Board appointments, levy implementation and upcoming legislative amendments 2 min read
The Papua New Guinea Government has announced a new seven-member board of the National Petroleum Authority, marking the next step in the country’s resources sector reform.
This follows the commencement of the National Petroleum Authority Act 2025 and the Oil and Gas (Amendment) Act 2025 on 9 April 2025, which formally replaced what remained of the Department of Petroleum and Energy, following the separation of the Energy wing in 2021.
In this Insight, we outline the key changes and what’s likely to follow.
Key takeaways
- A seven-member board now leads the new National Petroleum Authority, replacing the former Department of Petroleum and Energy.
- The Authority can apply a 0.5% levy on petroleum producers and exporters.
- Further updates to fees and charges are expected soon.
National Petroleum Authority Board and staff
The Act indicates that the Petroleum Advisory Board constituted under the Oil and Gas Act 1998 will continue existing under the oversight of the new National Petroleum Authority Board.
The Authority will also have a managing director who may appoint its staff.
The new Act indicates that all staff at the Department of Petroleum and Energy will become staff of the new Authority and remain in their current positions, until those positions are confirmed or made redundant.
National Petroleum Authority Levy
Now that the Act has commenced, the Authority may publish notice in the National Gazette of a National Petroleum Authority levy on all petroleum producers and exporters in PNG at the rate of 0.5% of gross sales revenue of crude oil, gas, liquified natural gas, condensates and liquid petroleum gas.
As we previously explained, the new Act does not define the term 'petroleum producers' or exporters. In the absence of these definitions, we assume that this is a reference to the holders of Petroleum Production Licences, similar to the levy imposed on mining companies under the Mineral Resources Authority Act 2018. It is not clear how the levy will apply in situations where there are fiscal stability arrangements in place under existing gas agreements.
Changes to other laws
Consequential amendments have also been made to the Oil and Gas Act, to bring it into alignment with changes made under the National Petroleum Authority Act.
What's next?
Amendments to the schedules of fees and charges under the Oil and Gas Act, and the introduction of fees and charges under the Unconventional Hydrocarbons Act 2015, may occur soon.
Speak to us if you'd like to know more about what these changes mean for you.