PETROLEUM Minister Hon. Jimmy Maladina says Papua New Guinea is on the path to a stronger and more competitive petroleum industry as the Government advances major LNG projects, reforms regulations and strengthens opportunities for local businesses.
Speaking at the PNG CORE National Content Conference, Minister Maladina said PNG remained well positioned to benefit from growing regional demand for reliable and responsible energy supplies.
He said global energy uncertainty had highlighted the importance of countries with stable resources and strong investment frameworks, adding that PNG continued to attract international interest because of its petroleum potential, workforce and commitment to responsible development.
Minister Maladina said the Government was working closely with project partners to move the Papua LNG Project and Pasca Gas Project towards Final Investment Decision (FID).
The Papua LNG Project Development Forum was launched on July 10, 2026, and discussions are progressing between the Government and project partners.
He said the Government was optimistic that a Development Agreement would be signed within the next month, paving the way for the granting of a Petroleum Development Licence and enabling the joint venture partners to proceed towards FID.
The US$14.5 billion Papua LNG Project is expected to generate significant economic activity during its anticipated five-year construction period, including employment and business opportunities for Papua New Guinean companies.
Minister Maladina urged project developers, contractors and suppliers to prioritise local workforce development, training and business participation.
The Minister also highlighted exploration activity, including the Mailu-1 deepwater exploration well being undertaken by TotalEnergies and PETRONAS.
He said the well was progressing towards its targeted reservoir and the Government remained hopeful of positive results.
Minister Maladina confirmed that Gulf of Papua offshore blocks would be prepared for future petroleum bid rounds once fiscal reforms were completed.
A new exploration block bid round is expected next year.
He also called on Petroleum Prospecting Licence holders to fulfil their approved work programs and carry out genuine exploration activities.
“The Government will be strict on National Content requirements,” he said, urging companies to prioritise Papua New Guinean workers and service providers.
Minister Maladina said the Government was progressing reforms to introduce a Production Sharing Contract (PSC) framework aimed at improving transparency, certainty and competitiveness in the petroleum sector.
The PSC Reform Policy consultation process was completed earlier this year after receiving input from industry stakeholders.
He acknowledged PNG CORE’s contribution to the reform process and said the reform would deliver improved outcomes for both the State and investors.
Legislation to support the PSC framework is expected to be introduced this year.
The Minister reaffirmed the Government’s commitment to increasing participation of Papua New Guinean businesses and workers across the petroleum value chain.
The Petroleum Sector National Content Policy, endorsed in
2022, will be implemented through a dedicated National Content Division within the new National Petroleum Authority structure.
Minister Maladina said operators, licence holders and contractors must comply with national content requirements by creating more opportunities for employment, training and local business development.
Minister Maladina said the National Petroleum Authority (NPA) was moving closer to full establishment, with its organisational structure approved by the NPA Board.
The structure will be submitted to the Department of Personnel Management for review and endorsement, with recruitment expected to begin after August.
He said the NPA would strengthen regulation, technical capability, petroleum data management and stewardship of PNG’s petroleum resources.
The Government, through the Ministry responsible for Petroleum and the NPA in partnership with PNG CORE, will host a petroleum investment session alongside the APEC Economic Leaders’ Meeting in Shenzhen, China, in November 2026.
The event will target investors across the petroleum value chain, including upstream, midstream, downstream and specialist service sectors.
Minister Maladina said PNG would use the opportunity to promote investment opportunities and engage directly with international industry leaders.
He said the Government’s goal was to build a modern, competitive and sustainable petroleum industry that delivers long-term benefits for all Papua New Guineans.