Latest News

The Port Moresby Chamber of Commerce & Industry (POMCCI), in collaboration with Deloitte, hosted the Papua New Guinea 2025 Budget Breakfast, provided key insights into the budget and highlighted its implications for businesses and opportunities for the private sector. The breakfast meeting was held on November 4, at the Hilton Hotel in Port Moresby. Amongst the economists present to discuss was Deloitte Partner, Tax and legal, Andrew Harris, in his presentation, outlined key measures on revenue projections, tax adjustments, and household assistance initiatives. Andrew emphasized the significance of the New Income Tax Act as a once-in-a-generation legislative overhaul. Businesses, individuals, and tax professionals are urged to familiarize themselves with the changes to the evolving tax reform effectively. The event also featured a panel discussion with insights underlining the importance of fostering collaboration between the public and private sectors to sustain economic progress in the country. PNG Records Steady Economic Growth Despite Global Challenges: Prior to the Penal Discussion, Dr. Kishti Sen, International Economist at ANZ, delivered a detailed presentation on PNG’s economic outlook. He began by analyzing the country’s economic performance over the past three years, emphasizing how external factors like commodity prices have driven growth despite the absence of major projects, even in the face of global economic challenges and the Covid-19 pandemic according to Dr. Sen, who presented the latest national accounts data.  Dr. Sen revealed that Papua New Guinea's economy grew by 3% in 2023. He said this follows an even stronger growth of 5.7% in 2022, revised upward from an initial estimate of 5.2%. In contrast, the economy contracted slightly by 0.5% in 2021, reflecting the height of the Covid-19 pandemic. Dr. Sen emphasized the significance of this upward trend, "Minus 0.5% in 2021, which was a pandemic year — a recession, but only by a little bit. Then you come out of the recession, post a very strong 5.7%, and go into 2023 with another positive 3%. No major projects happening, yet the economy is still growing.” He attributed part of this growth to increased government revenue from the liquefied natural gas (LNG) sector. LNG taxes soared from $115 million USD in 2021 to $1.2 billion USD in 2022, boosting the government's consolidated revenue. This windfall enabled the government to maintain its 2022 budget without cutting expenditures or increasing borrowing. The agricultural sector also played a crucial role. Farmers benefited from higher prices for key exports like coffee and palm oil, which translated into increased consumer spending. This was reflected in a 6.8% rise in the retail and wholesale trade sector in 2022. “The national income rose sharply due to these price surges, supporting economic growth despite limited project activities,” Dr. Sen said. Interestingly, inflation remained relatively under control in 2022, even as other countries grappled with rising prices. Dr. Sen concluded that the combined effect of increased government revenue and agricultural prosperity helped sustain the country’s economic momentum. Discussing inflation, Dr. Sen expressed concerns over the outdated weights used in PNG’s consumer price index (CPI), based on a 2008 household income survey. He suggested that actual inflation could be higher than official figures due to rising food prices and currency depreciation. “The currency is expected to depreciate until early 2026, potentially reaching 24.4 cents per US dollar. This depreciation, coupled with reduced farm incomes, is likely to push prices higher,” he warned. Dr. Sen with support from the data he presented, urged the government to intervene more aggressively in the foreign exchange market, leveraging the country’s high foreign reserves. Turning to fiscal policy, Dr. Sen praised the government’s commitment to its 10-year budget repair plan. “The goal remains achieving a budget surplus by 2027 and paying off all debt by 2034,” he stated. He said the importance of disciplined execution and expressed cautious optimism that private sector-led growth could support the government’s fiscal goals if major projects commence by 2026. “Whenever something goes wrong, there seems to be a positive offset, whether it’s a boom in energy prices, coffee, or palm oil,” he observed. He remained hopeful for stronger growth post-2026, contingent on major projects materializing. Panel Discussion, Experts Weigh in on Economic Challenges and Opportunities: Maygen Turlin from Deloitte chaired an interesting discussion with Khwima Nthara, Country Manager for the World Bank Group in PNG, Kishti Sen, Senior Economist at ANZ, and Paul Flanagan from the Office of Treasury. The discussion gave insights into the PNG 2025 national budget and its ambitious goal of achieving a budget surplus by 2027. Achieving a Budget Surplus by 2027: Is It Realistic? Addressing the budget’s feasibility, Mr. Nthara expressed cautious optimism. He pointed to PNG’s declining budget deficit trend—from 8.9% of GDP in 2020 to a projected 2.2% in the latest budget. However, he emphasized the need for fiscal discipline and enhanced revenue generation through public-private partnerships, especially in critical sectors like energy infrastructure. Mr. Sen echoed similar sentiments, stressing that achieving the surplus depends on reducing fiscal deficits while fostering private sector-led growth. He said that overcoming challenges like foreign exchange shortages would be crucial for expanding PNG’s non-resource economy, which includes sectors such as agriculture, manufacturing, and services. The government’s tax reforms, including a GST zero-rating for essential goods and adjustments in housing taxes, are expected to reduce revenue by 210 million Kina. Representing the Office of the Treasurer, Paul Flanagan, in a personal capacity, discussed strategies to offset these losses. He pointed to expected economic growth, enhanced tax compliance, and inflation-driven revenue gains as key factors supporting the government’s fiscal goals. Strengthening the Financial Sector Amid Grey-Listing Risks: The panel also addressed the grey-listing of PNG by the Financial Action Task Force (FATF) in 2014 and later removed in 2016. Nthara warned of potential disruptions in international banking relationships, which could hinder foreign investment. He urged the government to strengthen anti-money laundering regulations and implement a clear action plan. The Bank of PNG is reportedly taking proactive steps, with international support, to address these concerns. While the panelists acknowledged significant economic challenges, they agreed that with continued fiscal reforms, targeted investments, and enhanced governance, PNG’s economic prospects remain promising for 2025. The discussion underscored the importance of public-private collaboration, strong financial regulation, and a consistent policy framework to achieve sustainable economic growth.

Mayur Resources Limited (Mayur) is pleased to announce the signing of a Binding Term Sheet Agreement with Pacific Unison Holdings Limited (PacUn) to complete the first development phase of the Orokolo Bay Industrial Sands Project (OBP) in Papua New Guinea. Under the binding agreement, PacUn has committed to fully fund the construction and commissioning of the magnetite phase of the OBP to achieve an initial nameplate capacity of 500,000 tonnes per annum of magnetite concentrate with markets in China, Japan and North Queensland. 1 Highlights: Fully Funded Development: PacUn will cover all development costs associated with but not limited to site infrastructure, processing plant construction, and initial working capital requirements, amounting to an investment of up to US$10 million to enable the magnetite phase of the OBP to be constructed and first shipments to take place. Upfront Payment: An upfront Commitment Fee of US$500,000 has already been paid to Mayur upon signing the Binding Term Sheet. Profit-sharing Regime: Agreement first allows both parties to recover their sunk capital costs during the investment recovery phase, and then will see profits being shared on a 50/50 basis Initial production 3Q CY25: Initial production targeted to commence in the third quarter of calendar 2025 subject to long lead orders being placed during Q1 CY2025 PacUn takes construction and operational role: PacUn’s recognises the +10 years of investment made by Mayur that will now see the project be developed without the need for Mayur to contribute further capital. PacUn also takes on the construction and operational roles in managing the development allowing Mayur to remain focussed on its primary Central Lime and Cement Projects About the Orokolo Bay Project The OBP, situated within Mining Lease 541 (ML 541) and Exploration Licence 2305 (EL 2305), is a flagship project within Mayur's iron and industrial sands portfolio. The project is fully permitted and construction-ready, with initial production targeted to commence late calendar 2025. Paul Mulder, Managing Director of Mayur Resources, said: “Whilst Mayur has already taken a Final Investment Decision to proceed with the Orokolo Bay Project, we have been working on the most appropriate funding structure to best deliver the Orokolo Bay Project. By partnering with Pacific Unison Holdings, we have taken a pivotal step towards realising the potential of the Orokolo Bay Project being the first Industrial Sands operation in PNG. The upfront performance bond payment already received demonstrates PacUn’s genuine commitment to fully fund the project and ensure a clear and well-capitalised pathway to production under our shared vision for the project’s economic and community outcomes. Our strategic alignment with Pacific Unison Holdings also positions them as potential partners in future endeavours” “This represents an important strategic opportunity for Papua New Guinea, for the first time, produce “Iron” - the other vital building material ingredient, in conjunction with lime/cement, to build a nation. It also preserves our balance sheet and allows us to focus our resources on bringing our Central Lime and Cement Projects into production.” On behalf of PacUn, a spokesperson said: “We highly recognise Mayur Resources as the parent entity and the great value created in their nation building projects around PNG that will provide essential building materials to develop the nation. We would like to take this opportunity to greatly thank Mayur Iron who have worked on this project for more than 10 years developing an excellent foundation for the project to enter construction development. We also sincerely appreciate the opportunity to work with Mayur Iron and look forward to this project being a great success for PNG”. “This agreement reflects our confidence in the project’s potential and our shared commitment to a true nation building project that brings Iron to PNG and paves the way in future to develop PNG’s first downstream processing steel making facilities. By combining our in-country expertise and resources, we aim to deliver significant economic and social benefits to the region while advancing a world-class industrial mineral sands project that will service export markets but in future also have potential to support PNG’s local iron and steel needs. We are also eager to work with the landowners to institute post mining industry as this type of mining sees little long-term disturbance, where land rehabilitation and the ability to grow cash crops and plantations can be achieved shortly after each section is mined”. “As we have conducted much work already on the project, we are confident in the simple low-cost sand separation operation with no crushing, grinding or chemicals to be used. We are ready to place orders with our identified suppliers and begin construction early next year. We anticipate, subject to long lead items, a construction timeframe of less than 9 months”. Strategic Collaboration with PacUn Pacific Unison Holdings Limited (PacUn) is a private company incorporated in Papua New Guinea with business activities that include mining of iron ore, architectural and engineering activities and quarrying of stone, and who brings expertise in mining and infrastructure development within Papua New Guinea. Their commitment includes forming a local mining services entity to manage the construction, operation, and maintenance of the OBP. Additionally, PacUn has been granted a first right of refusal to participate in any future industrial sands projects owned or controlled by Mayur. This ensures both parties maintain strategic alignment and the potential for further collaboration on mutually beneficial terms. Next Steps The signing of this binding Term Sheet Agreement represents a significant step towards unlocking the full potential of the OBP. The parties will work collaboratively to finalise long-form agreements within the next 60 days, following the date of this announcement and upon which project construction and development will commence. Both parties will contribute to ongoing project management for their respective obligations, ensuring alignment with strategic and financial goals.   The complete press release can be found HERE

Santos has announced the successful completion of the Angore project in Hela Province, Papua New Guinea, further bolstering the country’s liquefied natural gas (LNG) production capacity. This milestone development, unveiled on November 19, marks a significant step forward for the PNG LNG venture, delivering up to 350 million standard cubic feet (mmscf) of gas per day.  The Angore project unlocks access to an estimated one trillion cubic feet of natural gas resources, strengthening PNG’s position as a key player in the global LNG market.  Santos Managing Director and Chief Executive Officer Kevin Gallagher highlighted the importance of the project in showcasing PNG’s abundant natural gas potential.  “The startup of Angore is one of several PNG highlights in 2024 for Santos and our joint venture partners – ExxonMobil, Kumul Petroleum Holdings, Mineral Resources Development Company, and JX Nippon,” Gallagher said.  He also praised the success of other ongoing developments, including the Kutubu field, which has accelerated 16 billion cubic feet of associated gas production this year.  Gallagher outlined several future projects aimed at sustaining and expanding PNG’s energy output:  Hides Footwall Exploration: A well currently being drilled, with the potential to deliver up to 160 mmscf per day if successful.  Agogo and Moran Fields: These developments could collectively supply an additional 125 mmscf per day by 2026.  Long-Term LNG Fields: Projects in P’nyang, Muruk, and Juha are poised to sustain PNG LNG production over the long term.  Additionally, Santos is advancing front-end engineering for the Papua LNG project in the Eastern Highlands Province and exploring promising fields like Wildebeest in the Gulf Province.  “The prolific nature of PNG’s gas resources gives us a strong platform to continue reliably supplying our Asian customers well into 2040 and beyond,” Gallagher said.  Since its inception in 2014, PNG LNG has supplied over 83 million tonnes of LNG to Asian markets, including long-term buyers such as CPC, JERA, Osaka Gas, and Sinopec. The $19 billion project celebrated its 10th anniversary in 2024 and routinely exceeds its nameplate capacity of 6.9 million tonnes per annum by 30%.  The venture has contributed more than $7 billion to PNG through taxes, royalties, and community benefits, all while maintaining one of the lowest greenhouse gas emissions intensities among global LNG producers.  The Angore development reinforces Santos and its partners’ dedication to the long-term sustainability of LNG production in PNG. As global demand for cleaner energy grows, projects like Angore ensure that PNG remains a vital player in meeting the energy needs of Asian markets. 

The government has reiterated its ambition to achieve carbon neutrality by 2050, with an interim target of a 50-percent reduction by 2030, at the recent Petroleum and Energy Conference 2024. Recent reports indicate progress, particularly in the agriculture, forestry, and other land use sectors, which have successfully met initial CO2 reduction targets. Papua New Guinea (PNG) Climate Change Development Authority (CCDA) Acting Managing Director Debra Sungi highlighted the collaborative efforts between the agency, the PNG Forest Authority, and National Energy Authority to advance these objectives. Sungi said: “In our recent bi-annual update report, which we've submitted off to the United Nations Framework Convention on Climate Change, we have reached our target under the agriculture, forestry, and other land use, which is of 10,000 gigagrams of CO2 equivalent with zero debt in our recent findings. “That is a positive step that the government have actually taken together with you all in terms of ensuring that we work together in a more sustainable way. “Those targets are very specific for our agriculture, forestry, and other land use. And that is from our enhanced NDC, which was done back in 2020. We are in 2024, almost halfway through 2030. “It's a 10-year target. It is a positive milestones which we have achieved together,” she added Speaking at PEC24, Sungi, emphasized the urgent need for PNG to transition toward greener practices in the face of mounting climate challenges. Her remarks centered on leveraging nature-based solutions to combat climate change, while also promoting sustainable development. Sungi highlighted the importance of the country’s forests, as reiterated by PNG Prime Minister Hon. James Marape. "As we engage in international forums, we must fully utilize our forest resources," she stated, noting the increasing frequency of climate-related disasters over the past decade, which have disrupted traditional agricultural practices and altered weather patterns. Despite contributing a mere 0.001% to global emissions, she argued that PNG cannot afford to ignore the impacts of climate change. "If we don't take action now, we risk becoming one of the highest emitters in the future," she cautioned. Sungi also addressed the challenges of financing climate initiatives, noting the delays often associated with accessing international funds like the Green Climate Fund. "We need to mobilize resources effectively to respond to the immediate impacts of climate change," she urged, noting the importance of public-private partnerships. The CCDA executive detailed specific goals for transitioning from fossil fuels, particularly diesel-powered plants, to renewable energy sources by 2030. She said the National Energy Rollout Plan outlines potential investments in cleaner energy solutions across identified provinces. Moreover, Sungi announced recent amendments to the Climate Change Management Act, which will enhance governance around carbon markets, enabling better collaboration between the government, local communities, and the private sector. This regulatory framework aims to streamline efforts in forestry management and carbon trading. “I am pleased to say that even after the amendments of the Climate Change Management Act in 2023, we have made some few amendments to allow us as an authority to now manage and govern the space around carbon markets. And we have the regulation that maybe in a couple of days we will have a statement out that we have some endorsement. “I would like to acknowledge our good Prime Minister in driving this agenda going forward together with our ministers,” she said. “It a legislation that has been missing for a very long time. And having that around the forestry sector governs our work in terms of working together not only with our local communities, our landowners, but also with the private sectors around a different market approach, which we have identified another carbon market regulation.” Sungi called for collective action, noting that achieving PNG's climate goals requires partnership across all sectors. "We must ensure that our development is sustainable and inclusive," she stated.

Papua New Guinea Prime Minister James Marape announced the launch of a “transformative” $1.2 billion (4.8 billion kina) agro-forestry project aimed at boosting the economy and infrastructure of the remote midlands of Western Province. During a press conference, PM Marape outlined key features of the project, which promises to enhance connectivity and generate substantial employment opportunities in the region and the country. The conference followed the signing of the GRE Drimgas Project in Western Province at the Government House on October 29th in Port Moresby. The project will facilitate the construction of over 300 kilometers of sealed roads and an additional 300 kilometers of all-weather roads connecting Kiunga to Nomad, extending towards the borders of Gulf Province. Plans include further expansion of this highway to Kikori in the future, the Prime Minister said. "This initiative is not just about road construction; it’s about processing and sustainable development," Marape stated. "Logs harvested from this corridor will be processed within Papua New Guinea by 2028 at a facility located in the deep-water area of Strickland River." The project, being developed by Italian investors, is set to process timber for export to European markets. Landowners will receive 10% equity in the venture, along with log levies and royalties, benefiting directly from the project’s success. Additionally, the provincial government of Western Province and the national government will each hold 5% equity stakes. After 25 years, the equity share for PNG beneficiaries will increase to 51%, ensuring greater local ownership and control. The initiative is projected to create over 3,000 direct jobs, along with numerous indirect employment opportunities through various spinoffs. It emphasizes environmental compliance, adhering to national standards, and includes a five-year project review clause to monitor compliance. "The state will not invest money but will provide necessary regulatory support, allowing the investors to take the lead in developing the project," Marape explained. In addition to the agro-forestry initiative, the Prime Minister highlighted the government's plans to diversify agricultural production across the country. This includes the development of oil palm, rice, cattle, and coffee industries, as well as the expansion of cocoa and copra production. Marape also called on provincial governors from peaceful regions to seek out investors, assuring them of government facilitation. "This is just the beginning. Our government is committed to unlocking the potential of our natural resources while ensuring sustainable practices," Marape added.

Bank of Papua New Guinea (BPNG), on behalf of the Green Finance Centre (GFC), has signed a significant memorandum of understanding (MoU) with the International Finance Corporation (IFC) and the Securities Commission of Papua New Guinea (SCPNG) for establishing the foundations of a thematic bond market in PNG and developing the next version of BPNG’s Inclusive Green Finance Taxonomy (Green Taxonomy). Under this collaboration IFC will provide technical support to the GFC in developing the next version of the Green Taxonomy, initially prioritizing five specific sectors. The Green Taxonomy aims to provide clarity in defining what constitutes an investment green and sustainable. Additionally, under the MoU, GFC will coordinate with IFC to support SCPNG in establishing a Thematic Bond Framework for the capital markets of PNG. The thematic bond framework will be tailored to support green, social, sustainability, and sustainability-linked (GSS+) bonds that aligns to the Green Taxonomy. It is expected to attract investors who are committed to sustainable finance, accelerating essential climate-focused projects in order to create a resilient PNG economy. PNG aims to reduce its greenhouse gas emissions by 50% by 2030 and achieve carbon neutrality by 2050. Over US$1 billion will be required over the next 10 years to meet PNG’s Nationally Determined Contributions (NDC). Governor of BPNG, Elizabeth Genia, highlighted the significance of this MoU, saying: “This partnership with IFC and the Securities Commission represents a critical milestone in our journey towards a climate-resilient and inclusive financial system. “With such collaboration, we are positioning PNG as a leader in sustainable finance within the region. Together, we are building a future-ready financial sector that will support our country’s climate and development goals.” Present at the MoU signing ceremony was PNG’s Country Manager for The World Bank Group, Khwima Nthara who provided his assurance to the Governor of BPNG in his remarks by saying: “You can count on our continued commitment and partnership. “We’re also honoured that Elvira Morella, is signing the MoU on behalf of IFC and chose PNG for her first country visit in her new capacity as Manager, Country Advisory and Economics for East Asia and Pacific. This highlights just how important PNG is to the IFC and the World Bank Group.” By developing a sustainable capital market, the initiative will open pathways for private sector investments into projects that benefit local communities, promote sustainable development at grassroot levels, create green jobs and reduce PNG’s carbon footprint.

The Papua New Guinea Immigration and Citizenship Services Authority (ICSA) today signed a milestone Memorandum of Understanding (MOU) with the PNG Tourism Promotion Authority (TPA) on mutual co-operation and data sharing that will enable promotion of the tourism sector and immigration services. The signing formally establishes a genuine partnership between the two agencies to ensure their mandates are delivered; one is responsible for facilitating genuine movements of people and the other is responsible for promoting tourism activities that directly benefits the local economy. Acting Chief Migration Officer Mr. Wellington Navasivu says the two agencies have realized the importance of working together for the fact that they have similar functions especially when dealing with the tourists. Having an MOU is a way forward and now that it has been signed, implementation will take effect immediately. Unlike working in isolation in the past years and faced with a lot of challenges, ICSA and TPA will now work together where necessary to ensure proper facilitation of the tourist entering and exiting PNG. As an implementing agency, ICSA has implemented government’s decision to remove the visa fees giving visa-on-arrival for all the tourists entering PNG. As a result, there is increase in the number of tourist visiting PNG every year and that directly supports the economy through tourism sector. Mr Navasivu has praised his TPA counterpart Mr Eric Mossman Uvovo for his leadership and has extended gratitude to all staff members from both agencies who have worked tirelessly to complete this MOU. CEO of TPA, Eric Mossman Uvovo highlighted the importance of the partnership. “This MOU supports our goal at TPA to position Papua New Guinea as a premier global tourist destination. By aligning our efforts with ICSA, we can provide a seamless travel experience for international visitors, strengthening our shared commitment in making Papua New Guinea an attractive tourist and investment destination. The industry stands to benefit immensely from this collaboration,” said Uvovo.

 Michael McWalter picks up his prior discussions of petroleum sector reform (Issue No. 3 2024) and describes in more detail exactly what a Production Sharing Contract, or what a PSC, is all about. In my commentary of PNG Business News, Issue 2, 2023 entitled: Petroleum Sector Reform for Papua New Guinea, I wrote about the need to apply better governance to the sector to achieve optimal outcomes for the State. In particular, I spoke of the need for the petroleum revenues arising from petroleum resource development to be deployed wisely for the benefit of the people of PNG on capital formation activities like: education, health, social welfare, infrastructure, etc. – all of which should promote the National economy to grow, and thus improve livelihoods.  This translation of the value of resources with appropriate management into sustainable development is often called the value chain, and each aspect of the chain needs most serious and competent management.   There is little point in mobilising one’s natural resources to make an income for the State, if that money is not put to good purpose, but rather wasted one way or another by folly or malady.  Those resources may only be produced once, and not again; they are finite and have value now at such time as that kind of resource is sought after in global markets. We must remember that there may come a day when oil and gas are no longer consumed with such avid demand as today. This might eventuate as more investments are poured into the development of renewables sources of energy and advancements are made with cleaner nuclear fission and sustainable thermonuclear fusion. Oil and gas might become a quixotic, antiquated and outmoded source of energy, and thus attract considerably less value.  So, if a government is going to foster investment in petroleum exploration and development, it needs to embrace such grave and important responsibility to ensure that the Nation’s petroleum business is conducted most professionally and with total accountability. Government must ensure that the resultant revenues from subsequent production are appropriate, reasonable and respected as being derived from the overall patrimony of the people of the Nation.  This requires investment by the State in professional excellence to manage, moderate, administrate and regulate the sector and its operations firmly and fairly.  The oft cited National Petroleum Authority (NPA), which was first defined in the Government’s 1976 White Paper on Petroleum Policy and Legislation by two of our greatest leaders, Sir Michael Somare and Sir Julius Chan, has been repeatedly conceived, only to be still born. Into that vacuum, Kumul Petroleum Holdings Ltd, PNG’s de facto National Oil Company (NOC) has steadily and bravely taken the lead and embraced National development in the oil and gas sector, and all that it entails. Meantime, the Department of Petroleum and Energy has valiantly tried to keep up with ever increasing core and essential petroleum sector functions, like licensing, operational approvals, and data collection, whilst otherwise becoming absorbed, and perhaps overwhelmed, in the peripheral though, absolutely essential tasks of dealing with project area landowners, their benefit claims and their many other concerns and worries. Plans for a NPA have been formulated in great detail several times over in the last few decades, only to be forsaken, lost, sidestepped, and derailed time and time again. The whole notion of the NPA was to bring together a cadre of PNG excellence to lead the petroleum sector as the guardian of PNG’s petroleum resources. The members of that cadre were to have been well-paid for their experience and important responsibility, and as an Authority of the Government, the NPA might have been able to retain and attract some of PNG’s finest graduates in such exciting and challenging work.   I also discussed the vital need for the commerciality of petroleum developments without which investment by the industry in field development would be withheld.  I discussed how the 2020 amendments to the Oil and Gas Act imposed a test on a proposed petroleum development project that the applicant’s proposals should reflect a minimum expected return to the State over the life of any recovery of petroleum. However, that minimum expected return to the State is not specified in law and is only examined and determined by the Petroleum Advisory Board (PAB), and then considered by the Minister at the time of application for a development licence.  This leaves investors with great uncertainty and unnecessary risk throughout the period of exploration, appraisal, development planning and the application phase of petroleum resource development.  There is thus now no absolute certainty of development if a discovery of commercial extent is made. Either the PAB or the Minister may set a threshold minimum expected return to the State during the consideration of an application for development. This is at a very late stage in the cycle of petroleum resource development investment and comes just before the investing companies have to elect to develop their discovered petroleum accumulation, or not. If a field development is marginally economic, the setting of such a minimum expected return to the State might in some circumstances make corporate consideration of development uncommercial, and as a consequence the field might be left undeveloped. In any normal distribution of petroleum accumulations, there are a few large fields, a fair number of medium size fields and many smaller fields. It would not be wise to disadvantage the development of smaller and often smaller marginally economic fields, which tend to be developed after the larger fields have been found and produced, and which can readily sustain a domestic petroleum industry populated by smaller, and likely, local companies with smaller investments.  Oddly, as I said in 2023, the potential introduction of Production Sharing Contracts (PSCs) would obviate such a risky situation because the terms of development are normally locked into a PSC when originally negotiated and agreed between the State and the investing companies as contractors to the State at the outset. Being a contract, any capricious demand by the State for unexpected returns on petroleum development pursuant to a PSC would end up with the contract being the substance of legal proceedings.  I now want to pick up on my themes of a year ago and discuss optimal and necessary arrangements for petroleum development in the light of some creeping petroleum policy change in recent years, and a keen desire by the Government to change the PNG petroleum regime and to adopt the use of PSCs. I particularly wish to demystify PSCs. Figure 2: Much has been written on PSCs. Celebrated analyst, Daniel Johnston, is prominent with his simplified mapping of fiscal and commercial regimes. King & Spalding, an American multinational corporate law firm, has also written a most comprehensive book on the topic, ex libris McWalter.   WHAT ARE PRODUCTION SHARING CONTRACTS?   The notion of a Government sharing the production of oil and gas arising from the development of a successful petroleum exploration campaign by companies as part of a commercial venture was first developed and employed in Bolivia in the 1950s. A Production Sharing Contract (PSC) is an arrangement between a host Government and an international oil and gas company (IOC) for the division and allocation of the oil and gas produced between those two parties under a contract which provides for the exploration for and the development and production of petroleum resources. The allocation of a share of the production to the IOC serves to recompense the IOC for its investment and to provide a reasonable reward for its success. The Government, as owner of the resources, also provides a mechanism called a cost recovery allowance to the contractor for its work, but keeps the rest of the petroleum produced. The PSC was introduced in Indonesia in 1966, and PSCs of this kind or variants of the same are used extensively to agree the arrangements for oil and gas exploration, development, and production with oil and gas companies. PSCs of one kind or another are used in over 40 countries, throughout the world.   The PSC is not the only manner by which a government may grant oil and gas exploration, development and production rights to commercial investors and gain a share in the value of successful petroleum production.  Prior to the development of the PSC, exploration and production of oil and gas was typically governed by way of a licence or a concession agreement, and such regimes still remain in effect in many different places around the world. In many developing nations, the PSC is now the most common means by which a government allows corporate investment in the oil and gas industry. It provides a company or consortium of companies the right to explore and produce oil and gas.  In many jurisdictions, there are political or nationalistic reasons for the adoption of PSCs as they perceptibly provide the Government with greater and more direct control over its resources and the ability to exert National sovereignty over the industry more readily.   After gaining independence in 1945, Indonesian’s concessions regime came under attack by certain nationalist groups leading to the nationalisation of Royal Dutch Shell’s assets. Indonesian Law 44/60 abolished the old concessionary system and specified that: “Oil and gas mining shall only be carried out by the State and implemented by State enterprises,” and further that, “the Minister may appoint other parties as contractors of the State enterprises.” Alas, a decline in foreign investment in Indonesia’s oil and gas sector inevitably ensued. To mitigate this decline, the government eventually negotiated and agreed in 1962 with the Pan American Indonesia Oil Corporation, a subsidiary of Standard Oil of Indiana (later to become Amoco), a new contract based on legislation that was much more favourable to the Government.  The other large foreign petroleum investors, Caltex (a venture of Chevron and Texaco), Shell, and Stanvac (a venture of Socony [Standard Oil of New York] and Vacuum Oil and Standard Oil of New Jersey, later to become Exxon) followed by signing Contracts of Work in September 1963. These early PSCs were widely considered to be less controversial than the previous concessions system, as they enabled the government to maintain formal ownership of the resources until sold, while permitting the IOCs to exploit them for and on behalf of the Government. These contracts provided for the recovery of the costs of the contractor up to an agreed percentage of overall production plus an agreed, but often scaled, share of the produced oil and gas as a reward for its investment. Although often cited as the example of the use of PSCs, in 2017, in a somewhat odd twist, the Indonesian Government established a new form of PSC called the Gross Split PSC. This completely abolished cost recovery systems pioneered in the classic PSCs of the 1960s. Instead, this new arrangement simply relies on an agreed split of the actual production between the Government and the IOCs, typically 43% to the contractor for oil and 48% to the contractor for gas production, with the balance of production going to the Government. Due to a loss of faith in Pertamina (Indonesia’s national oil company) in the late 1990s (an audit had shown that Pertamina had allegedly lost about US$6.1 billion from inefficiency and corruption in 1997 and 1998) the Indonesian Government took steps to rein in control of the industry at the Ministry level, but they had no financial ability to manage the proceeds of the sale of oil and gas which were remitted to the revenue account of the National government.  Without any retained funds, this then entailed the Ministry having to seek parliamentary appropriations to pay the cost recovery allowances to the IOCs, but then the Indonesian Parliament questioned these payments. This brings home the need to think through the implications of changes in regime and the management of any given regime, especially if one is contemplating changing from a licence or concessionary regime to a contractor-based one. What is a PSC? In a PSC, a government makes a contract with an IOC to provide the necessary and requisite financial, technical, management, environmental, social, planning and logistical skills in order to explore for, and hopefully, if successful in finding oil and gas accumulations, to produce the oil and gas. The host State (that throughout most of the world, normally owns the subterranean resources) will usually be represented by the Government or a Government Petroleum Ministry, Department, Authority or quite often some other type of agency of the State, such as its National Oil Company (NOC), which will take delivery of the State’s share of production and generally manage the commercial aspects of the PSC. The IOC is typically granted an exclusive time-limited right to explore for petroleum accumulations, appraise any discovery, plan and execute development and produce oil and gas within a defined area, generally known as the contract area. Under the PSC arrangement, the IOC bears the entire risk of the project, both technical and financial. If a commercial discovery is declared, the IOC becomes entitled to a portion of any subsequent petroleum produced as an effective payment for its efforts, in addition to recouping all its costs from the production. Conversely, if no discoveries are made, the IOC receives nothing. The Government retains ownership of all the oil and gas produced, save for what oil and gas is allocated to the IOC as cost recovery petroleum, or is the subject of sharing between the IOC and the NOC as profit petroleum. This causes the Government to be involved in selling its share of the produced oil and gas.  In some jurisdictions, the IOC is allowed to keep the physical oil for itself, and the IOC makes just cash payments only to the NOC, based on the sale of the NOC’s petroleum entitlements; in others, physical oil and gas allocations are used to reward the IOC. The extent to which the NOC is involved with the exploration, development and production process varies from country to country with some NOCs seeking to take a significant lead in the business other than a just managing the PSC, whilst other NOCs take only a small participating interest in the commercial venture, so as to be within the operating consortium and to learn from it. There are commonly four key financial aspects to a PSC: royalty, cost recovery petroleum, and profit petroleum, though many other relevant matters are agreed in the PSC. Figure 3: Contents of a PSC: A sample from Equatorial Guinea, after the Republic of Equatorial Guinea, 2006    Royalty Most often and foremost, the IOC is typically expected to pay a prescribed or agreed royalty as a percentage of the gross value of oil and gas production to the State as valued at the point of export from the contract area. The royalty is often, at the State’s option, taken as a physical share of production, or alternatively by way of a payment by the IOC equivalent to the sale price of the State’s royalty share of production. Sometimes, the percentage rate of royalty may be the subject of bids for a contract area by competing oil and gas companies when bidding for the same or similar areas.  Royalty is a payment made in kind or related to produced volumes and price without regard to the profitability of the business. Therefore, in times of low petroleum commodity prices it has the effect of digging deep into profitability.  However, for a host Government, royalty is an assured payment regardless of profitability, but proportionate to the value of the produced oil and gas. Cost Recovery Petroleum Following payment of any royalty, the IOC is normally entitled to a pre-determined maximum percentage of gross production from which it may recover all its genuine costs, with any costs not recovered being carried forward to the next accounting year. Such production is known as cost oil and cost gas, and again may be taken in cash or kind. Obviously, the IOC attempts to maximise cost recovery early in the cycle of production up to the agreed maximum percentage limit, so as to recoup its expenses soonest, and likewise the Government will scrutinise the costs submitted to it for recovery as to their genuine eligibility. That scrutiny involves approval of all procurements and sub-contracts of the IOC, and represents an enormous accounting burden for the Government.   Profit Oil The oil and gas remaining after the payment of royalty to the Government and the cost recovery allowance to the IOC by the host Government is known as profit oil and profit gas, and it is generally divided between the IOC and the Government in accordance with the production sharing provisions agreed and defined in the PSC. Quite often the Government’s share of profit oil and profit gas increases as the production rates increase. Income tax Finally, the IOC is quite often required to pay income tax on its share of net benefits which should strictly amount only to profit oil, as cost oil and cost gas represent only a recoupment and recovery of costs. However, the application of income tax varies from jurisdiction to jurisdiction and in some cases the IOC’s notional income tax due is often paid by the NOC, or the State on behalf of the IOC, such that there is no financial impact on the IOC, there being just a journal entry between different parts of the Government. An income tax superposed on the PSC regime without appropriate tax deductions can rapidly make a fair PSC regime become a very hostile one.  In the calculation of the net take to the State under a PSC, one has to include the results of any Corporate Income Tax and all and any other taxes, levies or imposts that affect the outcome of the overall PSC.  In some PSCs, there is simply no tax, and the royalty, cost oil and gas, and production share are deemed to be final fiscal devices. Figure 4: It must be noted that the production or profit oil split is not the same as the overall net take to each party, after Daniel Johnston in International Petroleum Fiscal Regimes and Production Sharing Contracts      Government Involvement The objectives of the parties when negotiating a PSC and its terms will generally be diametrically opposed.  An IOC will strive to negotiate for itself as much independence and control as possible over operations, and it will want any State intervention in the running of the project to be kept to a minimum. Naturally, it will be keen to keep its costs low, by negotiating the highest cost recovery allowance and the largest production share it can, and it will seek the full recovery of all its costs. The Government will wish to have an overall say in the development of its resources in an orderly and systematic manner that creates synergies for future development. The Government will also wish to make as much money as possible, reduce cost recovery allowances, and have access to an IOC’s resources and relevant expertise, without spending much time and money. The Government may also have economic priorities for domestic petroleum supply to its economy to mitigate energy import requirements and obviate foreign exchange requirements. Throughout the contract from exploration to development to production, the Government will want to ensure that the IOC is undertaking a technically appropriate exploration work programme with appropriate levels of investment and that the exclusive right to access land or the offshore area is being used efficiently. In addition, the Government will typically be concerned to secure as many rights and benefits for the people and local businesses, including affected local communities, as possible.  This is generally accomplished by the optimisation of jobs and training for local workers through requirements to use local goods, services and contractor and subcontractor services as far is feasible and practical – this is what is typically called local content. Figure 5: The main elements of a PSC, after Hassan Harraz, Tanta University, Egypt, 20106   Why the PSC Model? The obvious advantage of the PSC model for a government is the minimal risk on its part throughout the value chain of the enterprise. It is thus able to reap the benefits of its natural resources without having to spend its own time and money even for development. This is not to say that the State does not pay. It inevitably pays for its share of all and any costs of exploration, development and production through the cost recovery process payable to the Contractor. In most cases, the Government will not have the technology needed to explore for and produce oil and gas, and so contracting the help of an IOC that has the appropriate skills, capacities and technology is usually necessary in order for the Government to exploit its natural resources optimally, especially in the offshore areas. The same is, however, also true for licence and concessionary arrangements where even if the host Government has an equity option to take up a participating interest in a petroleum development project it will still pay for at least its pro rata percentage share of sunk and past exploration, appraisal and development planning costs up to the point of the establishment of facilities for development and the commencement of the recovery of the petroleum. As and when exploration proves to be successful, the Government can secure long-term supplies and/or exports of oil and gas in a PSC regime, which it can trade as it sees fit. The long-term nature of a PSC enables the Government to predict future levels of oil and gas for domestic use, export and to make provisions in the national budget accordingly. Alternatively, the PSC model can be most lucrative for the State, if it takes the option of taking its share of production as a cash payment, rather than in kind. It is also very common for PSCs to contain provisions that as the production rate increases, the proportion of the production attributable to the Government may also increase, meaning that a significant and increasing proportion of the value of profit oil is paid to the host Government and its representative entity defined in the PSC. In all cases, at the initial stage of petroleum resource development, the IOC bears substantially all the financial risk. If, and only if, exploration proves successful and the discovered oil and/or gas accumulations are developed and produced, the IOC may be able to recover its costs through cost oil and/or cost gas and an agreed share in the profits of the remaining quantity of oil and gas. As to whether the PSC model is more favourable to the State than to IOCs in contrast to the licence or concessionary system, ultimately depends on the rates used for the various fiscal and commercial parameters in each system. In a concessionary regime, costs are only recovered slowly as depreciation allowances against assessable income. The speed of the recovery of costs depends entirely on the terms set by law and those allowed to be negotiated in the framework of a PSC. It may or may not be possible for an IOC to negotiate the terms of a PSC with more, or less financially and commercially attractive terms for petroleum development than a licence or concession arrangement might otherwise have offered under a prior regime. It is all about the terms of the selected regime, whichever is applied. Figure 6: Some terms of the petroleum regime may still be contained in legislation whilst others will be negotiable depending on the particular regime, after Daniel Johnston in International Petroleum Fiscal Regime and Production Sharing Contracts.     One possible negative aspect of the PSC model is that it is an agreed and contractual arrangement, and not the product of binding and enforceable legislation. Thus, any breach of the PSC by either party will constitute a breach of contract for which civil relief may be obtained.  Pursuant to the PSC model, the State always remains the owner of the resources, with the contract establishing the applicable compensation arrangements and level of NOC or Government involvement in the asset. The negotiation of a PSC is up front before any investment is made in exploration by the IOC, so the terms are locked in.  PSCs tend to afford IOCs less freedom to run an asset, with Contractors being subject to restrictions and required approvals in addition to those contained in the applicable legislation and regulation. Commonly Used Alternatives to the PSC There are several substantial alternatives to the PSC model. The differences in these alternatives are mainly in relation to the level of control granted to the IOC, the level of involvement of the NOC, and the compensatory arrangements for the investment made. Licences Generally, under a licence arrangement, there is normally little scope for an IOC to negotiate specific fiscal or commercial terms in relation to its exploration and production rights. Licensing regimes and their terms and conditions are typically standardised and embedded in legislation, such that the terms of each licence are near identical. This regime is most common in developed countries, e.g. UK, Norway, the Netherlands, and Australia. The terms of licences may change from time to time as the Government seeks to restrain or encourage sector investment.  The IOC is typically granted complete control over the contract area and complete ownership over any oil and gas that it successfully produces. Unlike PSCs, where ownership of the resources always remains with the State, in licence regimes ownership generally passes to the IOC at the wellhead, with the IOC’s profits from the sale of the oil and gas produced being the subject to general tax legislation, or specific petroleum taxation legislation. Like in PSCs, if the IOC fails to find commercially producible oil and gas within the limited terms and periods of their licence, they go home empty handed.  In some jurisdictions, the Government has an entitlement to join in at the development stage when the risks of finding oil or gas have been mitigated and it may either chose to pay its proportionate share of costs of exploration and development and participate alongside the IOCs, or be carried in some form or another. This can be a very profitable feature for the Government, but it essentially takes a slice of the venture away from the IOC venture at the proportionate sunk costs only, without any regard or compensation for the commercial value of any oil and gas discovered by the IOC. Concessions A concession arrangement is generally subject to a greater level of negotiation than a licence. The IOC is typically granted proprietary rights over the contract area and complete ownership over any oil and gas that it successfully produces, subject to the payment of a royalty and income tax, each of which may vary in rate depending on the level of production as negotiated and agreed. There may be specific taxes like the Additional Profits Tax (APT) which progressively applies further amounts of tax, the greater the rate of return of the production project. In some jurisdictions, licences have become more concession-like as the terms and conditions of the licences have increasingly become the subject of Agreements with the Government defining those agreed terms which are supplementary to or adjust the current and applicable legislation as sought by and agreed by both the Government and/or the IOCs. Service Contracts Under a service contract, the IOC provides its technical services to the State to explore and develop oil and gas resources, and therefore in so many ways, it is similar to a PSC. However, remuneration to the IOC is usually by way of a service fee or payments based on the value of oil produced in US$ per barrel for oil and other hydrocarbon liquids, or per million British Thermal Units (BTU) of energy for natural gas. The term of a service contract is often very short, leaving an IOC with considerable risk and no guarantee of a long production period Services contracts are common in Iran, Iraq and Kuwait and have also been used from time to time in Indonesia and the Philippines. The Overall Picture By and large, about half the world’s petroleum prospective Nations use licence/concessional systems and about half use PSC arrangements, though many of each of these are strictly hybrids involving features of one regime and the other. No particular petroleum regime is superior to any other and much depends on the degree to which the host Nation wishes to promote or reduce exploration investment according to the terms applied. Sometimes, the IOC will tolerate a slightly tougher regime, if they know that it will be stable and well-implemented in a professional and organised manner. Good subsurface prospectivity and a consequent high chance of finding accumulations of oil and gas can often be spoilt by self-imposed surface risks. Factors that may induce surface risk are Governments that: successively make petroleum regime changes, politically drive or make unqualified determination of fiscal and commercial terms without regard to the ultimate take to each party in the case of success, and the poor governance of the sector in general leading to untimely and late decision making. Indeed, a good regime whether it be a PSC-type or a licence/concessional one, will depend on the enforcement of its terms and conditions and the values agreed for those terms and conditions that determine economic outcomes.  The great difference between PSCs and other arrangements is that PSCs keep control over the produced oil and gas and its sale and disposal with the State, whereas licences and concessions leave such matters and the fate of the industry more to the will and imperatives of the corporates.  The intrinsic control of a contractor by the NOC under a PSC means the Government has to be better equipped, more efficient and more knowledgeable to operate such a regime than under a licence or concessionary regime. The State or its representative (usually its NOC) needs to make the PSC work in its favour as it is the manager of the entire enterprise and needs to lead the way. Any failure to step up to such challenges will result in a poorly planned development of the industry with delays, unrealised synergies leading to lost production, and overall loss of value from the resources. No matter what regime is applied to the development of petroleum resources, there is no doubt that resolute and appropriate petroleum policy formulation and firm and fair administration of the sector will pay dividends for any host Government willing to invest in such. The definition of a petroleum regime is not a new game; it has been done many times across the world by many Governments and there is very sound collective advice on the subject which is relatively inexpensive to access compared to the enormity of the task and the value of managing a Nation’s petroleum resources optimally. Figure 7: The IMF has some excellent specialists in its Fiscal Affairs Department who advise Governments on resource regimes and it has often commissioned books and studies on such matters as in the excellent handbook on Administering Fiscal Regimes for Resource Industries by Jack Calder, formerly of the Oil Taxation Office of the UK, ex libris McWalter.    

In an era where cyber threats are evolving at an unprecedented pace, one company has stood out in its unwavering commitment to securing businesses across Papua New Guinea and the Pacific Islands. For over ten years, Sprint Networks has been at the forefront of designing and implementing secure data networks, earning the trust of prominent financial institutions and businesses in the region. Leading the Charge in Cyber Threat Protection Cyberattacks have become a global concern, affecting organisations of all sizes. Sprint Networks addresses this head-on by providing cyber threat protection on par with the security measures employed by major banks. Their advanced intrusion detection and prevention systems are not just reactive, but proactively identify and neutralise threats before they can impact business operations. "What's impressive about Sprint Networks is their utilisation of premium security products tailored specifically for the challenges in PNG," says a senior IT manager at a leading financial institution, who remains anonymous for security reasons. "Their solutions are robust, and their expertise is evident in the seamless integration of these systems into our existing infrastructure." Designing Secure Data Networks Trusted by Industry Leaders At the heart of Sprint Networks' success is their dedication to crafting secure data networks that exceed industry standards. Their portfolio boasts collaborations with some of the most reputable banks and financial organisations in PNG and the Pacific Islands. "Our trust in Sprint Networks is built on years of reliable service and innovative solutions," remarks the CIO of a major bank in the Pacific. "Their architecture and design have fortified our defences against cyber threats, and their ongoing support ensures we stay ahead of potential risks." Overcoming Connectivity Challenges with Award-Winning SD-WAN Solutions Connectivity in rural and remote areas of the Pacific has long been a challenge, often hindered by unreliable infrastructure and unfulfilled promises. Sprint Networks has flipped the script with their award-winning Software-Defined Wide Area Network (SD-WAN) solution. Their SD-WAN technology is engineered to provide secure rural connectivity, ensuring businesses in even the most remote locations have access to reliable and secure network services. Key Features of Sprint Networks' SD-WAN: Resilient Connectivity: Utilising multiple carriers and redundant links to guarantee uninterrupted service. Optimised Performance: Intelligent traffic management that reduces latency and enhances bandwidth efficiency. Integrated Security: Comprehensive protection across all network paths to safeguard data integrity. "Sprint Networks didn't just offer us a solution; they provided a partnership," says a technical director at a regional enterprise. "Their SD-WAN has transformed our operations, enabling us to connect securely with our teams spread across various islands." Embracing the Future with Secure Remote Work Solutions The shift towards remote work has highlighted the need for secure access to corporate resources from anywhere. Sprint Networks leverages the Secure Access Service Edge (SASE) model to meet this demand. Benefits of Sprint Networks' SASE Implementation: Unified Security and Networking: Streamlines management by integrating security and network functions into a single cloud-native service. Zero Trust Principles: Ensures every user and device is verified before granting access, significantly reducing security risks. Scalable Solutions: Adapts effortlessly to the changing needs of businesses, accommodating growth without extensive additional investments. Enhanced User Experience: Provides fast, reliable access to applications and data, crucial for remote productivity. "The adoption of SASE through Sprint Networks has been a game-changer for us," notes an IT consultant working with businesses in PNG. "Their expertise made the transition smooth, and the security enhancements are both palpable and reassuring." Comprehensive Managed IT Services Beyond their cutting-edge products, Sprint Networks offers managed IT services that allow businesses to focus on their core competencies. Their team provides continuous support, maintenance, and optimisation, ensuring that IT infrastructures run smoothly and efficiently. A Passionate Commitment to the Pacific What sets Sprint Networks apart is not just their technical prowess but their genuine passion for serving the communities of PNG and the Pacific Islands. Their decade-long journey is marked by a commitment to empowering local businesses through secure and reliable technology solutions. "Sprint Networks' dedication goes beyond business; it's about building lasting relationships and contributing to the growth of our region," reflects a long-time client, also asking he not be named for security reasons. "Their understanding of our unique challenges and their customised solutions have been invaluable." Why Businesses Choose Sprint Networks Proven Expertise: A decade of experience serving the unique needs of PNG and the Pacific Islands. Trusted by Leaders: Endorsed by major financial institutions and enterprises for their reliable and secure network designs. Innovative Solutions: Pioneering the use of SD-WAN and SASE technologies in the region. Premium Products: Deployment of top-tier products specifically designed for the demands of the local environment. Customer-Centric Approach: A focus on building strong partnerships and delivering tailored solutions. The Future of Cyber Security in the Pacific As cyber threats continue to evolve, the need for robust security measures becomes ever more critical. Sprint Networks stands as a beacon of excellence, offering solutions that not only protect businesses but also enable them to thrive in a connected world. For organisations in PNG and the Pacific Islands seeking a trusted partner in cyber security and network solutions, Sprint Networks represents a blend of technical expertise and heartfelt commitment to the region's prosperity. For more information on Sprint Networks and their services, visit their website or contact their team of experts dedicated to securing the future of the Pacific.

Rocket and Satellite company SpaceX will be speaking and exhibiting its Starlink satellite subsidiary at the 2024 the at the 2024 PNG Investment Week. PNG’s leading investment event, PNG Investment Week will take place from December 6th to 11th in Sydney Australia, the PNG Investment Week program includes sessions on a range of topics covering the resources, banking and finance, environment, and emerging technologies. It is expected that over 1800 business delegates from PNG and all over the world will attend, with over 90 speakers and nearly a 100 companies exhibiting in the Expo. SpaceX will present on a session entitled “Big Ideas” on Tuesday December 10th, 2024, where it will outline the potential benefits for PNG through Starlink and SpaceX Technologies. Space X designs, manufactures and launches rockets and spacecraft and owns and operates Starlink Services which provides data services to the world through its constellation of 6000 satellites orbiting the world. In announcing this, PNG CORE President Anthony Smaré reaffirmed the need for PNG to embrace new technologies that can allow all Papua New Guineans to be connected to the world cheaply and at greater efficiency. “Starlink, a global leader in satellite-based broadband internet services, is set to transform connectivity in Papua New Guinea, if allowed. In a nation where rugged terrain and remote communities often hinder access to reliable internet, Starlink’s cutting-edge technology promises to bridge the digital divide, revolutionizing sectors such as education, healthcare, business, and resource development. The rest of the world, including all of our smaller Pacific neighbours have embraced Starlink for the benefit of their citizens already, and we need to catch up, rather than lock up our market and our people from the freedom and benefits that this cheap affordable and easily accessible technology will provide.” “The public should be excited because this marks a significant leap forward for digital inclusion, economic growth, and technological advancement in PNG. Starlink’s commitment to PNG may mean that even the most remote communities will gain access to fast, reliable internet, enabling new opportunities in ecommerce, digital learning, and global trade.” “SpaceX participation underscores the event’s broader theme: "Creating Opportunity, Reinvesting Equity." Those in attendance will gain exclusive insights into how Starlink’s innovations can unlock PNG’s vast economic and human potential.” “In addition to presenting, SpaceX is also exhibiting at PNG Investment Week, where they will have their representatives standing by for questions from delegates who attend this leading investment event.” “This is an opportunity not to be missed – those who wish to hear first-hand from the global leader in emerging technology, should register now via www.pnginvestmentweek.com.pg ” This is your chance to engage with one of the most innovative companies shaping the future of global connectivity. Starlink’s presence at PNG Investment Week is a milestone for PNG and a testament to the nation’s commitment to embracing transformative technology.