Gas licence holders warned to develop reserves or lose licenses

Petroleum Retention Licence [PRL] holders could lose their licences if they fail to develop their gas resources.

Petroleum Minister Jimmy Maladina has directed the National Petroleum Authority to forfeit the licences of permit holders who do not develop their gas reserves in line with the conditions of the Oil and Gas Act.

Speaking during PNG Resources Week, Mr Maladina said licence holders must progress the commercial development of the gas resources they currently hold.

"Failure to comply with valid statutory instruction will result in forfeiture of those licences," he said.

Under the Oil and Gas Act, a Petroleum Retention Licence is issued for five years and can only be renewed twice for another five years each.

The minister also updated industry representatives on the proposed 'Production Sharing Contract' policy, saying consultations with the industry began in October 2025 and ended in March this year.

Meanwhile, Mining Minister Solen Loifa said the government is proposing changes to the Mining Act to improve regulatory services and increase investor confidence.

The proposed amendments include extending the exploration licence term from up to two years to five years and introducing a Mining Retention Licence.