural diversity, business opportunities, visits to family and friends, and the country's Second World War heritage were among the main reasons visitors travelled to Papua New Guinea. Average spending per visitor was US$2,352 per trip, including US$2,087 in prepaid expenditure and US$995 spent within Papua New Guinea. Around 65 per cent of prepaid spending, equivalent to US$1,356 per visitor, flowed directly into the local economy. Despite the increase in arrivals, average visitor spending declined from 2024 as travellers stayed for shorter periods, averaging 10 nights, while the visitor mix shifted towards lower-spending segments. The report said the trend reflected changing travel behaviour but also highlighted opportunities to increase tourism value through higher-yield markets and improved visitor experiences. Visitor satisfaction remained high, with an overall rating of four out of five. About 92 per cent of respondents said they would return to Papua New Guinea, while 88 per cent said they would recommend the country as a travel destination. Visitors identified the friendliness of local communities, the country's natural beauty and its rich cultural heritage among Papua New Guinea's strongest attractions. However, they also cited safety and security, infrastructure, air transport reliability and travel costs as areas requiring further improvement. PNGTPA Chief Executive Officer Eric Mossman Uvovo said the survey provides valuable evidence to help refine tourism marketing strategies, strengthen partnerships and improve tourism products and services. "The International Visitor Survey provides critical insights into the motivations, behaviours and experiences of our visitors," Uvovo said. SPTO Chief Executive Officer Christopher Cocker said the findings would support evidence-based tourism planning in Papua New Guinea while contributing to broader efforts to strengthen sustainable tourism development across the Pacific. Papua New Guinea is one of 10 Pacific island countries participating in the Pacific Tourism Data Initiative, which is funded by the New Zealand Government and provides tourism data to support policy-making and industry development across the region.

Resources and/or Reserves The words resources and reserves as applied to the presence of oil and gas deposits are often quite casually used without due regard for their actual meaning. This can clearly mislead people either by grossly exaggerating, or under-estimating the importance of an undrilled prospect, the potential oil and gas production of a field, or even the actual petroleum endowment of a nation. The latter can in turn lead to very serious economic policy errors by a government. A country may be prospective for petroleum accumulations, but being prospective is only a statement of there being the potential for oil and gas to have accumulated into discrete subterranean pools, or accumulations, which may have the potential to be tapped by wells drilled into them. These accumulations have to be found first by field exploration and the drilling of wells, which are not easy tasks. Discovered accumulations then have to be evaluated for the quality of the petroleum that they bear and their extent, and only if they are large enough, might they be considered for commercial recovery of that discovered petroleum. In this discussion, I only discuss conventional oil and gas accumulated in porous and permeable reservoirs, not oil and gas unlocked from less permeable strata by fracturing or gas released from degasification of coal – coal bed methane.      Figure 1: Section through rock strata illustrating subsurface sources of oil and gas, after U.S. Energy Information Administration. Discovery Exactly what constitutes a discovery can be debated for hours by petroleum technocrats.   The Society of Petroleum Engineers defines a discovery as being a “petroleum accumulation where one or several exploratory wells through testing, sampling, and/or logging have demonstrated the existence of a significant quantity of potentially recoverable hydrocarbons and thus have established a known accumulation.” In this context, recoverable means that the hydrocarbons have to demonstrate that they are indeed moveable and are not just immovable residues.  A significant quantity implies that there is evidence of a sufficient quantity of petroleum to justify estimating the in-place volume of petroleum as demonstrated by the drilling of wells into the accumulation and for evaluating the potential for future commercial recovery of that petroleum. One should be cautious in the use of the term discovery. Discovery should not be translated into undue expectations of oil and gas field development and petroleum incomes.  Development of any oil and/or gas accumulations only comes as and when there are proven to be adequate recoverable oil and/or gas reserves to warrant the expense and effort of development and production operations. Discovery is the first elemental step towards development, but it is only the initial identification of the accumulation of petroleum, the scope and dimensions of which has to be subsequently ascertained. Interestingly enough, the Papua New Guinea Oil and Gas Act does not define discovery, though it does require the discovery of petroleum to be notified to the Government immediately and details of the same to be provided within three days. The licensee may then be directed to furnish “written particulars of the chemical composition and physical properties of the petroleum; and the subsoil in which the petroleum occurs; and any other pertinent matters.” Typically, the acid test of a discovery has been the testing of the discovery well to see if the petroleum will flow from the subsurface reservoir to the surface, though modern downhole tools can simulate such tests and provide a reasonable understanding of the petroleum content of the discovered accumulation and the ability of its reservoir to permit the flow of its contained fluids.     Figure 2: Testing of the Pasca A-4 well in the Gulf of Papua in 2019, after Twinza Oil Ltd. The evaluation of the results of an exploration well needs to be done most carefully. Full attention to the monitoring of the petroleum operations is essential to preserve the interests of the nation, not that the petroleum companies might mislead the government, but errors of interpretation and judgement do occur.  In one famous case in Papua New Guinea, a well-known operating petroleum company thought that it had made an oil and gas discovery. In an effort to keep up with its fiduciary duties to its shareholders and its Australian Stock Exchange listing requirements, it issued a press release announcing that it had made a significant oil and gas discovery of considerable thickness with well logs showing a gas cap overlying a respectable oil column. The company’s development geologist courteously delivered a copy of the press release to the author at the Government’s Petroleum Division at the Department of Petroleum and Energy together with a set of the well logs (which necessarily excited the author). After ten minutes of cursory review of the logs, the author announced to the company’s development geologist that the company had not discovered any oil or gas, but that the well had rather encountered reservoirs full of water. The press release was suitably endorsed and sent back to the company’s managing director, who was stunned in disbelief.  The company proceeded to evaluate the well the next morning with a full well test of the various supposed hydrocarbon-bearing reservoirs, but the well tests flowed only water. Such was not only a grave disappointment and embarrassment to the company, but also to the Government which naturally would have preferred a discovery.   A Field In conventional petroleum reservoirs, a field is typically an area consisting of a single accumulation or multiple accumulations in a reservoir or reservoirs all grouped on, or related to, the same individual geological structural feature and/or stratigraphic condition. There may be two or more reservoirs in a field that are separated vertically by intervening impermeable rock, laterally by local geologic barriers, or both. Aside from accumulation and reservoir, some jurisdictions use the term pool. In Papua New Guinea, a petroleum pool is defined as a “naturally occurring discrete accumulation of petroleum.”   Figure 3: Map of the Kutubu oil and gas fields: Iagifu-Hedinia, Agogo and Usano, after Oil Search Ltd.       Poor Advice Can be Misleading In one developing country, its foreign expert oil and gas advisers told the government that it had one billion barrels of crude oil. However, that estimate was only an assessment of the overall potential petroleum endowment of the country, if it might be realised through appropriate exploration and discovery. It was a probabilistic estimate based on an assessment of regional geological parameters that are conducive to the formation of petroleum accumulations. It was obviously dependent on the results of exploration which might, or might not take place. Moreover, the advice failed to define whether that was the amount of oil and gas that might be found in situ within the yet-to-be-discovered accumulations, or whether it would be the amount of oil and gas that might be recoverable, either technically or economically. Alas oil, as we all know, is viscous and sticky, and does not flow easily. It also requires energy to flow to the surface, so only a proportion of all subterranean oil discovered is ever recovered. That estimate of the country’s oil endowment also only had a 50% probability. Subsequent exploration by oil and gas companies found just several accumulations of crude oil amounting to an aggregate 200 million barrels of oil-in-place. Oil-in-place is the petroleum that exists originally in naturally occurring accumulations, discovered and undiscovered, before production begins. However, the discovered oil was of high viscosity and density, and only 9% was found to be actually recoverable and potentially able to yield 18 million barrels of actual oil production for sale and use. Politically, the President of the country had staked his national policies on the cited one billion barrels by multiplying that quantity by the then current price of crude oil of US$ 50 per barrel. Thus, he contemplated having a massive US$ 50 billion contribution to the nation’s economy, and maintaining his popularity and position based on such. He told the people that the country would become a member of OPEC and everyone would have cheap gasoline and diesel. However, the reality was that the discovered recoverable 18 million barrels was quite difficult to win from the ground and the development and operating costs amounted to US$ 30 per barrel, leading to a net value of subsequent oil production being only US$ 20 per barrel for a total value of just US$ 360 million. The President then realised that the Government’s Production Sharing Contract more or less allowed the oil companies to keep 50% of the net value of the produced crude, so his government got just US$ 180 million. And this was spread out over twenty years providing an average income to the Government of just U$ 9 million per year, a far cry from the spectacular windfall of US$ 50 billion. The President was accused of misleading the people and was not re-elected in subsequent national elections. There is no need for such grave errors. It is the duty of the petroleum technocrat, specialist or expert, be he or she: an adviser, a government official, or a company official to advise non-technical people appropriately, and with great caution. Politicians and others have their expertise, and we petroleum folks have ours; it is our job to communicate our findings to others with professional care and diligence. In one West African nation, the author once had to tell the President’s Adviser that she was not qualified to talk about the potential oil reserves that some international company had been promoting to her boss, making the President overly exuberant and excited about future oil production. She was alarmed and annoyed when told that the country had no petroleum reserves, but only prospective petroleum resources that had yet to be discovered, may be. Some ten years later, those wells have yet to be drilled, and the country still has no proven oil reserves. On another occasion in Papua New Guinea, when Chairing the Opening Ceremony of the Second PNG Petroleum Convention in May 1993, the author had to carefully and cautiously advise the then Prime Minister, the Rt. Hon. Paius Wingti, PC (next to whom, the author was sitting) that the enormous Indonesian gas reserve figures being talked about by our guest keynote speaker, Ir. Suyitno Patmosukismo, the then Director General of Indonesia’s Ditjen MIGAS, (an abbreviation for Minyak dan Gas Bumi, or Oil and Gas, and the State regulator of oil and gas) were not actual proven recoverable volumes of gas, but probabilistic estimates of potential undiscovered resources.  This put our modest, but conservatively estimated proven recoverable gas resource identified by that time in perspective, and we felt less humbled! The Prime Minister was grateful, and the author had done his duty.   Figure 4: Extract from the Programme of the Second PNG Petroleum Convention, May 1993 The mainstream media (newspapers, television and radio) often make mistakes in talking and writing about oil and gas resources and reserves, often needing specialist technical correction after promoting public misunderstanding. Sensational news sells better, one supposes.  I shall not dwell on the many inaccuracies of social media in these matters. Within the petroleum industry, we may also sometimes find speculation, especially by smaller oil and gas exploration companies that wish to talk up the petroleum resource potential of their exploration areas. Often this is done to make investment in their company seem more attractive. Whilst the larger integrated international oil and gas companies do not need to play such games, there are times when they might exaggerate the potential of undrilled leads and prospects to the non-technical minds of political leaders in an attempt to persuade them to consider favourable treatment and regulatory actions.   Petroleum Resources Management System The petroleum industry has rules about such matters. The systematic reporting of petroleum resources has been developed progressively over nearly one hundred years.  Today, the Petroleum Resources Management System (PRMS) is highly developed, and subject to regular revision and update. It is published by the Society of Petroleum Engineers, and its Oil and Gas Reserves Committee. It has wide industry input and sponsorship from other industry organisations, such as the World Petroleum Council (WPC), and the American Association of Petroleum Geologists (AAPG), among others. The PRMS provides a consistent approach to estimating petroleum quantities, evaluating projects, and presenting results within a comprehensive classification framework.   Petroleum First of all, we need to be sure of what we are talking about.  Petroleum is defined as a naturally occurring mixture consisting of hydrocarbons in the gaseous, liquid, and or solid state. Petroleum may also contain non-hydrocarbons, common examples of which are carbon dioxide, nitrogen, hydrogen sulphide, and sulphur, and in rare cases, non-hydrocarbon content can be greater than 50%. Interestingly enough, in Papua New Guinea, although the definition of petroleum is more or less the same, the Oil and Gas Act simultaneously refers to helium alongside petroleum.  Helium was found in both the Barikewa 1 and Iehi 1 wells drilled respectively in 1958 and 1960 by Island Exploration Company and the Australasian Petroleum Company. Albeit in relatively low concentration of only about 0.1% in the discovered natural gas stream, it may one day yet have commercial value if the gas from these fields is ever produced for LNG production.   Petroleum Resources The term petroleum resources is used to encompass all quantities of petroleum both recoverable and unrecoverable naturally occurring in an accumulation on or within the Earth’s crust, discovered and undiscovered, plus those quantities already produced. Further, it includes all types of petroleum whether currently considered conventional or unconventional.   Petroleum Reserves Petroleum reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must satisfy four criteria. They must be discovered, recoverable, commercial, and remaining (as of the evaluation’s effective date) based on the development project(s) applied. Reserves are recommended as sales quantities as metered at the reference point. Where the entity also recognises quantities consumed in operations as reserves these quantities must be recorded separately. Non-hydrocarbon quantities are recognized as reserves only when sold together with hydrocarbons or volume consumed in operations associated with petroleum production. If the non-hydrocarbon is separated before sales, it is excluded from reserves. Reserves are further categorized in accordance with the range of uncertainty and should be sub-classified based on project maturity and/or characterised by development and production status. The PRMS summarises this in its Resource Classification Framework. The horizontal axis reflects the range of uncertainty of estimated quantities potentially recoverable from an accumulation by a project, while the vertical axis represents the chance of commerciality, which is the chance that a project will be committed for development and reach commercial producing status.   Figure 5: Resources Classification Framework, after the Petroleum Resources Management System (PRMS) of the Society of Petroleum Engineers.   Proved, Possible and Probable Reserves In dealing with uncertainty of petroleum reserves, the PRMS classically uses the terms: proved, probable and possible.   Proved reserves are those quantities of petroleum that, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable from known reservoirs and under defined technical and commercial conditions. If deterministic methods are used, the term “reasonable certainty” is intended to express a high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90% probability that the quantities actually recovered will equal or exceed the estimate. Probable reserves are those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves, but more certain to be recovered than Possible Reserves. It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus Probable Reserves (2P). In this context, when probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the 2P estimate. Possible reserves are those additional Reserves that analysis of geoscience and engineering data suggest are less likely to be recoverable than Probable Reserves. The total quantities ultimately recovered from the project have a low probability to exceed the sum of Proved plus Probable plus Possible (3P) Reserves, which is equivalent to the high-estimate scenario. When probabilistic methods are used, there should be at least a 10% probability that the actual quantities recovered will equal or exceed the 3P estimate. Of course, to be presented as a reserve the petroleum in question has to be discovered, recoverable, commercial, and remaining to be recovered based on a scheme of development to be applied. Where petroleum accumulations fall short of these criteria, they are generally considered to be contingent resources.    Commerciality Discovered recoverable quantities of petroleum or contingent resources may be considered commercially mature, and thus attain reserves classification, if the entity claiming commerciality has demonstrated a firm intention to proceed with development. This means the entity has satisfied its internal decision criteria. This is typically the rate of return at or above the weighted average cost-of-capital or the hurdle rate. Commerciality is achieved with the entity’s commitment to the project and all of the following criteria: Evidence of a technically mature, feasible development plan. Evidence of financial appropriations either being in place or having a high likelihood of being secured to implement the project. Evidence to support a reasonable time-frame for development. A reasonable assessment that the development projects will have positive economics and meet defined investment and operating criteria A reasonable expectation that there will be a market for forecast sales quantities of the production required to justify development. There should also be similar confidence that all produced streams (e.g., oil, gas, water, CO2) can be sold, stored, re-injected, or otherwise appropriately disposed. Evidence that the necessary production and transportation facilities are available or can be made available. Evidence that legal, contractual, environmental, regulatory, and government approvals are in place or will be forthcoming, together with resolving any social and economic concerns. One might consider the current status of the Elk-Antelope gas field which is to be developed for production gas as feedstock for processing as liquefied natural gas (LNG) by the renowned international oil and gas company, TotalEnergies. In the context of the PRMS, the petroleum of the Elk-Antelope gas field is on the brink of becoming commercial, and thence considered as petroleum reserves. The PRMS nicely demonstrates the transition of contingent resources where development is pending to reserves justified for development and then approved for development. The fields currently contributing gas to the PNG LNG Project clearly have proved reserves which are either currently being produced or are to be produced.  As such fields continue to produce gas their proved reserves are systematically depleted by that production. We term production as the total cumulative quantity of petroleum that has been recovered at a given date. Proved reserves may be replenished as the operating company obtains more and more information about the petroleum accumulation it is producing and their reservoirs.  Reserves which previously had less certainty of recovery may migrate from the possible reserve category to the probable reserve category and likewise from the probable category to the proved category.  This is not a certainty, but the phenomenon of reserve creep is often realised as production continues, reservoir knowledge and understanding of its behaviour are amassed and field experience expands, but not always. There can be equally disappointing outcomes.   Figure 6:  Sub-classes of petroleum based on project maturity, after the Petroleum Resources Management System (PRMS) of the Society of Petroleum Engineers.     Plays, Leads, and Prospects Oil companies will talk of checking out a play. A play is a geological argument used to justify exploration for hydrocarbons. Critical geological ingredients may be present in an area that may encourage the notion that petroleum accumulations might have formed within the subterranean strata.  A sedimentary basin may have developed sometime in geological history within the strata of which buried organic material may have matured into oil and gas. The petroleum geologist will have ideas of possible trapping mechanisms which may have caused any generated petroleum to have accumulated in geological traps which would necessarily have to be formed before the petroleum migrated due to its buoyancy.      Geological, geophysical and geochemical are undertaken to identify potential structural trends which may provide potential traps. These are often called leads.  When such leads are examined more closely to ascertain that they meet all the criteria for formation of a petroleum accumulation, prospects may emerge which may be worthy of drilling to determine whether there might be a petroleum accumulation worthy of commercial production. Oil companies will drill their best and largest prospects with the hope of finding oil and gas. Alas, all parameters for the formation of an accumulation have to be present and with the correct timing, so often drilling is not successful. Subtleties of geological history and evolution of the geology of the area may preclude the prospect from bearing hydrocarbons. Sometimes perseverance is required as the drilling of several prospects provides more specific geological knowledge of the area, and eventually a discovery is made. There are so many cases where companies have drilled a series of well unsuccessfully, only to have a pleasant surprise eventually with a late discovery.    Figure 7: Plays, leads and prospects, after Sabrine Berkat, ALNAFT, Algeria.       Appraisal Once a discovery is made, the question everyone asks is, “How big is it?” This is a simple, but daunting question.  A typical petroleum prospect in Papua New Guinea might need to be of considerable size to justify and warrant it being drilled in the first place. Take for example, the Iagifu prospect of the Iagifu-Hedinia oil field, in production since 1992 as part of the Kutubu Project. Its pre-drill prospect structure was approximate 6 kms long by 3 kms wide, and ellipsoidal in shape covering an area of about 56.5 square kilometres.  Consider that the drill bit that first entered the oil-bearing Toro Sandstone reservoir at 2,430 metres depth in the well was just 12-1/4 inches in diameter, or only 0.076 square metres or 760 square centimetres in area. That bit probed only just over five billionth parts of the prospect, a minute portion of the prospect indeed. A discovery is nice, but it does not make a field. Sometimes there is not even a defined accumulation, if the discovery cannot be delineated or appraised by further drilling to map out the lateral extent of the accumulation across the geological structure which formed the prospect. There was an extraordinary discovery called Makas 1-X, which was drilled in the 1990s and which allegedly found an oil-bearing sandstone. The well ran into technical difficulties and had to be re-drilled, but when that new well encountered the reservoir sandstone, it was barren of oil. In this instance, appraisal refuted the supposed discovery. Appraisal seeks to probe the full extent of a newly-discovered petroleum accumulation by the drilling of more wells into the prospect. This is done to gauge whether the accumulation contains enough petroleum to be able to sustain production on a profitable commercial basis. It is an important critical stage of petroleum development. The drilling of further wells on a discovery has to be encouraged and promoted, and if necessary, government regulators need to ensure it takes place.    Figure 8: An early post-discovery depth map of the top of the oil-bearing Toro Sandstone reservoir over the Iagifu and Hedinia anticline, after Paul Lamerson, Chevron, 1988.     The operating petroleum company may not wish to spend precious financial resources on appraisal immediately. It may have other competing or urgent investments.   The Papua New Guinea legislation does not define the term appraisal of a discovery, but appraisal of a petroleum discovery is included in the rights of petroleum prospecting licensee. However, the government may direct the licensee to do such things as are thought necessary including the completion of wells, the conduct of drill stem or extended production tests for appraisal of a discovered petroleum accumulation. More specific appraisal requirements are contained either in legislation, licence conditions or production sharing agreements elsewhere.  The Papua New Guinea Oil and Gas Act does enable the declaration of what is known as a Location over the specific block within which a discovery is made, and up to eight adjoining blocks (a block is 5 minutes latitude by 5 minutes longitude, or about 81 square kilometres at the latitudes of Papua New Guinea). The declaration of a Location enables some degree of retention of the licence area by the discoverer, but also importantly triggers the ability of the Government to  require various investigations and studies as to assess the feasibility of the construction, establishment and operation of an industry for the recovery of petroleum from the location, particularly technical and economic feasibility studies relating to the recovery and transport of petroleum from the location and processing of the petroleum.   Estimating the Resources Once a petroleum accumulation has been found and appraised by the drilling of further wells which have shown that the petroleum can flow to the surface, the next big question is the size of the accumulation. Essentially, size of the accumulation it is a matter of size of the reservoir, and that in turn depends on the size of the geological structure that may have formed the trap within which the petroleum got trapped and has been found. Quite simply, the more petroleum bearing rock there is, the more petroleum will be in-place; we call this the bulk rock volume.  In simple terms, this is the area of the reservoir times its thickness, though complexities of the geological structure and its shape make this considerably more complicated.  Now, we must remember that in a conventional petroleum reservoir, the petroleum is located in the pores within the rock, a bit like water in a sponge. So, determining the porosity of the reservoir rock is a fundamental factor that has to be measured. A sample of rock can be obtained from the well and physical studies can be made of it to ascertain its porosity as a percentage of the rock, or electronic tools can be lowered into the well to measure physical properties of the rock from which its porosity may be calculated. Within the subsurface rock strata, water abounds, remnant from the time of deposition. When petroleum accumulates in a porous reservoir rock it, displaces the water, but not perfectly or completely. There is always some water left behind. Accordingly, a portion of the porosity of the rock still contains water depending on local subsurface geological condition.  Again, measurements can be made of the reservoir rock in situ by special electronic tools to ascertain what percentage of the pores is filled with water, and what percentage is filled with petroleum.  This, we call the water saturation. When petroleum flows to the surface from a reservoir, it is moving from a location of high pressure and somewhat elevated temperature to standard atmospheric conditions. Oil containing gas will shrink as it rises up the well to ambient conditions as the gas comes out of solution. There is also some shrinkage due to temperature change effects and expansion due to pressure relief.  This volume change is called the shrinkage and is expressed as the formation volume factor, the ratio of the volume of petroleum at reservoir conditions to the volume at surface conditions. It typically ranges from 1.0 to 3.0.  In the case of gas, as it flows up the well, it will expand in classic response to the decrease in pressure and temperature from subsurface reservoir conditions to surface conditions.  The gas formation volume factor is generally much lower, ranging from 0.001 to 0.01 reservoir volume per surface volume. Multiplying these factors together, in broad terms, we get: Volume of petroleum at surface = bulk rock volume x porosity x (1-water saturation)/formation volume factor      This is what we call a volumetric method, which is adequate in cases where we have some idea of rock and fluid parameters. It is generally used in early stages of appraisal of an accumulation.  Other methods are the material balance method in which the tracking of pressure changes is used to estimate remaining reserves, and decline curve analysis, which uses field production data trends to predict future output. Of course, this discussion is quite generalised, and there are many intricacies and additional dependencies.   Figure 9: Classical methods of petroleum reserve analysis after petroleum concepts on Instagram Petroleum is normally a complex mixture of many different hydrocarbons. Oil most often contains hydrocarbon gases in solution and natural gases contain liquid hydrocarbons in solution. Also, rarely are reservoirs undisturbed and quite often the very tectonic forces that created the geological structure within which the petroleum has been trapped may cause intricate faulting of that reservoir. This can often spoil the continuity of the reservoir and effectively break it up into many small pieces of reservoir some of which may not have been able to be charged with oil or gas.   This often only becomes evident when infill drilling between the discovery and appraisal wells demonstrates such discontinuities. Faults identified in the wells within the reservoir rocks indicate localised tectonic displacement and what is called compartmentalisation.  This is the case in the Kutubu oil fields which then required very careful placement of production wells to tap the oil-bearing parts of the reservoir. Sometimes water enters the petroleum bearing reservoir and flushes the hydrocarbons out of place leaving behind only a residual viscous smear of the original oil charge of the reservoir and the flushing waters.  Such was the case in the Toro sandstone reservoir of the large Mananda anticline which showed excellent signs of bearing oil, but the primary charge had been flushed away leaving only a non-recoverable residue.  In some reservoirs, the porosity of the reservoir varies laterally due to changes in the original depositional environment of the sediments, or later mineralogical or chemical changes.  The amount of water remaining in the reservoir pores can vary across a field, and hence the degree of fill of that porosity by hydrocarbons.   As one may realise, the assessment of the original oil-in-place or original gas-in-place can become quite tricky.  Then, there is one more factor that is absolutely necessary for the oil and /or gas to flow into the well bore; that is permeability.  Permeability is the ability of a porous material (such as rock) to allow fluids (either liquids or gases) or gases to flow through it. Permeability measures how easily fluids flow through the interconnected pores under pressure. High permeability allows easy flow, while low permeability restricts flow. The majority of rocks (more than 93%) have very little permeability and a small amount (2%) have fair to good permeability, the balance are considered to be poorly permeable or tight. From the 2% permeabilities range from 1 to 1000 milliDarcies (mD, the unit of permeability named after Henri Darcy).  In the Hides gas field, the reservoir permeabilities of the Toro Sandstone reservoir range from 3 to 2,000 mD with the bulk of readings being between 30 to 150 mD.  Such permeability would be said to be good. Both permeability and porosity are related and in the Hides gas field Toro reservoir, permeability broadly scales with porosity which ranges between 2% to 18%.   Recovery Factor It is good to have an accumulation full of hydrocarbons in a porous and permeable reservoir, but those hydrocarbons still need to be able to get to the surface to be able to be sold. They need to be recovered as oil and gas production. Exactly how much oil and/or gas may be recovered from a reservoir by production is not so easy to estimate.  For oil and gas to flow into a wellbore from a reservoir rock and flow to surface requires energy. The flow has to combat gravity and frictional forces to get to the surface. So quite obviously the higher the pressure of the reservoir and the less viscous the petroleum is, the better it will flow.   Measurements of reservoir pressure are therefore most important.  In a gas field, the natural gas will fill its container, the reservoir and pressure within the connected reservoir will equilibrate.  As the gas is produced, the reservoir pressure will decrease just like a balloon deflating until such time as there simply is not enough pressure to force the gas out of wellbore. That then is the technical end of production. A crude estimate of the recovery factor of a gas field may be expressed as 1 minus the reservoir pressure at abandonment divided by the initial reservoir pressure. Typical gas fields have high recovery rates of between 50% to 80%.   Figure 10: Recovery factor versus depth of gas fields outside the USA with larger than 1 trillion standard cubic feet of gas in place, after Jean Laherrère, International Energy Agency. Of course, gas fills its container and has a very low viscosity; oil is quite different. It is viscous, a liquid and hence moves much more slowly.  It does not fill its container as gas does. When a well penetrates an oil-bearing reservoir, the oil has to flow toward the borehole in response to a decrease in pressure caused by the well’s penetration into the reservoir.  As the pressure differential between the wellbore and reservoir decreases with time, the oil becomes more and more sluggish.  Lighter density oils move easier, but heavier density oils have a hard time. The amount of gas dissolved in the oil very much affects the ability of the oil to flow out of the well because as the pressure is relieved, the gas bubbles out of solution (just like opening a Coca Cola bottle) frothing up the oil and making the oil flow lighter and easier to ascend the well.  The amount of gas contained per barrel of oil in solution is known as the gas-oil ratio.  In the case of the Kutubu fields, the oil was very gassy from the beginning, and so recovery of the oil was much easier.  Indeed, there was so much gas produced with the oil that for many years the gas was reinjected back into the reservoir to help push the oil to surface. In this way, it was also effectively conserved until it too could be produced in the current PNG LNG Project.  Some oil-bearing reservoirs are linked in the subsurface to active aquifers which provide additional energy to help maintain the reservoir pressure for a longer period of time.  Petroleum engineers and production geologists quite often devise water injection schemes to aid oil recovery in which massive amounts of water are pumped into the water lying below the oil to help it flow to the production wells. This is called water flooding. Whilst the extent of gas recovery from a reservoir is more fundamentally connected to the change of reservoir pressure, the extent of oil recovery is not so readily estimated. Elaborate reservoir models may be built describing the reservoir rock, reservoir fluids and their parameters to create simulations of flow through an array of production wells.  These simulations can be correlated to actual flow of wells when tested and an overall assessment of likely recovery scenarios made. Typical oil recovery rates are between 5% to 50% of the original oil-in-place, with an average often cited of around 30% to 35%. Secondary recovery techniques like water flooding and gas injection enhance recovery to between 30 to 40%. Enhanced oil recovery (EOR) techniques may significantly increase recovery by the injection of heat, gases, chemical to reduce viscosity and improve flow, but this comes at a cost.      Figure 11: Recovery factor of 800 oil fields outside the USA, after Jean Laherrère, International Energy Agency   Ultimate Recovery As one produces a field, be it an oil field or a gas field, the resources that were estimated to be in place at the beginning of production are steadily depleted. The extent of the recoverable reserves is reduced by every additional amount of production, so the reserves of a field decline. Those reserves that have been recovered and those that may yet be potentially recovered are referred to as the estimated ultimate recoverable reserves of the field. This is the ultimate measure of the total potential commercial output of a field. To talk of the reserves of a particular petroleum province and its fields one can only project into the future as those resources that were once reserves and have been produced are no longer such. The estimates of reserves are estimates of the volumes of oil and gas that may be commercially recovered henceforth. A common measure of the utility of such reserves is the reserve-to-production ratio (R/P ratio). This estimates how many years the oil or gas will last at current production rates. It is calculated by dividing remaining proven reserves by the annual production rate. A higher R/P ratio indicates more years of supply remaining. If one looks at the Statistical Review of Global Energy, the last edition that examines the R/P ratio was in 2020 providing statistics up to the start of Covid.  Oddly, after that BP and then the new owners of this great and useful report found it necessary to omit the listings of oil and gas reserves and with that, the comparative R/P ratios, perhaps to mollify the notion that a world in energy transition would still be producing oil and gas for decades to come.  Of course, circumstances change as we have seen in the dramatic actions of some nations in the first quarter of 2026.  The picture is clear; a select few countries dominate oil production now and in the longer term. Their ability to produce oil into the foreseeable will depend on their access to markets, which if denied may render their reserves to be purely technical.   Country Proved Reserves (Billion Barrels of Oil) R/P Ratio (Years) Canada 169.7 82.3 Iran 155 120.6 Iraq 145 83.1 Kuwait 101.5 83.1 Russia 107 25.5 Saudi Arabia 297.6 68.9 USA 68.9 11.1 Venezuela 303.8 906.7 Total World 1,733.9 49.9 Figure 12:  Reserve-to-production ratios of countries with more than one billion barrels of proved reserves and the USA as at pre-Covid pandemic in 2019 after Statistical Review of Global Energy. A similar story can be told for natural gas reserves. It is with respect to natural gas that Papua New Guinea earned a row in the statistics of the Statistical Review of Global Energy, having an assessed 0.2 trillion cubic metres of gas as proven reserves and an R/P ratio of 14.2 years.  Papua New Guinea has been producing oil and gas since 1991 when the Kutubu Project produced its initial oil as feedstock for the Project refinery and the Hides Project produced its initial gas as feedstock for the Porgera mine power plant. In 1992, full scale oil production began at Kutubu and in 2014 large scale gas production at Hides for the PNG LNG Project commenced. Papua New Guinea’s discovered oil and gas fields are listed below together with their estimated ultimate recoverable resources and reserves, which includes production to date and remaining resources and reserves. Field Name(s) Year of Discovery Current Licence Current Operator Estimated Ultimate Recoverable Oil Resources and Reserves Estimated Ultimate Recoverable Gas Resources and Reserves         Million barrels  2C & 2P (incl. condensates & LPGs) Billion cubic feet 2C & 2P Barikewa 1958 PRL 49 Kumul Petroleum   439 Bwata 1960 PRL 39 ExxonMobil   68 Cobra & Iehi 1960 PRL 14 Santos   72 Uramu 1968 PRL 60 Kumul Petroleum   92 Pasca 1968 PPL 328 Twinza 90 464 Juha 1983 PDL 9 ExxonMobil 29 578 Kutubu 1986 PDL 2 Santos 337 1733 Hides 1987 PDL 1 ExxonMobil 159 6938 Pandora 1988 PRL 38 Kumul Petroleum   644 Agogo 1989 PDL 2 Santos 59 541 Angore 1990 PDL 8 ExxonMobil 13 1079 Elevala & Ketu 1990 PRL 21 TWL Energy 40 640 P'nyang 1990 PRL 3 ExxonMobil 78 4600 SE Gobe 1991 PDL 3 Santos 46 156 Gobe Main 1993 PDL 4 Santos 31 159 Paua 1995 PPL 378 Giri Energy 17   Moran 1996 PDL 2&5 Santos 20 344 Stanley 1999 PDL 10 TWL Energy 12 399 Kimu 1999 PRL 48 Kumul Petroleum   525 Triceratops 2005 PRL 39 ExxonMobil 2 30 Douglas 2006 PRL 40 TWL Energy 30 500 Pukpuk 2006 PRL 40 TWL Energy 0 365 Elk-Antelope 2006 PRL 15 TotalEnergies 64 6200 FlInders & Hagana 2006 PRL 41 Santos   1100 Ubuntu 2011 PRL 28 TWL Energy 4 100 Muruk 2016 PPL 402 Santos   845    Summations 1031 28611 The summations are pseudo-summations only, not statistical aggregations and should be used as a guide only Figure 13: A list of oil and gas field discoveries in Papua New Guinea and their estimated ultimate recoverable resources and reserves (2C and 2P respectively) after David Manau, Secretary, Department of Petroleum and Energy (now Managing Director, National Petroleum Authority) modified and amended by the author from public information. The extent of the future discovery of Papua New Guinea’s petroleum resources will depend entirely on investment in exploration and the necessary drilling of valid prospects.  In turn, the extent of reserves will depend on investment in development where production of those reserves may be assessed to be commercial.  Without such further investment, we can only produce those resources and reserves that are remaining until they are depleted to the extent that we can, given considerable infrastructure limitations.   Only successful exploration including the vital drilling of exploration wells will allow the above table to be augmented with Papua New Guinea’s yet to be found petroleum resources and reserves.   Word = 6,927    

Westpac PNG is proud to announce the 21 finalists for the 2026 Westpac Outstanding Women's Awards, recognising women who are making a meaningful impact across Papua New Guinea through leadership, service, innovation, and community impact. For more than 100 years, Westpac has stood alongside the people of the Pacific, supporting communities, creating opportunities, and investing for the long term. The Westpac Outstanding Women's Awards are part of this ongoing commitment. Selected across seven award categories, this year's finalists represent a diverse group of women whose contributions are helping communities grow, businesses succeed, and industries progress across the country, creating lasting impact today and for generations to come. The announcement of the finalists marks the next stage of the 2026 awards programme, leading up to the awards ceremony on Saturday, 25 July 2026, in Port Moresby. Winners from each category will be announced on the night, together with the Overall 2026 WOW Award winner, recognising a woman whose leadership and impact stand out across all categories. The finalists by category are: Entrepreneur: Judy Ejampi, Martha Raka, and Sylvia Pascoe Private: Orpah Peter, Rita Karaie, and Stella Ipang Not-for-Profit: Naomi Longa, Jacqueline Mary Boga Garoau, and Sr. Bolena Azimo Public: Debra Sungi, Elizabeth Tandoa, and Fiona Gesa Sports & Arts: Edith Monagi, Susanne Sere, and Wosi Kaeyo Sustainability: Deborah Yassa Yulu, Emma Oliver, and Kiteni Kurika Young Achiever: Getta Kambar, Naomi Dubabagi, and Zimmah Neinaka Tamzin Wardley, Chairwoman of the Westpac PNG Board, said: "The WOW Awards are a powerful reminder of the leadership, resilience, and service women bring to every part of Papua New Guinea. This year's finalists reflect the strength of women who are driving progress in their communities, workplaces, and industries." Each category winner will receive a PGK 5,000 grant to support their continued work and impact. Emma Low, Managing Director for Westpac Pacific, said: "For more than a century, Westpac has stood alongside Pacific communities, and these awards are one way we continue that commitment. By recognising and supporting outstanding women, we are helping create opportunities that can carry forward for generations." Westpac PNG Chief Executive Andrew Cairns said: "These finalists show what is possible when talent, determination, and purpose come together. Their achievements are not only inspiring others today, but they are also helping build stronger communities and a more inclusive future for Papua New Guinea." In the lead-up to the event, finalist profiles will be shared across Westpac's channels to celebrate their achievements and the work they are doing to help drive progress across Papua New Guinea.

The PNG Chamber of Resources and Energy (PNG CORE) President Anthony Smaré has formally acknowledged Prime Minister James Marape's acceptance of the invitation to officially open PNG Resources Week 2026 on 13 July at APEC Haus. PNG Resources Week 2026 will be held from 13 to 16 July at APEC Haus in Port Moresby. Hosted by PNG CORE, the premier annual event brings together government officials, industry leaders, and host communities to discuss national content, project pipelines, and sustainable development. The accompanying PNG Resources Golden Exhibition will continue until Saturday, 18 July. Themed "PNG Resources Beyond 50," the event reflects the partnership between the Government and the nation's energy, mining, and resource sectors as Papua New Guinea looks towards the next 50 years of development. "I sincerely commend PNG CORE for its strong leadership in fostering strategic dialogue within our resources and energy sectors, which continue to serve as critical pillars of our national economic development," Prime Minister James Marape said. "I look forward to delivering the opening address to mark the commencement of this important event." Smaré said Marape's participation in key platforms such as the Community Affairs and National Content Conference and Exhibition (CANCONEX) and the PNG Resources Summit demonstrates the Government's commitment to inclusive development, landowner empowerment, and sustainable industry growth. PNG Resources Week will begin with CANCONEX, which runs from 13 to 15 July. The conference will feature discussions on national content and success stories, community investment projects, and renewable energy, climate, and the energy transition. The PNG Resources Summit, to be held on 16 July, will focus on Papua New Guinea's economic outlook and updates on new resource projects. It will be followed by the PNG Resources Summit Gala Dinner, which will feature the Legacy and Industry Recognition Awards. The PNG Resources Golden Exhibition will run from 16 to 18 July at APEC Haus and will showcase career opportunities for the next generation. The exhibition will be open to the public from 17 July. PNG Resources Week serves as a strategic domestic platform for stakeholders from across the country to discuss developments in the resources sector, its economic contribution, and community development initiatives.