Fair Distribution of Equity Under the Law on Oil and Gas in PNG

The Oil and Gas Act of 1998 is a crucial piece of legislation in Papua New Guinea (PNG) that regulates the exploration, production, and distribution of oil and gas resources in the country. This law is responsible for setting up the framework for the distribution of equity in the oil and gas sector in PNG, a process that is overseen by the Kumul Petroleum Holdings Limited.

Kumul Petroleum Holdings Limited is a state-owned entity that was created in 2014 to oversee the government's interests in PNG's oil and gas sector. Its primary role is to manage the government's equity in oil and gas projects in PNG and ensure that the country benefits from the revenues generated from these resources.

Under the Oil and Gas Act of 1998, Kumul Petroleum Holdings Limited is responsible for negotiating the government's share of equity in oil and gas projects in PNG. The company works closely with international oil and gas companies to ensure that the government's interests are protected, and the revenues generated from these projects are distributed equitably.

One of the ways Kumul Petroleum Holdings Limited distributes equity in the oil and gas sector in PNG is through participating interests (PIs). Participating interests are the shares of equity that companies involved in oil and gas projects in PNG must allocate to the government. These shares are calculated based on the size and potential of the project and are negotiated by Kumul Petroleum Holdings Limited on behalf of the government.

In addition to PIs, Kumul Petroleum Holdings Limited also receives dividends from oil and gas projects in PNG. These dividends are a share of the profits generated by these projects and are paid to the government as a return on its investment.

Kumul Petroleum Holdings Limited also plays a crucial role in promoting local participation in the oil and gas sector in PNG. The company works to ensure that local businesses and individuals benefit from the revenues generated from oil and gas projects in the country. It does this by encouraging international oil and gas companies to work with local suppliers and contractors, which helps to create jobs and build local capacity.

In conclusion, the distribution of equity in the oil and gas sector in PNG is a complex process that is overseen by Kumul Petroleum Holdings Limited. This state-owned entity is responsible for negotiating the government's share of equity in oil and gas projects in PNG, ensuring that the country benefits from the revenues generated from these resources. Kumul Petroleum Holdings Limited also promotes local participation in the sector, helping to create jobs and build local capacity. The Oil and Gas Act of 1998 provides the framework for this distribution of equity, ensuring that PNG's oil and gas resources are managed in a responsible and equitable manner.

 

 

 

 

Location: Waigani, Port Moresby, Papua New Guinea

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