Prime Minister James Marape has assured landowners and provincial governments involved in the PNG LNG Project that their agreed equity interests will remain intact as the government finalizes a structure to manage long-term benefits from the country's flagship liquefied natural gas project.

Speaking during Question Time in Parliament, Marape said the government was continuing consultations with affected provinces and beneficiary groups and would not impose a final structure without their participation.

His remarks came in response to questions from Hiri-Koiari MP Keith Iduhu, who sought an update on outstanding landowner benefits under the PNG LNG Project, particularly for communities in Central Province.

Marape said the restructuring process remained ongoing and emphasized that the equity allocated to beneficiaries under the Kokopo Umbrella Benefits Sharing Agreement would not be reduced.

"There will be no dilution whatsoever of the total stake allocated to the beneficiaries," he told Parliament.

"The total stake was agreed under the Kokopo Umbrella Benefits Sharing Agreement, and it will not be diluted or transferred to other beneficiary groups."

The prime minister said the government had already begun discussions with governors from the affected provinces, recognizing their constitutional role in determining how provincial equity interests should be managed.

He said provincial executive councils and provincial assemblies would be responsible for deciding whether their equity should form part of a unified investment structure or be managed independently.

"The Provincial Executive Councils and Provincial Assemblies must decide what is best for their respective provinces and communicate their preferred option to the National Government," Marape said.

He encouraged Central Province leaders, including Iduhu as a member of the Provincial Assembly, to work with the provincial government to reach a collective decision.

Marape said the government's proposal aims to safeguard the long-term value of the 4.27% equity interest in the operational PNG LNG Project while generating sustainable wealth for landowners and provincial governments.

He described the stake as a premium asset that could continue producing income for future generations if professionally managed.

"To the people of the five beneficiary provinces, the 4.27 per cent ownership in a de-risked PNG LNG Project is a premium asset," he said.

"You can choose to distribute the proceeds each year, or you can place the interest in a properly managed structure that continues earning and creating wealth perpetually for the people."

Marape cited the Mineral Resources Development Company (MRDC) as an example of how consolidated landowner assets can generate stronger long-term returns through professional investment and management.

He said the objective was not to alter existing entitlements but to protect and grow the asset so benefits continue flowing to landowners, provincial governments and future generations.

The prime minister said provincial governments have now been asked to evaluate the available options and advise the national government of their preferred arrangements.

He reiterated that provinces wishing to manage their equity independently would be free to do so, provided the decision reflected the collective interests of landowners and local communities.

Marape said consultations with provincial leaders and recognized beneficiary groups would continue before any final structure is adopted, reaffirming the government's commitment to honoring legally agreed benefits and strengthening landowner participation in major resource projects.

Papua New Guinea expects the US$14.5 billion (approximately K58 billion) Papua LNG Project to reach a final investment decision (FID) before the end of 2026, as the government accelerates petroleum sector reforms aimed at attracting investment and expanding production.

Petroleum Minister Jimmy Maladina announced the update during the PNG CORE National Content Conference, held as part of PNG Resources Week 2026 at APEC Haus in Port Moresby on Thursday. Addressing industry leaders, investors, development partners, provincial governments and landowner representatives, he said PNG's petroleum industry is entering a critical phase as global demand for secure and reliable energy supplies continues to grow.

Maladina said geopolitical instability, particularly the conflict in the Middle East, has heightened global concerns over energy security, placing Papua New Guinea in a favourable position to supply international markets.

Despite global uncertainty, he said PNG remains an attractive destination for petroleum investment because of its proven resource base, competitive fiscal regime, experienced workforce and commitment to responsible resource development.

Major projects progressing

Reviewing progress over the past year, Maladina said the government is working with developers to advance the Papua LNG and Pasca Gas projects towards final investment decisions, while the proposed Western Energy Project is undergoing detailed due diligence.

He said the Papua LNG Project Development Forum, launched on 10 July, is progressing well, with negotiations expected to conclude through the signing of a Development Agreement within the next month.

The agreement is a key prerequisite before the government can issue a Petroleum Development Licence, enabling the project developer and its joint venture partners to proceed with a final investment decision.

Once approved, construction is expected to continue over the next five years.

Maladina said the Papua LNG project will inject substantial investment into Papua New Guinea's economy during construction while creating opportunities for local businesses and workers.

He said the government expects project developers, joint venture partners and contractors to prioritise local employment, skills development and business partnerships throughout the construction phase and during the project's operational life.

Exploration remains active

Maladina said exploration activity remains strong across Papua New Guinea, highlighting the ongoing drilling of the Mailu-1 deepwater exploration well through a partnership between TotalEnergies and PETRONAS.

He said drilling is progressing towards the targeted reservoir, with the government hopeful the coming weeks will deliver encouraging exploration results.

The minister also announced that offshore petroleum blocks in the Gulf of Papua have been reserved for future auction once the government completes its petroleum fiscal reforms, with the country's first offshore licensing round expected to be launched next year.

He also identified further exploration opportunities across existing Petroleum Prospecting Licences in the Papuan Basin, Gulf of Papua and New Ireland Basin.

Maladina urged Petroleum Prospecting Licence holders to fulfil their approved work programmes by undertaking genuine exploration activities while giving priority to Papua New Guinean workers, businesses and service providers before sourcing expertise overseas.

He warned that the government would strictly enforce National Content requirements across all petroleum exploration and development activities.

Production Sharing Contract reforms

Maladina said the government remains committed to modernising Papua New Guinea's petroleum governance framework while maintaining an attractive investment environment.

A key initiative is the proposed Production Sharing Contract (PSC) Framework, which aims to provide greater regulatory certainty, improve transparency and enhance the country's international competitiveness while ensuring the State receives an equitable share of value generated from its petroleum resources.

Consultations on the PSC Reform Policy began in October 2025 and concluded in March 2026, with submissions from PNG CORE and industry stakeholders in Papua New Guinea and overseas.

Maladina thanked PNG CORE for supporting the consultation process, saying the reforms are intended to deliver better outcomes for both the State and industry. Legislation to implement the new PSC framework is expected to be introduced before the end of the year.

Coordinated gas development

The government is also pursuing coordinated development of stranded and marginal gas resources in Western and Gulf provinces through shared infrastructure and integrated project planning.

Maladina said many gas discoveries have remained undeveloped for years and Petroleum Retention Licence holders are now expected to advance their projects toward commercial production.

He warned that licence warehousing would no longer be tolerated, confirming that his policy directive under the Oil and Gas Act requiring coordinated gas development is already in effect.

Failure to comply with lawful statutory directions, he said, could result in the forfeiture of petroleum licences.

Downstream petroleum opportunities

Maladina also announced that the National Petroleum Authority (NPA) is preparing a comprehensive Downstream Petroleum Policy and Regulatory Framework to support the expansion of the country's downstream petroleum industry.

Once endorsed by the National Executive Council, the policy will be released for public consultation.

He said downstream development offers significant opportunities to expand domestic processing, strengthen Papua New Guinea's energy security, stimulate industrial growth, create employment and business opportunities, and attract additional investment.

Strengthening landowner benefit sharing

The National Petroleum Authority is also developing a strengthened Beneficiary Management and Social Licensing Policy to address long-standing issues involving social mapping, landowner identification and benefit distribution.

Maladina said the reforms are intended to improve transparency and governance while ensuring legitimate resource owners receive their benefits without delaying project implementation.

He noted that although the State owns Papua New Guinea's petroleum resources, customary landowners retain ownership of the land where those resources are located.

The government and project developers, he said, must continue recognising customary land rights through proper consultation, land access agreements, compensation, local content participation and equitable benefit-sharing arrangements.

National Petroleum Authority takes shape

Maladina said 2026 will mark the full establishment of the National Petroleum Authority, with implementation scheduled during the third and fourth quarters of the year.

He described the authority as a major institutional reform that will strengthen petroleum regulation, technical expertise, policy development, petroleum data management and stewardship of the country's petroleum resources.

The NPA Board has approved the authority's organisational structure, which will be submitted to the Department of Personnel Management for review and endorsement. Recruitment for new positions is expected to begin after August, once statutory approvals have been secured.

Maladina said the authority has been designed to operate in line with international regulatory standards. Its expanded mandate will include a dedicated National Content Division to oversee implementation of the government's Petroleum Sector National Content Policy, support future legislation and strengthen compliance across the industry.

National Content remains a priority

Maladina reaffirmed the government's commitment to increasing Papua New Guinean participation across the petroleum value chain by creating more opportunities for local businesses, employment, training, skills development and technology transfer.

He urged licence holders, petroleum operators and contractors to fully comply with the government's local and national content requirements, warning that companies failing to support these objectives would not be regarded as operating in good standing in Papua New Guinea.

Maladina also encouraged operators to invest in local workforce development and supplier capability, saying a stronger national skills base and business sector would enhance the industry's long-term competitiveness and deliver broader economic benefits.

Promoting investment

Looking ahead, Maladina announced that the Ministry for Petroleum and the National Petroleum Authority, in partnership with PNG CORE, will host a dedicated petroleum investment session during the APEC Economic Leaders' Meeting 2026 in Shenzhen, Guangdong Province, China, in November.

The event will showcase investment opportunities across Papua New Guinea's upstream, midstream and downstream petroleum sectors, as well as specialist service industries, while providing a platform to engage directly with global energy companies and investors.

Maladina said the government intends to use the forum to reinforce Papua New Guinea's position as a competitive destination for petroleum investment amid growing global demand for secure and reliable energy supplies.

Building a competitive petroleum sector

Maladina acknowledged the leadership of Prime Minister James Marape and the Marape-Rosso Government in advancing major petroleum projects, implementing sector reforms and strengthening institutions responsible for regulating the industry.

He said the government remains committed to building a modern, competitive and sustainable petroleum sector capable of attracting long-term investment, increasing national participation and delivering lasting economic benefits for Papua New Guinea.

"Together, we have an opportunity to transform Papua New Guinea into a globally competitive petroleum producer that delivers sustainable growth, creates opportunities for our people and secures lasting prosperity for future generations," he said.

The National Government has strengthened representation for communities affected by the Papua LNG project, with Petroleum Minister Jimmy Maladina assuring landowners and local leaders that every impacted district and province will have a voice during the Papua LNG Development Forum.

Speaking at APEC Haus on Wednesday, 8 July, the Minister outlined the government's approach to the development forum, describing it as a key process required under the Oil and Gas Act before discussions on benefit-sharing arrangements can proceed.

The forum, hosted by the Office of the Minister for Petroleum, commenced this week in Port Moresby after plans to launch it in Kerema, Gulf Province, were changed due to infrastructure constraints and other logistical considerations. The decision to relocate the forum received Cabinet endorsement.

Minister Maladina said that while stakeholder consultations had already begun, the forum would be officially launched by Prime Minister James Marape later this month, when the Director's Proposal—a mandatory requirement under the Oil and Gas Act—would be presented to all stakeholders.

Following the presentation, participants will observe a seven-day consultation period before formal negotiations begin.

"We will adjourn and give time to all the stakeholders in this project to consult their advisers, consult their people and then return after seven days," Minister Maladina said.

"The facilitators will then begin discussions with the respective interest groups to consider any responses or issues they wish to raise regarding the Director's Proposal."

The Minister said the government had convened a meeting with political leaders from the affected provinces and districts the previous day to address concerns over representation within the forum.

The meeting involved leaders from Gulf and Central provinces, including representatives from Kikori, Kerema, Kairuku and Hiri-Koiari districts, which form part of the Papua LNG project footprint.

Mr Maladina said misinformation suggesting some communities would be excluded from the process needed to be addressed.

"I want to make it very clear that all your voices are represented in the development forum," he said.

"I don't want misleading information going out that people do not have a voice in this process."

While noting that legislation limits the number of individuals who can formally participate in the forum, the Minister said recent amendments to the Organic Law on Provincial Governments and Local-level Governments had broadened representation by allowing districts to participate directly.

He said the reform recognised that not every affected individual could be invited into the negotiations and instead empowered district leadership to represent wider community interests.

To further strengthen participation, Minister Maladina announced additional representation for districts.

Each affected District Development Authority (DDA) has now been authorised to nominate two additional representatives from within the district, including individuals outside the immediate project footprint, to ensure broader community concerns are heard.

"I have used my powers to increase that representation so people who feel they have been left out now have an opportunity to bring their concerns into the forum," he said.

The Minister also outlined the importance of the development forum in determining how project benefits will be distributed once the State's financial interest in the project is established.

Under existing legislation, 20% of the State's share of project benefits is allocated to impacted landowners, local-level governments, district administrations and provincial governments.

Minister Maladina acknowledged that while legislated benefits must remain within the legal framework, the government remained open to considering additional concerns raised through the consultation process.

"We will consider your proposals and your interests," he said.

"If you believe you have been left out, bring your concerns through the appropriate representatives, whether through your DDA, LLG, provincial government or directly through the forum."

The Minister also highlighted the calibre of the independent facilitation team overseeing the consultation process, stressing that its members had been appointed for their experience rather than as representatives of the government.

The panel is chaired by former Petroleum Minister Arthur Somare, who played a leading role during the PNG LNG development process. Other facilitators include former Chief Secretary and Ambassador Sir Isaac Lupari, alongside experienced legal and public sector representatives.

"They are not from government," Minister Maladina said.

"They have been appointed because of their knowledge and experience. Their role is to listen to stakeholders, provide guidance on legal and policy matters, and bring those issues back to government."

He added that communities in Gulf and Central provinces also benefit from strong political representation at the national level, with ministers and Members of Parliament representing the affected regions participating in government decision-making.

The Papua LNG Development Forum is a critical milestone in progressing one of PNG's largest proposed resource developments, providing the formal platform through which government, landowners and provincial stakeholders negotiate the distribution of project benefits before development advances.

Ok Tedi Mining Ltd (OTML) has committed K30 million under Papua New Guinea's Tax Credit Scheme to help fund the construction of the Sisimakam–P'nyang Road, a strategic infrastructure project that will provide road access to the proposed P'nyang LNG development.

The 32-kilometre road carries an estimated cost of K150 million and is primarily financed through an Infrastructure Tax Credit Scheme arrangement between ExxonMobil PNG and the Papua New Guinea government.

Construction will be undertaken in three phases, beginning with 11 kilometres of early works, followed by a 23-kilometre extension to complete the missing link to the P'nyang project site. The final phase will involve sealing the entire road from Sisimakam to the gas project.

The road is expected to improve access to the P'nyang LNG Project, which contains about 4.6 trillion cubic feet of proven natural gas reserves and is regarded as Papua New Guinea's next major liquefied natural gas development alongside the existing PNG LNG project in Hela Province.

OTML Acting Chief Executive Officer Alan Bong said the investment reflected the company's commitment to ensuring resource development delivers lasting benefits for communities and the wider economy.

"What is the value of extracting copper and gold if it does not positively impact the lives of our people?" Bong said.

"Our focus is on ensuring that our operations contribute meaningfully to national development, empower local communities, and support the country's future growth under the Take Back PNG agenda."

The company said the Sisimakam–P'nyang Road forms part of its broader infrastructure programme under the Tax Credit Scheme, which supports the delivery of public infrastructure in mining-affected and remote areas.

As of the end of 2025, OTML said it had invested about K648.86 million across Tax Credit Scheme projects, including transport and other infrastructure aimed at improving connectivity and access to essential services.

OTML, a majority state-owned company, operates the Ok Tedi copper, gold and silver mine in Western Province and has been operating in Papua New Guinea for more than four decades. It is also expanding its mining portfolio through the acquisition of the Misima gold project in Milne Bay Province.

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.

ExxonMobil PNG Limited (EMPNG) recently marked a decade of biodiversity partnership under the PNG LNG Project, bringing together government representatives, conservation partners and stakeholders to celebrate progress and reaffirm a shared commitment to protecting the country's rich natural heritage.

The mini-expo, held at Port Moresby Nature Park to coincide with the International Day for Biological Diversity on May 22, showcased the importance of strong partnerships in delivering sustainable conservation outcomes. This year's global theme, "Acting locally for global impact," underscored the role Papua New Guinea plays in safeguarding biodiversity globally.

Delivering the keynote address, ExxonMobil PNG Limited Chairman and Managing Director Dinesh Sivasamboo highlighted the deep connection between Papua New Guinea's biodiversity, its people and their livelihoods.

"Papua New Guinea's natural heritage is among the richest in the world, and it is closely tied to the culture, identity and future of its people," Sivasamboo said. "As we reflect on a decade of partnership, we recognize both the opportunity and responsibility we share in protecting this biodiversity while supporting sustainable development."

Sivasamboo reaffirmed EMPNG's commitment to balancing development with environmental stewardship, noting that collaboration has been central to the success of biodiversity programs delivered under the PNG LNG Project.

Over the past 10 years, these partnerships have supported protected areas, strengthened the capacity of local scientists and conservation rangers, contributed to global conservation data and led to the discovery of 22 new species.

A key highlight of the event was the launch of the PNG LNG Project's 10-year biodiversity monitoring reports and new species publications. Following an overview by independent ornithologist and environmental consultant Dr. Iain Woxvold, the reports were formally presented to government representatives and partners.

The program also featured panel discussions on the establishment of a National Rangers Association and the development of a Papua New Guinea species Red List, alongside exhibitions and interactive engagements with conservation partners and local high school students.

The event concluded with a renewed commitment from all stakeholders to strengthen partnerships and continue efforts to conserve Papua New Guinea's extraordinary biodiversity for future generations.

The upstream and downstream operators of the Papua LNG Project have been issued amended environmental permits by the Conservation and Environment Protection Authority (CEPA), following more than seven months of consultation between the regulator and project operators.

The amended permits were presented on May 29, 2026, following extensive discussions involving CEPA, upstream operator TotalEnergies EP PNG Limited and downstream operator ExxonMobil PNG Antelope Limited.

According to CEPA, the amendments reflect changes to both the upstream and downstream project designs and are expected to reduce potential environmental and community impacts associated with the development.

Michael Wau, executive director of CEPA's Non-Renewable Resources Environmental Protection Wing, said environmental permits are living documents that must be reviewed and updated to strengthen environmental protection, water resource management and biodiversity conservation.

"That is exactly what TotalEnergies EP PNG Limited and ExxonMobil PNG Antelope Limited have done by reviewing the project and requesting amendments to the environmental permits," Wau said.

The original environmental permits, EP-L3 (1008) and EP-L3 (1030), were issued in March and September 2025. They covered a range of planned activities, including the construction and operation of a Catenary Anchor Leg Mooring (CALM) buoy system and associated marine infrastructure.

Since the permits were issued, revisions to the project design have eliminated the need for several originally planned components, including the CALM buoy system, marine exclusion zones and related infrastructure.

Wau said the changes would significantly reduce environmental impacts, particularly in Caution Bay.

"There will be minimal environmental impact as the condensate pipeline, which was initially permitted to traverse Caution Bay, will instead connect with the Santos-owned Kumul Marine Terminal floating storage and offloading facility," he said.

According to CEPA, the amendments will deliver several environmental and community benefits, including:

• Avoiding extended travel times for local communities caused by marine exclusion zones;

• Preventing disruptions to artisanal and subsistence fishing activities; and

• Protecting sensitive marine and coastal habitats, including mangroves, intertidal zones and benthic environments.

"This is a great win for the environment and the people," Wau said.

TotalEnergies EP PNG Limited said it looks forward to continuing its collaboration with CEPA and other government agencies to ensure the Papua LNG Project is delivered in a sustainable, responsible and efficient manner.

"We are committed to delivering Papua LNG to the highest environmental standards in close partnership with CEPA," the company said.

ExxonMobil PNG Antelope Limited Chairman and Managing Director Dinesh Sivasamboo thanked CEPA for its review and approval of the amendments.

"We greatly value this collaboration and the constructive engagement throughout the process to ensure that the Papua LNG Downstream Project is delivered responsibly and in full compliance with the amended environmental permit," Sivasamboo said.

The amended permits are expected to support the continued development of the Papua LNG Project while reducing environmental impacts and preserving access to marine resources for surrounding communities.

Hiri-Koiari MP Keith Iduhu has called for changes to the governance structure of the PNG LNG project's Kroton Equity Option (KEO), arguing that landowners hosting the project's liquefaction plant have been excluded from decision-making despite their contribution to Papua New Guinea's largest resource development.

Speaking in Parliament on 3 June 2026, Keith Iduhu formally presented a petition on behalf of the PNG LNG Plant Site Landowners of Caution Bay and the people of Central Province, seeking what he described as the rightful recognition and control of benefits negotiated under the 2009 PNG LNG Project Umbrella Benefits Sharing Agreement (UBSA).

Addressing Parliament, Iduhu said the petition sought the implementation of commitments already agreed under the landmark benefits-sharing agreement signed in Kokopo.

"The liquefaction plant, the storage tanks, the marine export terminal — the entire commercial engine of the PNG LNG Project — sits on the customary land of our people in the Hiri-Koiari District," Iduhu said following the parliamentary sitting on 4 June.

"Without our land, there is no plant. Without our land, there is no LNG revenue for this nation. Not a single kina," he added.

The petition centres on the Kroton Equity Option, a key component of the Total Benefits Package negotiated under the Kokopo UBSA between the Independent State of Papua New Guinea, the Central Provincial Government, the Hiri Local-Level Government and project area landowners.

Under the agreement, beneficiaries were granted a commercial option over an undivided and fixed 25.75 per cent shareholding in Kroton Limited, which holds the State's equity interest in the PNG LNG Project.

Iduhu said Clause 6.1(a)(ii) of the UBSA entitled beneficiaries to an estimated 4.22 per cent share of the PNG LNG Project interest, later revised to 4.27 per cent.

He noted that under Clause 6.3.2 of the agreement, the 4.27 per cent Kroton Equity entitlement is divided in a 76:24 ratio between the upstream Petroleum Development Licence (PDL) areas and the downstream pipeline and LNG plant areas.

According to Iduhu, the downstream 24 per cent tranche is further allocated among beneficiaries identified under the agreement, with the allocation structure negotiated and signed by all parties in 2009.

"These numbers were not invented today," he said. "It does not belong to the State as a gift to dispense. They were negotiated, agreed and signed in 2009 in the spirit of the National Constitution. They are binding."

Iduhu's concerns stem from National Executive Council (NEC) Decision No. 64 of 2026, which established the governance framework and board composition for the Kroton Equity Option Special Purpose Vehicle (SPV).

He argued that the current arrangement does not provide direct representation for PNG LNG Plant Site Landowners, despite the project's key infrastructure being located on their customary land.

According to Iduhu, the structure provides a dedicated director for Hides PDL landowners and both a dedicated director and a permanent ex-officio seat for Southern Highlands Province, while Plant Site Landowners and Central Province receive no equivalent representation.

"Yet NEC Decision No. 64/2026 has established a KEO SPV Board that gives our Plant Site Landowners no dedicated director and gives the Governor of Central Province no permanent ex-officio seat," he told Parliament.

"The people on whose land the plant physically stands — the largest single downstream landowner group in the entire agreement — are left without a seat of their own," he added.

Describing the arrangement as unjust and unconstitutional, Iduhu said he would continue advocating for the affected landowners.

The petition calls on Parliament to direct the NEC to amend the governance arrangements by either creating a ring-fenced governance structure within Kumul Petroleum Holdings Limited (KPHL), allowing Plant Site beneficiaries full control of their dividends and equity interests, or establishing a separate Plant Site Kroton Equity Option SPV governed entirely by the beneficiaries.

It also proposes that KPHL be reimbursed only for independently audited costs incurred in managing the equity, without any profit margin.

"We are not asking for someone else's share," Iduhu said. "We are asking to govern and control what is already ours — what was negotiated and signed at Kokopo in 2009. The State does not gift us this equity. It owes it to us."

Iduhu thanked communities from Boera, Papa, Rearea and Porebada for their continued support.

The petition was formally lodged on 2 June and now awaits consideration by Parliament and the NEC.

The issue is expected to attract significant attention across the resource sector as discussions continue over the distribution and governance of benefits arising from the PNG LNG Project, one of Papua New Guinea's largest sources of export revenue and foreign investment.

Papua New Guinea is preparing to enter a new frontier in offshore petroleum exploration, with the country's first ultra-deepwater exploration well scheduled to be drilled within the next two months offshore between Central and Milne Bay provinces.

The Mailu-1 exploration well, jointly developed by TotalEnergies EP Kundu Limited and PETRONAS, is regarded as one of the most ambitious offshore exploration campaigns undertaken in PNG. Industry leaders and government officials believe the project could attract significant foreign investment and help establish the country as an emerging deepwater petroleum province.

Details of the project were presented during a consultative workshop between TotalEnergies and the Central Provincial Government on June 3. The meeting brought together provincial officials, district administrators, sector managers, local leaders and other stakeholders to receive updates on project objectives, operational timelines, environmental safeguards, safety standards and stakeholder engagement plans.

Acting Central Provincial Administrator Magini Raga said the consultation was an important step in ensuring government agencies and communities remained informed about a project with potentially significant implications for the country's energy sector.

The venture could create opportunities for economic growth, employment, business participation and infrastructure development while supporting PNG's long-term energy ambitions.

"This project has the potential to contribute significantly to Papua New Guinea's energy sector while creating opportunities for economic growth, employment, business participation and infrastructure development within our province," Raga said.

Located about 60 kilometres offshore within the Torres Sub-Basin, the Mailu-1 prospect straddles the maritime boundary between Central and Milne Bay provinces. The well will target a large Eocene carbonate structure in water depths exceeding 2,000 metres, making it the deepest offshore drilling operation ever attempted in PNG.

The project is being undertaken through a 50-50 partnership between French energy major TotalEnergies and Malaysian state-owned energy company PETRONAS, which acquired a 50 per cent interest in the licence in September 2024.

If successful, the exploration campaign could open a new phase of petroleum development in PNG by extending exploration activities into offshore areas that have remained largely unexplored.

Deputy Governor for Central Province and President of the Aroma Coast Local Level Government Desmond Baira emphasised the importance of maintaining close engagement between the developer, provincial authorities and local communities as drilling preparations advance.

Baira said clear communication with affected communities would be critical to securing broad support for the project.

"We hope that through these engagements, both the Central Provincial Government and the Amazon Bay Local Level Government will be fully informed so that we can collectively work together to support this ultra-deepwater drilling program, which is a first in Papua New Guinea," Baira said.

TotalEnergies Deputy Public Affairs Manager Ian Marru outlined the regulatory framework governing the project, noting that all activities are being conducted under Petroleum Prospecting Licence 576 and in accordance with PNG's Oil and Gas Act 1998.

Marru stressed that Mailu-1 remains an exploration project and that discussions on resource development, social mapping and broader stakeholder consultations would only proceed if commercially viable hydrocarbons are discovered.

"Remember this drilling is only the exploration stage. Once drilling occurs offshore and we do find gas or oil, then consultations will continue and this is where social mapping and related processes take place," Marru said.

TotalEnergies HSSE Director Claire Viaud said drilling is expected to begin within two months and continue for approximately 47 to 50 days.

Viaud described Mailu-1 as a frontier wildcat well designed to test a previously unexplored geological structure in a region where deepwater exploration has been limited.

"A successful discovery could have far-reaching implications for Papua New Guinea's energy future. We have the highest standards for safety whilst drilling and for the environment," Viaud said.

Beyond its exploration objectives, Mailu-1 is being closely watched by investors and industry participants. A commercial discovery could position PNG among a growing group of countries attracting investment into deepwater petroleum developments.

Recent offshore discoveries in countries such as Guyana and Namibia have demonstrated how successful frontier exploration campaigns can generate substantial government revenues and attract significant foreign direct investment.

The project will also test PNG's capacity to support technically complex offshore energy developments. Ultra-deepwater drilling requires substantial capital investment, advanced technology and rigorous environmental and safety management systems.

During the workshop, stakeholders raised questions about technical challenges, operational costs, environmental protection measures and geological uncertainties associated with drilling at depths exceeding two kilometres below sea level. Project representatives responded by outlining the safety protocols, environmental management plans and regulatory oversight mechanisms that will govern the programme.

Recognising the project's cross-provincial significance, TotalEnergies confirmed that similar consultation sessions will be held with the Milne Bay Provincial Government and the Suau Local Level Government to ensure stakeholders on both sides of the project area remain informed throughout the exploration process.

As preparations continue, government officials and industry stakeholders increasingly view Mailu-1 as a strategic opportunity to expand PNG's petroleum sector into new offshore areas and potentially unlock a significant source of long-term economic growth.

Central Province Governor Rufina Peter has been regularly briefed on developments, alongside national agencies including the National Petroleum Authority, as PNG moves closer to what could become one of the most significant offshore exploration campaigns in its history.

Prime Minister James Marape on 4 June led a high-level government delegation to Kikori in Gulf Province to inspect the proposed venue for the Papua LNG Development Forum and consult local leaders ahead of the anticipated gathering next month.

Joining Marape on the visit were Gulf Governor Chris Haiveta, Petroleum Minister Jimmy Maladina and Finance Minister Thomas Opa.

The prime minister said the visit would enable the national government to engage directly with provincial leaders, landowners and other stakeholders on preparations for the Development Forum, a key milestone in the progression of the Papua LNG project.

"We're heading out to Kikori to discuss the Development Forum with the Gulf leadership. We'll take advice from the Gulf leadership as to what to do as we begin discussions in Kikori," Marape said.

He said the visit was important given the national significance of the Papua LNG project and the need for all stakeholders to have a common understanding of the proposed forum venue and associated infrastructure requirements.

Marape described Papua LNG as one of Papua New Guinea's most important economic development opportunities and a cornerstone of the country's long-term growth strategy.

He said a final investment decision on the project would help underpin a sustained pipeline of petroleum developments over the coming decade, including Papua LNG, P'nyang, Pasca A and other future energy projects.

"These projects will provide long-term construction activity, production opportunities, employment and revenue for Papua New Guinea," he said.

"We're looking at the next 10 to 15 years as a period of sustained energy sector activity, not only in construction but also in long-term production and economic growth."

The prime minister said the country's economy continued to benefit from major resource developments, particularly in the oil and gas sector, while non-resource industries, led by agriculture, remained important contributors to economic growth.

He noted that the non-mining and petroleum sector had recorded growth of about 4%, driven largely by agriculture, which remains the primary source of livelihood for most Papua New Guineans.

Marape reiterated his government's commitment to increasing national participation in resource projects and securing a larger share of benefits for the state and citizens.

"Our government is predominantly known for the principle that we are fighting to take back more benefits for our country," he said.

"This Pangu Administration has made it absolutely clear that we will not compromise on ensuring the State secures around or above 55% of the total benefit from our major resource projects."

He pointed to the New Porgera agreement as an example of the government's approach and thanked resource developers and investors for supporting its objectives through negotiations conducted within existing legal frameworks.

Marape acknowledged that significant socio-economic challenges remained but said the government had maintained its focus on economic growth, greater local participation and improved returns from the country's natural resources.

He said major projects such as Papua LNG and the Wafi-Golpu copper-gold project would generate additional government revenue, strengthen foreign exchange reserves and create long-term opportunities for Papua New Guineans.

"We get Papua LNG and Wafi-Golpu online and get more revenue into the country and ensure our foreign reserves improve for the Government, landowners and developers," he said.

The prime minister also highlighted ongoing petroleum exploration activity, including plans for a deep-water drilling vessel to commence exploration between Central Province and the maritime area of Western Province.

Marape said Papua New Guinea had built a strong reputation as a reliable energy producer, noting that oil exports from the Kumul Marine Terminal had continued uninterrupted since 1990 and LNG exports since 2014.

"PNG has maintained a strong reputation as a dependable energy producer," he said.

"You have wars and conflicts in other parts of the world, but PNG's Kumul Marine Terminal in Gulf Province has not missed an export shipment since 1990, and the PNG LNG export facility has maintained uninterrupted exports since 2014."

Marape recently met TotalEnergies Chairman and Chief Executive Officer Patrick Pouyanné in Paris to discuss Papua LNG and future investment opportunities in the country.

According to the prime minister, Pouyanné reaffirmed the company's confidence in Papua New Guinea and its commitment to future oil and gas investment.

The Papua LNG project remains one of the government's highest development priorities and is being advanced by the state in partnership with project operator TotalEnergies and its joint venture partners.

The Development Forum, required under the Oil and Gas Act 1998, will bring together landowners, provincial governments and the state to negotiate benefit-sharing arrangements and discuss implementation issues ahead of future project milestones.

The upstream development is expected to include nine production wells, a gas processing facility, water injection infrastructure and carbon dioxide reinjection facilities.

Project partners have selected a development concept featuring three electric LNG liquefaction trains integrated with existing LNG infrastructure at Caution Bay, a design intended to reduce the project's carbon footprint while supporting long-term economic growth.

The project is expected to generate employment, business opportunities, government revenue and long-term benefits for landowners, Gulf Province, Central Province and the broader Papua New Guinea economy.

Prime Minister James Marape says Papua New Guinea is poised for a prolonged period of economic growth and investment, underpinned by a pipeline of major resource projects led by Papua LNG, Wafi-Golpu and P'nyang.

Marape said the country's energy sector would remain a central driver of economic activity over the next decade, generating employment, business opportunities, government revenue and broader economic benefits.

Speaking on the outlook for the country's resource sector, the prime minister described Papua LNG as one of Papua New Guinea's most important development priorities, saying the project's eventual Final Investment Decision would pave the way for a series of large-scale energy developments.

"These projects will provide long-term construction activity, production opportunities, employment and revenue for Papua New Guinea," Marape said.

"We're looking at the next 10 to 15 years as a period of sustained energy sector activity, not only in construction but also in long-term production and economic growth."

In addition to Papua LNG, Marape cited the Wafi-Golpu copper-gold project in Morobe Province, the P'nyang gas project, Pasca A and other future petroleum developments as key investments expected to support economic expansion.

He said Papua New Guinea's economy continues to be supported by major resource developments, particularly in the oil and gas sector, while agriculture and other non-resource industries remain important contributors to growth.

According to Marape, the non-mining and petroleum sector has been growing at approximately 4 percent, driven largely by agriculture, which remains the primary source of livelihood for most Papua New Guineans.

The prime minister reiterated his government's commitment to securing a greater share of benefits from resource projects for the state, landowners and local communities.

"Our government is predominantly known for the principle that we are fighting to take back more benefits for our country," he said.

"This Pangu Administration has made it absolutely clear that we will not compromise on ensuring the State secures around or above 55 percent of the total benefit from our major resource projects."

Marape pointed to the New Porgera Limited agreement as an example of the government's approach to resource negotiations, saying the administration remains focused on increasing national participation while maintaining constructive relationships with investors.

"The resource sector industry knows very well our vision and where we want to take the country. We want to secure above 55 percent as the total stake for the State," he said.

"I want to thank all resource developers, investors and partners for understanding our position. This is being achieved within our existing laws and through good, amicable negotiations that benefit all stakeholders."

Marape acknowledged that significant socio-economic challenges remain but said his government has stayed focused on growing the economy, increasing local participation in resource developments and ensuring Papua New Guinea receives a larger share of returns from its natural resources.

He said the successful development of Papua LNG in Gulf Province and Wafi-Golpu in Morobe Province would strengthen government revenues, improve foreign exchange reserves and create long-term economic opportunities.

"We get Papua LNG and Wafi-Golpu online and get more revenue into the country and ensure our foreign reserves improve for the Government, landowners and developers," Marape said.

Kumul Petroleum Holdings Limited, or KPHL, has launched a renewed push to strengthen governance, transparency and accountability across its operations following a strategic alignment workshop that brought together the company's board, senior executives and technical managers in Port Moresby.

The workshop, held at the Grand Papua Hotel, coincided with the transition of board leadership from former chairman Gerea Aopi to incoming chairman Isaac Lupari and focused on reinforcing internal coordination and establishing a common direction for the State-owned petroleum company's future growth.

Lupari said the workshop was designed to reset operational priorities, build a shared understanding of KPHL's current position and strengthen working relationships across the organisation.

"The purpose is not to prejudge any matter, but to build a stronger institutional foundation for KPHL going forward," Lupari said.

"Our immediate priority is to restore, strengthen and institutionalise governance frameworks across all key areas of KPHL's operations, including investment approvals, financial disbursements, procurement, financial delegation, marketing, and community and stakeholder support protocols. Transparency and accountability must be embedded in the way KPHL operates."

The workshop enabled directors and management to review the company's operational, financial, investment and governance priorities and identify areas requiring closer oversight as part of KPHL's forward work programme.

According to the company, discussions covered KPHL's existing asset portfolio, project performance, ongoing initiatives and future development opportunities.

Projects reviewed included the Motukea Fuel Facility, the Fabrication and Training Facility, Special Economic Zone infrastructure at Caution Bay, seismic exploration programmes and development options for both onshore and offshore petroleum licences.

Lupari said strong governance and disciplined investment management were essential given KPHL's role in managing petroleum interests on behalf of the State and the people of Papua New Guinea.

"Strong governance, clear internal controls, disciplined investment decision-making and transparent reporting are essential to maintaining public confidence and ensuring that national petroleum assets are managed responsibly," he said.

The workshop also examined procurement, project delivery and governance processes, with participants seeking to strengthen internal controls, clarify responsibilities and ensure future decisions comply with applicable laws, delegated authorities and recognised corporate governance standards.

KPHL said the discussions reflected the company's recognition of its public mandate as Papua New Guinea's national petroleum and energy company and its responsibility to protect and enhance the value of national energy assets.

The board further emphasised the importance of clear and responsible public communication, noting that stakeholder engagement and disclosure practices should support confidence in the company while avoiding unnecessary speculation.

Lupari said the company was focused on building a stronger institution capable of protecting public wealth, maximising asset value and supporting national development.

Following the workshop, the board and management are expected to develop a strategic roadmap focused on commercial viability, disciplined investment management, strengthened internal controls, improved reporting systems and the responsible development of petroleum opportunities.

KPHL said it would continue consulting with key State stakeholders, including the Trustee and the Minister Delegate, to ensure alignment with government expectations and maintain accountability to the people of Papua New Guinea.

A new classroom and staff housing project is underway in the remote Baina community in Gulf Province as part of efforts to improve access to education within the PNG LNG pipeline corridor.

Located along the Kikori River near the border with Southern Highlands Province, Baina Village is one of the most isolated communities in the project area, accessible only by air and river transport. The village is situated about 97 kilometres from Moro and Mendi, and approximately 78 kilometres from Kikori Station.

Home to more than 4,000 residents across four hamlets in Segment 6 of the PNG LNG project area, Baina has long faced challenges in accessing essential services due to its geographical isolation.

To address those challenges, Gas Resources Pipeline Ltd., in partnership with the Mineral Resources Development Company, or MRDC, is constructing a new double classroom and staff house at Baina Primary School under the Community Investment Trust Fund, or CITF, programme.

Foundation works have already been completed, with the facilities set to include solar power systems and other essential fittings to support both classroom learning and teacher accommodation.

Augustine Mano acknowledged the logistical and financial challenges involved in delivering infrastructure to remote communities such as Baina.

“These are some of the most remote communities in the country, where access is extremely difficult and the cost of delivering services is very high,” Mano said.

“It is not an easy task, but Gas Resources Pipeline Ltd must be commended for its vision in investing in its people — especially in the education of its children, who are the future of these communities.”

According to MRDC, the project is expected to ease classroom overcrowding, improve learning conditions and support teacher retention in a location where attracting educators has traditionally been difficult.

Baina Primary School head teacher Robert Kawi said the school had experienced growing enrolment in recent years despite limited infrastructure.

“When I first arrived, we only had one double classroom for a growing student population,” Kawi said.

“Education here has always been a struggle due to our location and limited facilities. Today, we are seeing real progress. With more classrooms and staff housing, we can take in more students and improve the quality of teaching.”

Student enrolment at the school has grown to nearly 400, while teaching positions have increased from two to six in recent years.

Kawi said the provision of proper staff housing would help address long-standing challenges faced by teachers assigned to remote communities.

“Because of our geographical location, it is very difficult for teachers to travel here and sustain themselves. Proper housing will make a big difference in attracting and keeping teachers in Baina,” he said.

MRDC said the Baina Primary School project forms part of its broader investment in education infrastructure across project-impacted communities through the CITF programme, which supports the delivery of classrooms, staff housing and other essential infrastructure in remote areas.

Kumul Petroleum Holdings Limited says it is seeking to advance smaller gas discoveries toward commercial development as Papua New Guinea moves to position itself within the global energy transition.

Speaking at the 41st Australia Papua New Guinea Business Forum and Trade Expo in Brisbane, Kumul Petroleum Chairman Gerea Aopi said Papua New Guinea still holds significant gas potential despite declining oil production.

“Whilst oil production has tapered off, PNG’s gas future is just beginning,” Aopi said.

“There is plenty of gas already discovered and a high likelihood of further gas discoveries in the next few years. PNG is not short of gas resources, however, we are short of time in the rapid transition towards renewable energy sources.”

Aopi said Kumul Petroleum is currently in discussions with other parties regarding licenses where gas discoveries have already been made, including Petroleum Development License 10 in Western Province.

The chairman said the company wants to ensure that smaller gas fields are also progressed toward development in the years ahead alongside larger LNG projects.

As a 19.4 percent owner in the PNG LNG Project, Aopi said Kumul Petroleum welcomed the early retirement of project debt late last year.

“Our priorities are clear: This additional PNG LNG Project income will be used to meet our cash calls, repay outstanding loans, and develop the licences where we are Operator — Pandora, Kimu, Barikewa and Uramu — to commerciality and fund future investments, such as acquiring equity in the forthcoming Papua LNG Project,” he said.

Aopi added that one of Kumul Petroleum’s main priorities is securing Papua New Guinea’s maximum mandated equity position in the Papua LNG Project.

“Kumul Petroleum’s principal focus at present is ensuring that we are in fact in a position to take up PNG’s maximum mandated equity position in the forthcoming Papua LNG Project and are able to carry MRDC in this shareholding,” he said.

According to Aopi, the key challenge for Papua New Guinea is not the availability of energy resources, but the speed and manner in which those resources are developed.

“The key message was not that PNG lacked the energy resources to drive growth but how the resources were developed and how soon,” he said.

Fuel suppliers represented by the Papua New Guinea Chamber of Resources & Energy (PNG CORE) said they would transition to market-based pricing effective May 15 following delays and uncertainty surrounding the government’s fuel subsidy reimbursement program.

In a statement, PNG CORE, which represents the country’s fuel importers and suppliers, acknowledged the government’s efforts to shield consumers from rising global fuel prices driven by geopolitical tensions and international supply disruptions through a fuel subsidy program.

The chamber said fuel prices in Papua New Guinea are regulated by the Independent Consumer and Competition Commission (ICCC) and are based on international market benchmarks, including Singapore fuel prices and applicable market premiums.

While the ICCC announced substantial fuel price increases effective April 8, the government intervened through a subsidy mechanism that allowed retail fuel prices to remain at March levels, PNG CORE said.

However, the industry body said the administration of the subsidy program had presented challenges for suppliers, including reimbursement delays and uncertainty over its continued implementation.

“The administration of the subsidy program has, however, presented challenges, including delays in reimbursement and some uncertainty regarding its ongoing implementation,” PNG CORE said.

According to the chamber, industry participants have been carrying subsidy costs in advance, while delays in reimbursements have contributed to uncertainty surrounding supply arrangements.

PNG CORE said fuel suppliers had “no alternative” but to transition to market-based pricing in line with the May Import Parity Price and applicable product premiums effective May 15.

The chamber said the change could affect the ability of some retail outlets and service stations to maintain continuous fuel supply.

PNG CORE emphasized that the issue was “not a supply availability issue,” but rather the financial pressure associated with supplying fuel below cost without timely reimbursement and certainty around the subsidy mechanism.

“Continuing to supply fuel materially below cost, without timely reimbursement and certainty, places significant pressure on suppliers and creates unacceptable risks to ongoing fuel security,” the statement said.

The chamber noted that fuel importation involves significant upfront financial commitments, including foreign exchange requirements secured months in advance.

PNG CORE said industry participants remained committed to working with the government toward a long-term solution that would provide greater certainty for consumers, suppliers and the state.

“The industry remains committed to supporting the people and government of Papua New Guinea,” the chamber said.

Kumul Petroleum Holdings Limited has announced an upcoming change in board leadership, with chairman Gerea Aopi, MBE, set to hand over the role to fellow director Isaac Lupari, CBE GCL, effective May 19.

The transition follows requirements under the Kumul Petroleum Holdings Limited Act, which mandates the retirement of directors upon reaching the age of 72. Aopi will reach the retirement age milestone on May 18 and has formally advised trustee-shareholder Prime Minister James Marape of his decision to step down.

Kumul Petroleum said the leadership transition process between the two directors had been underway since mid-April to ensure continuity and a smooth handover.

Aopi said it had been a privilege to serve as chairman during what he described as a challenging period for the national oil and gas company.

“Since taking office in the last quarter of 2025, my fellow directors and I have made strong progress — we have implemented strict cost containment and strengthened financial controls, refocused capital investment on core petroleum assets, restored governance, signed off on the 2022 audited accounts and advanced major projects,” Aopi said.

“KPHL has been stabilised due to the resolve and commitment of the current board. However, the work is far from finished, and I am certain that Mr Lupari will continue to progress the initiatives that we have started.”

Lupari acknowledged Aopi’s contribution to the company, saying his extensive experience in the petroleum industry had played a significant role in the organisation’s ongoing reforms and restructuring efforts.

“Gerea’s vast experience and knowledge in the petroleum industry has contributed significantly to the ongoing organisational changes, and the board thanks him for his leadership,” Lupari said.

He also thanked Prime Minister Marape for appointing him to the board and expressing confidence in his leadership.

Lupari said Kumul Petroleum had received another clean audit opinion for 2022, extending the company’s record of unqualified audits since its establishment in 2014.

“This is good news for Kumul Petroleum at this critical time when our main focus is preparing to take up equity in the forthcoming Papua LNG Project,” he said.

Both directors said completion of the 2022 audit would help accelerate the finalisation of the company’s 2023 and 2024 audits before the end of the year.

Lupari said Kumul Petroleum remained committed to working closely with the government, industry partners and financiers to support sustainable growth and national development objectives.

Kumul Petroleum acting managing director Dr Luke Liria thanked Aopi for his leadership over the past eight months, particularly his focus on governance and organisational integrity.

“Chairman Aopi prioritised both general and project governance, ensuring our operations are conducted with the utmost integrity and transparency,” Liria said.

“We welcome Mr Lupari, who brings many years of experience in the government sector. I look forward to continuing with Ambassador Lupari to grow and expand KPHL as a reputable national oil company in the nation and the region.”

Kumul Petroleum said it remained focused on supporting the development of Papua New Guinea’s natural resources sector while contributing to national socio-economic development through its projects and investments.