Govt laws enticing giant international investors

Konopa Kana | Post Courier

The Twelfth Mines and Petroleum 2012 bi-annual conference that is schedule to be held in Sydney, Australia next month is part of the resource industries strategy to market PNG’s highly lucrative sector in the international arena to high profile investors.

This PNG conference that will be held in Sydney’s Hilton Hotel, the hub of the commercial networking on December 3-5 will see the Prime Minister Peter O’Neill give his keynote address, with Minister for Petroleum and Energy William Duma and Minister for Mining Bryon Chan.

The conference will see international investors, politicians, bureaucrats, international media and delegates attending this bi-annual meet which is segmented into eight sessions over three days.

It will focus on the mining industry’s exploration, development and production phase.

The theme of the conference is ‘foundation for growth and prosperity: with success comes responsibility’ and topics that will be highlighted in the conference are funding resource exploration and development for government and industry in PNG, plus PNG petroleum and mining exploration update.

Talisman Country Director Richard Kassman said that a lot of Giant Corporations in the mining and petroleum sector are prepared to come into the country because of the government’s intervention in amending environment and conservation laws.

Mr Kassman said that for instance when Talisman and Mitsubishi Corporation came into Western province there was a lot of enquires about the environment condition where the exploration will take place because of the high risk that is involved that could affect the price of markets shares.

He said that Mitsubishi was satisfied with the current system of governance and compliance that are in place which makes PNG a very attractive destination for giant investors in the likes of Shell (Dutch), Chevron (USA), Exxon Mobil (USA), Talisman (Canada), Barrick (Canada etc.

“Exploration is a very expensive exercise which can take up to 20 years until the actual production takes place and can cost up to US$40-50 million just to drill a well.

“I think we need to thank the previous government to establish a tax and compliance regime of the oil and gas act that makes PNG an attractive location for world class developers to come and invest in our country,” Mr Kassman sai.

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Filed under Exploration, Financial returns, Papua New Guinea

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