Parliament today (12.03.25) passed two laws for the establishment and operation of the National Petroleum Authority (NPA), a new body that will take over as the regulator of the petroleum sector in the country.
The National Petroleum Bill 2025 was voted 84 to 0 into law, while the Oil and Gas Act Amendment Bill 2025 was passed on voices. Both bills were presented to Parliament by Minister for Petroleum, Hon. Jimmy Maladina.
These Acts of Parliament now pave the way for the set-up and operation of NPA, which will take over from the Department of Petroleum and Energy as the administering arm of the petroleum sector under the Oil and Gas Act 1998.
Prime Minister Hon. James Marape, in a press conference after Parliament session, highlighted the importance in the role NPA would play in underpinning the country’s petroleum sector.
“The National Petroleum Authority will be the regulator of this big sector that contributes over 50 percent of the country’s GDP and economy.
“Petroleum is an important sector, but the Oil and Gas Act has carried us for the last 20 years, and so it is timely that we change to keep up with a bigger economy and a more robust hydrocarbon industry, petroleum, and gas projects.
“Under this new framework and structure, regulations, licensing, administration of our petroleum and gas sector will be governed. This will give us a platform for us to move into hybrid production-sharing regime that has Papua New Guinean characteristics,” said Prime Minister Marape.
The Prime Minister gave the assurance that investors have nothing to fear but to have the confidence that their investments would be better protected un- der the revised mechanism.
“This work will include protecting the return on investors so that they too are making money at the same time but that we are clear on PNG’s entitlements in taxes, royalty, equity, levies and so on.
“So I give assurance to our industry stakeholders out there. The restructure happening is not to diminish their presence or their value, but to ensure that we operate in clarity of regulation and the environment, and that their interest – in as far as return on investment is concerned – is secured.
“This authority will make it easier for all of us,” said PM Marape.
The Prime Minister said this work to set up NPA will continue into the country’s 50th year which begins on 16 September until 15 September 2026.