Papua New Guinea's petroleum sector has taken another step towards expanding local participation in the country's growing gas industry, with Petroleum Minister Jimmy Maladina approving the National Content Plan (NCP) for the Pasca A Gas Project.
Maladina approved the plan following a technical review and compliance assessment by the National Petroleum Authority (NPA).
The NCP was submitted by Twinza Oil (PNG) Ltd., operator of the Pasca A Gas Project, and approved under Section 129 of the Oil and Gas Act 1998.
The approval establishes a framework intended to increase opportunities for Papua New Guinean workers and locally owned companies to participate in the development and future operation of the project.
Maladina said the plan would support education, training, skills development and employment while increasing the participation of PNG-owned businesses and communities in the supply and procurement of goods and services.
“This approval gives effect to the objectives and principles of the Petroleum Sector National Content Policy 2023 and is intended to ensure that the development and implementation of the Pasca A Gas Project delivers meaningful and sustainable national benefits to Papua New Guinea,” he said.
Local business participation
The approved NCP provides opportunities for Papua New Guinean citizens and locally owned companies to participate in professional and technical services required by the project.
These include legal, accounting, financial, payroll and other professional services, creating potential opportunities beyond traditional construction and resource-sector contracting.
The plan also provides for targeted investment in areas with potential to deliver longer-term economic and social benefits, including health care, education, critical infrastructure, research and development, and technology.
For local businesses, implementation of the plan could create opportunities to build capacity, develop supply-chain relationships and position PNG-owned companies to compete for contracts across the project's different development phases.
The government expects communities in Gulf Province, as well as Papua New Guineans more broadly, to benefit from the project alongside other major gas developments, including Papua LNG.
Pasca A therefore adds to the potential pipeline of activity in PNG's petroleum sector and could generate demand for local labour, services, logistics, procurement and supporting businesses as the project progresses.
Maladina said implementation of the NCP would promote the progressive development of national content throughout the relevant licence and project phases.
The focus on national content is also intended to ensure that economic benefits from resource development extend beyond the project operator and into the wider domestic economy.
Quarterly monitoring during construction
The approval comes with regulatory conditions designed to ensure that commitments contained in the NCP are implemented and monitored.
Twinza will be required to submit quarterly status reports and implementation updates during the construction phase through the Petroleum Sector National Content Office to the NPA. During production, the company will be required to submit annual status reports.
The reports will allow the NPA to assess progress against the commitments, targets, programmes and outcomes contained in the approved plan.
Twinza must also maintain complete records of NCP implementation and facilitate monitoring, verification, audits and compliance reviews undertaken by the NPA.
The company is required to provide information and reasonable assistance necessary for regulators to verify compliance.
The approval remains subject to ongoing regulatory monitoring and compliance with the NCP, the Oil and Gas Act 1998 and applicable petroleum-sector policies.
For PNG's private sector, the effectiveness of the plan will ultimately depend on how successfully local companies can access procurement opportunities, develop the required capabilities and participate throughout the Pasca A project lifecycle.
