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Page 1 of 131 Papua New Guinea Extractive Industries Transparency Initiative (PNGEITI) Report on Outcome of the Scoping Study on Beneficial Ownership (BO) March 2017
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Papua New Guinea Extractive
Industries Transparency
Initiative (PNGEITI)
Report on Outcome of the Scoping Study on Beneficial Ownership (BO)
March 2017
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Contents
List of Abbreviations ............................................................................................................................... 5
1. Executive summary ......................................................................................................................... 6
2. Introduction ........................................................................................................................................ 9
2.1 Overview of the engagement ................................................................................................ 9
2.2 Objectives ................................................................................................................................... 9
2.3 Purpose of Report ..................................................................................................................... 9
2.4 Report Structure ...................................................................................................................... 10
3. Background ...................................................................................................................................... 10
3.1 What is EITI? ............................................................................................................................. 10
3.2 PNGEITI ..................................................................................................................................... 11
4. Scoping Study Approach.............................................................................................................. 13
4.1 Methodology ............................................................................................................................ 13
4.2 Entities ....................................................................................................................................... 14
4.3 Participants list ........................................................................................................................ 14
4.4 Consultation Pack ................................................................................................................... 15
4.5 Stakeholder Consultations ................................................................................................... 16
4.5.1 Face to face consultations ............................................................................................. 16
4.5.2 Written questionnaire responses ................................................................................ 16
4.6 Identification of Public Sources of Information to determine Beneficial Owners .. 17
4.6.1 IPA registry – registrar of companies in PNG .......................................................... 17
4.6.2 Public listed companies ................................................................................................. 20
4.6.3 Company Annual Reports ............................................................................................. 20
4.6.4 MRA register – Mining Tenements ............................................................................. 21
4.6.5 DPE register – Oil and Gas Tenements ...................................................................... 21
4.6.6 Other public sources of information .......................................................................... 22
5. Scoping Study ................................................................................................................................. 23
5.1 Discussion of national priorities linked to BO disclosure ............................................. 23
5.1.1. Key findings on discussion on national priorities linked to BO disclosure ...... 24
5.2 Understanding compliance with EITI Standards in PNG .............................................. 24
5.2.1.1 Key findings in terms of PNG’s compliance with the EITI Standard - Provision 2.5 on Beneficial Ownership ......................................................................................... 26
5.3 Review of legal and institutional framework related to BO ......................................... 26
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5.3.1 Background to the Papua New Guinea Legal System ........................................... 26
5.3.2 Legal Framework and Fiscal Regime for Extractive Industries ........................... 27
5.3.3 Licence Allocations ......................................................................................................... 29
5.3.3.1 Mining ................................................................................................................................ 29
5.3.3.2 Oil and Gas and Hydrocarbons.................................................................................... 29
5.3.4 Register of Licenses ........................................................................................................ 30
5.3.5 Contracts ........................................................................................................................... 31
5.3.6 Beneficial Ownership ..................................................................................................... 32
5.3.7 State Participation in the Extractive Sector .............................................................. 36
5.3.7.1 Equity Participation......................................................................................................... 36
5.3.7.2 Royalty Participation ...................................................................................................... 37
5.3.7.3 Participation as Facilitator ............................................................................................. 38
5.3.7.4 Accounting for State Participation .............................................................................. 41
5.3.8 Requirement for Reform to Comply with EITI Reporting Framework ............... 41
5.3.8.1 What Law Making Action is Required? ...................................................................... 41
5.3.8.2 Privacy and Secrecy Laws ............................................................................................. 42
5.3.9 Regulators in PNG ........................................................................................................... 43
5.3.9.1 Investment Promotion Authority ................................................................................ 43
5.3.9.2 Mineral Resources Authority........................................................................................ 43
5.3.9.3 Department of Petroleum and Energy ....................................................................... 44
5.3.9.4 Internal Revenue Commission (IRC) .......................................................................... 44
5.3.9.5 Papua New Guinea Customs Service (PNG Customs Service) ........................... 44
5.3.9.6 Mining & Petroleum Royalties ..................................................................................... 45
5.3.10 Key findings on the review of legal and institutional framework in PNG related to BO..................................................................................................................... 45
5.4 Examination of PNG’s context relating to landowners’ participation in extractive operations and recommendations on how to incorporate this in beneficial ownership disclosures ........................................................................................................... 45
5.4.1.1 Key findings of PNG’s context relating to landowners’ participation in extractive operations ...................................................................................................... 45
5.4.1.2 Recommendations on how to incorporate landowners’ participation in extractive operations ...................................................................................................... 46
5.5 Assessment of gaps and barriers that will affect full compliance with the EITI Standard’s requirements on beneficial ownership ........................................................ 46
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5.6 Recommendations on how to address such gaps with clear timelines departmentalized into 9 salient sections: ......................................................................... 47
6. Appendix A – Phase 2 - Scoping Study detailed task list ..................................................... 53
7. Appendix B – TOR list of PNGEITI Reporting Entities ........................................................... 56
8. Appendix C - PNGEITI National Secretariat & PNGEITI MSG list to KPMG; 369 deep .. 61
9. Appendix D – 203 contact entities list – to PNGEITI for input ............................................. 74
10. Appendix E – Final stakeholder entities list of 52 stakeholders .......................................... 80
11. Appendix F – PNGEITI BO Consultation Pack (48 pages) ..................................................... 82
12. Appendix G – PNGEITI Consultations Status Chart as at 1st February 2017 ................. 130
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List of Abbreviations Abbreviation In full ADB Asian Development Bank ARBN Australian Registered Body Number ASIC Australian Securities & Investment Commission ASX Australian Securities Exchange BO Beneficial Owner CSO Civil Society Organisation DPE Department of Petroleum and Energy EITI Extractive Industries Transparency Initiative GoPNG Government of Papua New Guinea GST Goods and Services Tax IPA Investment Promotion Authority IRC Internal Revenue Commission MRA Mineral Resources Authority MRDC Mineral Resources Development Company NEC National Executive Council NEFC National Economic and Fiscal Commission OECD Organisation for Economic and Co-operation Development OLPLLG Organic Law on Provincial and Local Level Governments PEP Politically Exposed Person PNG Papua New Guinea PNGEITI Papua New Guinea Extractive Industries Transparency Initiative
PNGEITI MSG Papua New Guinea Extractive Industries Transparency Initiative Multi-Stakeholder Group
POM SOX Port Moresby Stock Exchange SOE State Owned Enterprise SWG State Working Group SWT Salary and Wage Tax TOR Terms of Reference
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1. Executive summary The PNG Extractive Industries Transparency Initiative (PNGEITI) was established in 2013 to promote revenue transparency and accountability in the country’s mining and petroleum sectors. The EITI Board has agreed that by 1 January 2020 all implementing countries must ensure that corporate entities disclose the identity of their beneficial owners.
In preparation for this requirement, PNGEITI released a terms of reference in 2016 requesting the undertaking of a beneficial ownership project, encompassing a scoping study on beneficial ownership and the development of a roadmap based on the scoping study. The project is aimed at ensuring that extractive companies’ beneficial owners and related information is disclosed through the EITI reporting process.
In September 2016, KPMG was appointed by the PNGEITI National Secretariat and the PNGEITI MSG to undertake a Scoping Study on Beneficial Ownership (BO) and the Development of a Roadmap.
Approach
KPMG’s approach to the project included desktop research as well as feedback gathered during stakeholder consultations (discussed in more detail below).
Identification of participants
In order to identify relevant participants, an initial list of PNGEITI reporting entities was provided in the TOR covering large scale mining project companies, small scale mining project companies, oil project companies and gas project companies. From this list, KPMG identified an initial participant group of 46 reporting entities plus seven relevant government agencies and submitted this to EITI for feedback. PNGEITI then provided a list of 369 licence types as a comprehensive list from which to select participants. KPMG ultimately shortlisted 52 participant entities having regard to:
• Equal representation of a cross-section of the industry
• A combination of public and private entities bidding for, investing in and operating in the extractive assets of PNG
• Ensuring representation of key organisations playing an important role in mining and oil & gas industries
In order to gather information, consultations were planned with all 52 shortlisted entities through two different mediums:
1. Face to face consultations
2. Written questionnaire
We selected 30 stakeholders to participate in face to face consultations, however despite various follow ups, only 11 actually participated.
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In addition, we selected the remaining 22 stakeholders to participate via written questionnaires. Despite various follow ups, only 2 of the 22 stakeholders provided a response.
Public information available to determine BO
In addition to the stakeholder consultations, we conducted desktop research through a range of sources in order to determine the level of BO information available regarding reporting entities.
The sources we utilised include:
• IPA website • Listing of public stock exchanges • Company annual reports • MRA register • DPE register • ARBN website • Company websites • ASIC website
Overall, the level of detailed BO information available public, to the level of what would be considered to be sufficient for EITI purposes, was limited in most cases.
Review of legal and institutional framework related to BO
The extractive industries in PNG are governed primarily by three Acts of Parliament as detailed below. Each piece of legislation establishes that all minerals and petroleum in PNG is the property of the State.
• Mining Act 1992
• Oil & Gas Act 1998
• Unconventional Hydrocarbons Act 2015
The State being the owner of all minerals and petroleum issues licences to persons to explore and develop minerals and petroleum in PNG. The issuance and renewal of the licences are governed by these three pieces of legislation.
These three pieces of legislation also all require a register of licences to be kept. These registers are public documents maintained by the MRA and DPE which are the State agencies responsible for the management of the extraction of minerals and petroleum. The registers that have been established clearly record the legal owners of direct or indirect interests in the various licences issued under those pieces of legislation. In addition, the Securities Act 1997 contains provisions relevant to reporting beneficial ownership and control for companies to whom the Securities Act applies.
The Mining Act, Oil & Gas Act and the Unconventional Hydrocarbons Act each govern the terms on which the State may participate in extractive industries and these Acts also set out the participation entitlements of the provincial governments, local level governments and the landowners. In respect to each of its differing roles, the State is
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required by the Public Finances (Management) Act to account for its activities and the financial costs or rewards for these activities.
Conclusion
In conclusion, we have provided 33 recommendations to address what we see as the key gaps / barriers that would be inherently present during the course of the project and would affect full compliance with the EITI standard’s requirements on beneficial ownership. Furthermore, departmentalizing the recommendations into 9 salient areas allows for a structured approach to targeting said gaps, to aid in the full realization of project success.
Areas of recommendation thus utilized:
• Consideration of the links between Beneficial Ownership and National Reform priorities
• Consideration of the Institutional Framework for Beneficial Ownership disclosure • Determine a definition of Beneficial Ownership in the PNG context • Reporting obligation for Politically Exposed Persons (PEPs) • Consideration of level of detail to be disclosed • Data collection procedures • Assuring the accuracy of the data • Data timeliness • Data accessibility
Recommendations to achieve full compliance with EITI standard’s requirements while mitigating the effects of barriers and gaps can be found in section 5.6 of this report.
In order to implement the recommendations and related actions, it is considered essential to:
1. Construct/ create a roadmap keeping the timelines and schedules in check and relevant to industry/economic/political activities i.e. Government/provincial Elections.
2. Associate a costing plan to the individual activities and tasks corresponding to the recommendations provided, thus ensuring feasibility of the project.
3. Engage with an outsourced professional to act as your Roadmap Implementation Officer/Manager (RIO/RIM), to fully support interested parties in the efficient implementation of a plan into a viable project.
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2. Introduction
2.1 Overview of the engagement KPMG was appointed in September 2016 by the PNGEITI National Secretariat and the PNGEITI MSG to undertake a Scoping Study on Beneficial Ownership (BO) and Development of a Roadmap, referred to in TOR as the “Beneficial Ownership Project”. The selection was made through a very competitive selection process.
The beneficial ownership project would assess the feasibility of requiring beneficial ownership disclosure through the EITI reporting process, including reviewing existing disclosure practices and identifying suitable approaches for disclosure. Such an expectation inevitably requires KPMG to undertake research to determine the feasibility of requiring beneficial ownership disclosure in PNG.
2.2 Objectives The objective of the scoping study is to produce findings surrounding;
• Discussion of national priorities linked to BO disclosure;
• Review of legal and institutional framework related to beneficial ownership;
• Assessment of gaps and barriers that will affect full compliance with the EITI Standard’s requirements on beneficial ownership;
• Recommendations on how to address such gaps with clear timelines; and
• Examination of PNG’s context relating to landowners’ participation in extractive operations and recommendations on how to incorporate this in beneficial ownership disclosures.
2.3 Purpose of Report The purpose of the scoping study report is to provide findings per the agreed steps by KPMG and the PNGEITI National Secretariat. This entailed desktop research as well as feedback gathered during stakeholder consultations. As anticipated the information would primarily outline the existing beneficial ownership practices in PNG. Drawing on research, consultation feedback and KPMG’s local knowledge and experience in identifying public sources of information, the scoping study report presents a number of key recommendations in relation to existing beneficial ownership disclosure practices in PNG and the anticipated outcome required to fully disclose beneficial ownership information of companies that “bid for, operate or invest in extractive assets” in PNG.
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The scoping study report represents the second deliverable of the Scoping Study on Beneficial Ownership and Development of a Roadmap. It covers the period 22 November 2016 to 1 February 2017 and covers the following;
• Introduction
• Background
• Scoping Study – Approach
• Scoping Study – Findings and Recommendations
2.4 Report Structure The report comes in two parts. The first part provides a summary on the project, the agreed methodology, and the approach applied to complete the scoping study. The second part provides findings and information gathered during research and consultations while providing recommendations in an effort to mitigate the effects of key gaps, barriers and challenges. This information will ultimately provide inputs for the development of the final roadmap for beneficial ownership disclosure in the extractive industries of PNG.
3. Background The Papua New Guinea Extractive Industries Transparency Initiative (PNGEITI) National Secretariat invited Expressions of Interest (EoI) from external consultants to undertake a scoping study on beneficial ownership and development of a roadmap in August 2016. KPMG submitted its EoI on the 2nd September 2016 and was later informed of its successful tender on the 26th September 2016. The selection was made by PNGEITI National Secretariat and the PNGEITI Multi-stakeholder Group (MSG) through a very competitive selection process.
3.1 What is EITI?1 The EITI is an acronym for Extractive Industries Transparency Initiative (EITI). EITI is a global Standard that promotes transparency and accountability in the oil, gas and mining sectors. It seeks to strengthen government and company systems, inform public debates and enhance trust. In each implementing country it is supported by a coalition of governments, companies and civil society organisations working together.
EITI implementation has two core components:
• Transparency: oil, gas and mining companies disclose information about their operations, including payments to the government, and the government discloses its receipts and other relevant information on the industry. The figures are reconciled by an Independent Administrator (IA), and published annually alongside
1 Source: http://www.pngeiti.org.pg/about-us/what-is-eiti/
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other information about the extractive industries in accordance with the EITI Standard.
• Accountability: a multi-stakeholder group (MSG) with representatives from government, companies and civil society is responsible for overseeing the process and communicate the findings of the EITI reporting, and promote the integration of EITI into broader transparency efforts in that country.
The EITI Standard encourages MSG’s to explore innovative approaches to extending EITI implementation to increase the comprehensiveness of EITI reporting and public understanding of revenues and encourage high standards of transparency and accountability in public life, government operations and in business .
The EITI Board agreed in February 2013 that following a period of testing and learning, the EITI should, in the future, require disclosure of beneficial ownership in oil, gas and mining companies operating in implementing countries.
With the adoption of the 2016 EITI Standard (provision 2.5), the EITI Board has agreed that by 1 January 2020, all implementing countries must ensure that corporate entities disclose the identity of their beneficial owners (BO). A beneficial owner in respect of a company is defined as the natural person (s) who directly or indirectly ultimately owns or controls the corporate entity. Additionally, any politically exposed persons (PEPs) who are beneficial owners should also be identified. It was recommended that the beneficial ownership information is made available through public registers. In order to ensure that the necessary preparatory steps and reforms are undertaken, implementing countries are also required to agree and publish roadmaps for their beneficial ownership disclosures by 1st January 2017.
As an EITI implementing country, PNG will be required to produce a Beneficial Ownership (BO) Roadmap by 1st January 2017.
3.2 PNGEITI2 The PNG Extractive Industries Transparency Initiative (PNGEITI) was approved by the Government of PNG (GoPNG) through NEC Decision No. 90/2013, promoting revenue transparency and accountability in the country’s mining and petroleum sectors. GoPNG fully supports the EITI global standard and, in collaboration with CSOs and industry established the PNGEITI multi-stakeholder group on the 1st of November 2013.
Discussion on EITI started in 2006 as a result of PNG Gas Project. The Government was asked to implement EITI as part of the Asian Development Bank (ADB) condition to finance the project (now defunct). A scoping study was therefore conducted to determine whether PNG should participate in the EITI.
The scoping study identified that PNG had already implemented some of the initiatives established under the EITI at the National Government level, although PNG was not an
2 Source: http://www.pngeiti.org.pg/about-us/what-is-pngeiti/
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EITI member country. However, the study also highlighted that implementing EITI would greatly increase the transparency and accountability of extractive industries revenues to the National Government and redistribution to the provincial and local level governments.
In April 2011, based on the findings of the scoping study, the NEC endorsed (NEC Decision No. 47/2011) the establishment of a State Working Group (SWG) to assess the advantages and disadvantages of signing up to EITI. In particular, the SWG was tasked with further investigating the possibility of implementing the EITI in PNG and report back to NEC with a detailed work plan for endorsement.
As a result, the SWG engaged with major extractive industry participants and civil society organizations in PNG to gauge their views and support. A workshop was therefore organized and the stakeholders expressed their views and support for PNG to participate in the EITI. A team from Timor Leste also shared their experience of implementing EITI during the workshop.
The key recommendation by the SWG to Cabinet after the consultations with relevant stakeholders on the possibility of EITI implementation in PNG, was that it endorse the implementation of EITI and approve the establishment of a PNG Multi Stakeholder Group (PNGMSG) to develop a detailed work plan for EITI implementation in PNG that incorporated views of every interested stakeholders in the extractive industry.
An informal MSG was therefore formed which comprises of the SWG, major industry players such as Esso Highlands Limited, Oil Search Limited, Ok Tedi Mining Limited, Newcrest Mining Limited and Barrick/PJV and civil society organizations including Transparency International PNG, PNG Institute of National Affairs and Consultative Implementing and Monitoring Council.
On March 2013, the NEC (NEC Decision No. 90/2013) approved that PNG will sign up to the EITI and endorsed the Treasurer as Minister responsible to lead the implementation of EITI in PNG and endorsed the Treasurer to make the public announcement on behalf of the Government that PNG will sign up to the EITI.
The Treasurer made the announcement which was published in the print media and aired on television, and which was further reiterated by the Treasurer at the 6th EITI Global Conference held in Sydney on May 2013. The Treasurer announced PNG Government’s commitment to implement EITI in front of 1400 participants including international media and committed that PNG should submit its application for candidacy by end of 2013. The NEC Decision No. 90/2013 substantially approved the five sign up steps to be fulfilled before applying for candidacy.
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4. Scoping Study Approach There was an initially agreed methodology between the PNGEITI National Secretariat and KPMG pursuant to a kick-off meeting undertaken on 10th October 2016. Whilst extensive discussion and consultation occurred between both parties, it was recognised that the methodology was subject to change at short notice in order to respond to the needs of the assignment. KPMG adopted the practice of basing its core project team in the early stages of the assignment to optimise synergies in the development and agreement of the methodology.
The approach adopted by KPMG was derived from the purpose of the scoping study. This was to undertake the following:
• To conduct research on beneficial owners of entities that bid for, operate or invest in extractive assets in PNG, using identified sources of public available information
• To conduct research on the extent of legislative and regulatory frameworks in PNG and internationally which govern the disclosure of beneficial ownership information
• To review and understand existing disclosure practices in PNG and identify suitable approaches for disclosure
• To obtain feedback from consultations about beneficial ownership in extractive assets with regards to; national priorities, legal and institutional frameworks, any gaps and barriers that will affect full compliance with EITI standard requirements, recommendations on addressing these gaps and barriers within timelines, and the participation of landowners
4.1 Methodology With reference to the agreed detailed task list under Phase 2 - Scoping Study, a number of activities were planned to occur in an orderly manner or the commencement of another task may be dependent on the output of one or two tasks. Refer to Appendix A for the detailed task list.
However some scheduled activities and tasks were undertaken simultaneously in the early stages of the phase by KPMG’s core project team, even though clear roles and responsibilities were being outlined in the agreed methodology under ‘Detail’ and ‘Parties’. A notable factor which had an impact on the agreed methodology that resulted in the change of approach taken by KPMG was timing and availability of information.
KPMG was given a set timeframe to submit a number of deliverables per the TOR, however taking into consideration the time of year in which the assignment was undertaken and the length of time it would take to secure consultations; timing was likely to have an impact on the quantity and quality of information to be sought.
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The availability of information also had some effect on the commencement and continuation of tasks. The KPMG core project team worked with whatever information they could obtain from their own sources of information and networks as well as what was provided to them by PNGEITI National Secretariat and the PNGEITI MSG.
4.2 Entities A list of PNGEITI Reporting Entities was provided in pages 21 to 25 of the TOR3, this tabled list included Large Scale Mining Project Companies, Small Scale Mining Project Companies, Oil Project Companies and Gas Project Companies. It was also noted in the TOR that the list was not an exhaustive list as the scope of the companies for BO disclosure would potentially be bigger to include companies that bid for, operate and invest in extractive assets in PNG. Refer to Appendix B for the list provided in TOR.
From the TOR, KPMG compiled an initial list of 46 reporting entities plus seven relevant PNG government agencies and submitted to the PNGEITI National Secretariat on 25th October 2016, for feedback and inclusion of remaining companies not listed in the TOR. A list of 369 license types was provided to KPMG on 1st November 2016 by PNGEITI National Secretariat. The extensive list contained various mining, and oil and gas licenses held by entities investing in extractive assets in PNG. Refer to Appendix C for the list. KPMG then distilled the stakeholder list from 369 down to 203 entities and submitted to the PNGEITI National Secretariat for their input. Refer to Appendix D for the list of 203 stakeholders. The final list of stakeholders agreed by KPMG and the PNGEITI National Secretariat was only 52 stakeholders post the short listing and filtering process. Refer to Appendix E for the final Stakeholder list.
4.3 Participants list In order to agree upon a final list of potential participants, a process had to be developed to justify the logic/thinking behind the short listing process. The following initial considerations were made;
i. Equal representation of a cross-section of the industry (i.e. Mining and Oil & Gas)
ii. Combination of public and private entities bidding for, investing in and operating in the extractive assets of PNG
iii. Representation of key organizations playing an important role in mining and oil & gas industries; these include government agencies, peak bodies and private non-profit research institutes/think tanks
Refer to Table 1 for the steps taken in short listing companies for the scoping study exercise.
3 Terms of Reference (TOR) Scoping Study on Beneficial Ownership and Development of a Roadmap – dated August 2016
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Table 1 – Process undertaken to shortlist a final list of 52 stakeholders to invite
Level Rationale to select Outcome
1 – List of 369 licences issued to companies & those applied for in PNG
• Sort licences by ‘Company Name’ to identify ‘Contact entity’
o 203 contact entities identified
2 – List of 203 contact entities
• Filter by subjective assessment of materiality; companies with the most number of licenses held and applied for in PNG
• Suggest 40 entities plus key government agencies
o 42 corporate entities and 10 key government agencies selected (i.e. list of 52)
(Note PNGEITI selected 22 mining entities and 20 oil & gas entities)
3 – List of 52 stakeholders
• Select contact entities for face to face consultations
• Select another lot contact entities for questionnaire to be provided to them for written response
• Select key government agencies for face to face consultation
o 10 key government agencies - selected for face consultations
o 10 mining entities - selected for face consultations
o 10 oil & gas entities – selected for face consultations
o 12 mining entities – selected for questionnaire responses
o 10 oil & gas entities – selected for questionnaire responses
4.4 Consultation Pack A consultation pack was developed by KPMG in conjunction with our subject matter expert from the KPMG firm in France. The consultation pack included the following;
• Background to the BO EITI International initiative including its goals and objectives;
• A draft work plan that outlined the key tasks and the timeframe the PNGEITI National Secretariat is working against in order to meet EITI International global deadlines.
• A preliminary list of questions and discussion points that would assist in preparing and guiding individual consultations; and
• Contact details of key project personnel (PNGEITI National Secretariat and KPMG).
Refer to Appendix F for the ‘PNGEITI BO Consultation Pack’ dated December 2016.
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4.5 Stakeholder Consultations As part of the information gathering process for the scoping study, stakeholder consultations were planned to be undertaken with the 52 entities shortlisted and agreed by KPMG and the PNGEITI National Secretariat. Two separate invitations were sent out, firstly to those selected for face to face consultations and the second to those selected to provide written questionnaire responses. As part of the two emails, the following attachments were sent to support the invites:
i. BO support letter from PNGEITI National Secretariat – signed off by the Minister for Treasury & Chairman of the PNGEITI MSG
ii. PNGEITI BO Consultation Pack.
4.5.1 Face to face consultations
A list of 10 state agencies, 10 mining entities and 10 oil and gas entities were selected for face to face consultations. An invitation to participate in face to face stakeholder consultations was sent by KPMG via email on 24th November 2016. The face to face consultations were planned to be conducted within an hour and aimed to be interactive hence this provided an opportunity for entities and agencies to openly express their views of the extractive industry in PNG as well as share their experiences of BO.
Of the 30 stakeholders we reached out to and followed up on invites:
i. 5/10 state agencies participated
ii. 2/10 mining entities participated
iii. 5/10 oil & gas entities participated.
4.5.2 Written questionnaire responses
For written responses, a list of 10 oil & gas entities and 12 mining entities were selected and invited to provide written questionnaire responses. The rationale for taking this approach was because from KPMG’s experience, some entities may not have time to undertake face to face consultations therefore this provides an opportunity for them to participate by submitting written response to questions. An invitation to provide written responses to the questionnaire was sent by KPMG via email on 7th December 2016 with a proposed deadline set as 14th December 2016 for responses to be submitted by entities to KPMG.
Of the 22 stakeholders that were selected:
i. Only 4/10 oil & gas entities were sent email invites as KPMG and PNGEITI could not find contact details for the remaining 6 oil & gas entities.
- Further attempts were made to reach out to those 6 companies with 4 consultation packs being hand delivered to the 4 company’s respective addresses in Port Moresby (address taken from their IPA extracts).
ii. Of the 4/10 oil & gas entities invited to participate, only 1 of 4 entities provided a response
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iii. Of the 10 mining entities invited to participate, only 1/10 provided a response.
Refer to Appendix G for the consultations invite status chart as at 1st February 2017.
4.6 Identification of Public Sources of Information to determine Beneficial Owners Through desktop research, public sources of information were identified from web searches to assist in determining the BO of the reporting companies. The identified sources include;
• IPA website - register of companies
• Listing of Public Stock Exchanges – public listed companies
• Company Annual Reports
• MRA register
• DPE register
Other public sources were also identified from which company shareholding information could be obtained. These were;
• ARBN website
• Coy website
• ASIC website (i.e. company extracts supplied on pay per use basis)
When the list of 52 stakeholders was agreed between KPMG and the PNGEITI National Secretariat to participate in the scoping study on BO, 42 from 52 entities were used as ‘the sample list’ by KPMG to conduct desktop research in order to identify beneficial owners. The remaining 10 were made up of government agencies, a peak body and one private non-profit research institute/think tank, who would be invited to participate in face to face consultations, for their feedback on various aspects relating to beneficial ownership disclosure.
4.6.1 IPA registry – registrar of companies in PNG Company searches were undertaken on 42 corporate entities which identified the first or base layer of shareholding information. During the desktop research, the team identified two sets of information useful in terms of further searching for BO information. The first was shareholding bundles and who the shareholders were and the second was the company’s place of incorporation. A company’s share bundle reveals the number of shares a company has on issue and who owns these shares, whether is a company, an individual or even both.
Refer to Table 2 for a summary of the base layer shareholding detail for each of the 42 entities.
Table 2 – Base layer summary of shareholders and beneficial owners for 42 entities
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No. Entities Sector Type of entity
Place of incorporation
(per IPA extract)
No. of shareholders
Company Individual
1 Ampolex (Papua New Guinea) Limited
Oil & Gas
Corporate entity
PNG 2 2
2 Aus PNG Mining Limited
Mining Corporate entity
PNG 4 3 1
3 Barracuda Limited Oil & Gas
Corporate entity
PNG 1 1
4 Barrick (Niugini) Limited
Mining Corporate entity
PNG 2 2
5 Copper Quest PNG Limited
Mining Corporate entity
PNG 1 1
6 Diamond Gas Niugini B.V
Oil & Gas
Corporate entity
Netherlands 1 1
7 Eaglewood Energy Oil & Gas
Corporate entity
Australia Unable to get info. from ASIC
8 ExxonMobil PNG Limited
Oil & Gas
Corporate entity
PNG 2 2
9 Frontier Copper (PNG) Limited
Mining Corporate entity
PNG 1 1
10 Harmony Gold (PNG) Exploration Limited
Mining Corporate entity
PNG 1 1
11 Highlands Pacific Limited
Mining Corporate entity
PNG 20 16 4
12 Horizon Oil International Limited
Oil & Gas
Corporate entity
PNG 1 1
13 Kengaku Petroleum Limited
Oil & Gas
Corporate entity
PNG 1 1
14 Kina Petroleum Limited
Oil & Gas
Corporate entity
PNG 29 16 13
15 Kumul Minerals Holdings
Mining SOE PNG 1 1
16 Kumul Petroleum Holdings Limited
Oil & Gas
Corporate entity
PNG 1 1
17 Mayur Exploration PNG Limited
Mining Corporate entity
PNG 1 1
18 Mayur Iron PNG Limited
Mining Corporate entity
PNG 1 1
19 MCC Ramu NiCo Limited
Mining Corporate entity
PNG 1 1
20 Merlin Petroleum Company
Oil & Gas
Corporate entity
United States No details on IPA extract
21 Mineral Resources Development Company Limited
Mining Landowner Company
PNG 2 2
22 Morobe Exploration Limited
Mining Corporate entity
PNG 1 1
23 Morobe Minerals & Metals Company Limited
Mining Corporate entity
PNG 3 1 2
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No. Entities Sector Type of entity
Place of incorporation
(per IPA extract)
No. of shareholders
Company Individual
24 Nautilus Minerals Niugini Limited
Mining Corporate entity
PNG 1 1
25 Newcrest Mining Limited
Mining Corporate entity
Australia 20 19 1
26 Niugini Gold Mining Limited
Mining Corporate entity
PNG 1 1
27 Niuminco (ND) Limited Mining Corporate entity
PNG 1 1
28 Nord Australex Nominees (PNG) Ltd
Mining Corporate entity
PNG 1 1
29 Oil Search Limited Oil & Gas
Corporate entity
PNG 10 10
30 Ok Tedi Mining Limited
Mining Corporate entity
PNG 2 1 1
31 Osaka Gas Niugini (Pty) Limited
Oil & Gas
Corporate entity
Australia 1 1
32 Pacific Niugini Minerals (PNG) Limited
Mining Corporate entity
PNG 1 1
33 Peak Oil (PNG) Pty Ltd Oil & Gas
Corporate entity
Australia 1 1
34 Ramu Nickel Limited Mining Corporate entity
PNG 1 1
35 Repsol SA Oil & Gas
Corporate entity
No records with IPA
No extract found with IPA
36 Rio Tinto Exploration (PNG) Limited
Mining Corporate entity
PNG 1 1
37 Sabrage Limited (Stretton Energy Limited)
Oil & Gas
Corporate entity
PNG 1 1
38 Santos Hides Limited Oil & Gas
Corporate entity
PNG 1 1
39 Talisman Energy Niugini Limited
Oil & Gas
Corporate entity
PNG 1 1
40 Total E&P PNG Oil & Gas
Corporate entity
PNG 1 1
41 Twhite Petroleum Pty Ltd
Oil & Gas
Corporate entity
Australia Unable to get info. from ASIC
42 Twinza Oil (PNG) Ltd Oil & Gas
Corporate entity
Australia 1 1
123 96 27
According to Table 2, the following findings provide an indication of the extent to which BO information could be sourced using IPA extracts and other relevant websites.
• 9/42 entities were incorporated overseas and provided little or no information on beneficial owners. Either they had an IPA extract but no shareholder information was provided on their extract or no records of the company could be found on the IPA website.
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• 4/42 entities had individuals as the ultimate shareholder of the company. One of these four companies had the Prime Minister of PNG as the trust shareholder.
• 28/42 entities had companies as the shareholders of the entity
• 10/42 entities had both companies and individuals as shareholders of the entity
• 4/42 entities had 10 or more shareholders and listed only their top shareholders of the entity.
4.6.2 Public listed companies Identifying early on whether a company is public listed or not is important as this should determine if the information sought can be easily accessed from public sources or will need to be directly sourced from the company. Most public listed companies publish their shareholding and financial information for public accessibility while the private companies do not normally disclose shareholding or financial information to the public. The following public websites were accessed to determine if a company was a private or public listed company, depending on the place of incorporation as detailed on IPA extracts.
• http://topforeignstocks.com/indices/the-listed-companies-of-the-papua-new-guinea-port-moresby-stock-exchange-pomsox/
- For companies registered in PNG, the Port Moresby Stock Exchange website was used.
• http://www.asx.com.au/asx/research/listedCompanies.do?coName=T
- For companies registered in Australia, the Australian Stock exchange website was used.
• http://www.forbes.com/global2000/list/#tab:overall
- For companies registered in countries all over the world
4.6.3 Company Annual Reports Annual reports for the public listed companies were also sourced to cross check shareholder information provided in the IPA extracts. Given company annual reports are published every year, it proved to also be a reliable source in tracing beneficial owners of a company. However it should be noted that the shareholder information in annual reports is only the company’s top shareholders and this depends on what the percentage threshold the company agrees to for reporting purposes. This could disadvantage the exercise of identifying beneficial owners as the small shareholders of the company are not always reported or public disclosed due to their size of ownership or share.
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4.6.4 MRA register – Mining Tenements The Mineral Resource Authority (MRA) through the ‘Mineral Resource Authority Act 2005’ has been mandated to issue mining tenements to companies bidding for or investing in Mining Activities in PNG. The mining tenements include;
• Exploration Licenses
• Mining Lease
• Special Mining Lease
• Alluvial Mining Lease
• Lease for Mining Purpose
• Mining Easement
Through face to face consultation with MRA, it was confirmed that MRA had in place a public register that keeps information on companies they have dealt with and that this register was open for the public to view. When companies apply or bid for mining assets in PNG, they are required to provide evidence of their financial and technical capabilities to operate in PNG. Thus, most companies provide supporting documentation such as a list of their shareholders or an IPA extract.
With regards to having beneficial ownership information of companies, MRA does not specifically require BO information from companies, however there have been instances where MRA would request companies to provide their BO information for investigation purposes when a company MRA deals with experiences liquidation.
MRA also has a strong involvement with landowners hence they are the middle player between mining companies and landowners when it comes to royalty payments. Therefore they also had records of beneficial owners of the landowner companies they deal with however the beneficial owners were not individuals but usually clans.
4.6.5 DPE register – Oil and Gas Tenements Over the course of our face to face consultations with entities and state agencies, there was similar feedback with regards to the Department of Petroleum and Energy (DPE) as the central source of information and agency that kept Oil & Gas company information. DPE through the ‘Oil & Gas Act 1998’ is mandated to issue Oil & Gas tenements to companies that bid for, invest in or operate in Oil & Gas assets in PNG.
The exploration and development of oil, petroleum and gas are regulated under the Oil and Gas Act 1998. Like the Mining Act 1992, it vests ownership of petroleum, natural gas and helium at or below the surface of land in the state. The Oil and Gas Act 1998 sets out a comprehensive regime that deals with the types of petroleum licences that may be granted by the state, including:
• Petroleum prospecting licences;
• Petroleum retention licences;
• Petroleum development licences;
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• Pipeline licences,
• Petroleum processing facilities licences and the terms and conditions of their issue;
• Registering interests and dealings in tenements;
• Compensating landowners; and
• Paying fees and royalties
General feedback and comments gathered through these consultations with other entities and state agencies highlighted that DPE’s biggest challenge was their current data storage practises and filing processes in relation to company information. Unfortunately, KPMG was not given an opportunity by DPE to undertake a consultation with them, despite many attempts to follow up.
4.6.6 Other public sources of information
In cases where we could not find a company’s shareholding information, the team reverted to the company’s place of incorporation for an indication as to which country the company was incorporated so an online search could be done specifically in that country for shareholding information. One example is for those companies incorporated in Australia but do not have any shareholder information on the IPA company extract; a search was done using the Australian Government – Australian Business Register link http://www.abr.business.gov.au/ and the New Zealand Companies Search Companies website link http://www.coys.co.nz/ to find their shareholdings information. An alternative source was also used http://asic.gov.au/ for companies registered in Australia. The Australian Securities & Investment Commission (ASIC) is somewhat an equivalent to PNG’s IPA however company extracts could be supplied on pay per use basis.
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5. Scoping Study The Scoping Study entailed researching information and structured discussions with a cross selection of extractive industry participants through a series of face to face consultations and written responses, where key concepts and themes relevant to beneficial ownership were discussed and feedback obtained from those companies and state agencies that agreed to participate. These sessions were organised and facilitated by KPMG and the PNGEITI National Secretariat was given the option for a representative to attend.
The consultations provided a platform for stakeholder feedback to be considered and incorporated into the development of the Roadmap. Consideration of stakeholder feedback will assist the PNGEITI National Secretariat and PNGEITI MSG to implement a realistic roadmap for BO disclosure. It will also provide an indication on whether the public and private entities are able and willing to disclose their beneficial ownership information.
5.1 Discussion of national priorities linked to BO disclosure From all feedback and written responses gathered during stakeholder consultations, the consistent feedback was that Beneficial Ownership (BO) is not specifically contained in PNG's national priorities. This would be reasonable considering that the concept of beneficial ownership would not have been specifically envisaged at the time of the development of PNG’s development strategies. Furthermore, suggestions were provided by the Eco Forestry Forum regarding widening the scope of the proposed EITI legislation to include and cover all of the extractive sectors including forestry, fisheries and related sectors. However, this report shall stay consistent with the EITI standards and official definition which pertains to the Oil, Gas and Mining Sector only. It was noted through discussion and research that there exist development goals in the resource extractive industry that indirectly relate to BO (stakeholders). The following table (Table 3) lists those development strategies that link to PNG’s development goals.
Table 3 – List of development strategies linking to PNG’s development goals
Document /strategy Document/goals
1/2 - The Constitution of the Independent State of Papua New Guinea
Constitution & Directive Principles
1. Integral Human Development
2. Equality and Participation
3. National Sovereignty and Self Reliance
4. National Resources & Environment
5. Papua New Guinea Ways
2/2 - National Strategy for Responsible Sustainable Development for Papua New Guinea – StaRS - 2nd Edition
Responsible Sustainable Development (RSD) Principles
• Development Paradigm
• STaRS
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Document /strategy Document/goals
The STaRS clarifies the guiding principles in terms of the development paradigm (the way) to achieve Vision 2050
Papua New Guinea – Medium Term Development Plan 2 (MTDP2)
2016 – 2017
MTDP2 import goals
• Embed the STaRS principles into Sector and Provincial Plans and ensure that they inform all other development planning; and
• Enhance our linkages with our partners to improve implementation, monitoring and reporting
Papua New Guinea Vision 2015 Vision 2050 Target
• Healthy, Empowered, Educated, Happy Population
• Top 50 in the United Nations HDI Ranking
Having completed the stakeholder consultations, most entities who participated shared the view that were wasn’t a clear or specific ‘National Priority’ relating to the disclosure of BO.
5.1.1. Key findings on discussion on national priorities linked to BO disclosure
1. Beneficial Ownership (BO) is not specifically contained in PNG's national priorities; however, there are development goals in the resource extractive industry that indirectly relate to BO (stakeholders). These development goals are integrated through the development strategies;
2. Ownership of legal entities is enshrined in law through the Companies Act 2014 as regulated and governed by the Investment Promotion Authority (IPA); and
3. Ownership of mining and petroleum licenses is enshrined in law through the Mining Act 1992 and Oil and Gas Act 1998 as regulated by Mineral Resources Authority (MRA) and Department of Petroleum & Energy (DPE) respectively.
5.2 Understanding compliance with EITI Standards in PNG
Under EITI Standard Provisions 2.5 on Beneficial Ownership, it is recommended that implementing countries maintain a publicly available register of the beneficial owners of the corporate entity(ies) that bid for, operate or invest in extractive assets, including the identity(ies) of their beneficial owner(s), the level of ownership and details about how ownership or control is exerted. Where possible, beneficial ownership information should be incorporated in existing filings by companies to corporate regulators, stock exchanges or agencies regulating extractive industry licensing. Where this information is already publicly available, the EITI Report should include guidance on how to access this information.
EITI defines a beneficial owner in respect of a company, as the natural person(s) who directly or indirectly ultimately owns or controls the corporate entity.
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It is expected that the multi-stakeholder group of each country should agree an appropriate definition of the term beneficial owner. The definition should be aligned with the EITI definition and take international norms and relevant national laws into account, and should include ownership threshold(s). The definition should also specify reporting obligations for politically exposed persons.
Public listed companies, including wholly-owned subsidiaries, are required to disclose the name of the stock exchange and include a link to the stock exchange filings where they are listed.
In the case of joint ventures, each entity within the venture should disclose its beneficial owner(s), unless it is public listed or is a wholly-owned subsidiary of a public listed company. Each entity is responsible for the accuracy of the information provided.
Information about the identity of the beneficial owner should include the name of the beneficial owner, the nationality, and the country of residence, as well as identifying any politically exposed persons. It is also recommended that the national identity number, date of birth, residential or service address, and means of contact are disclosed.
It is required that:
• The EITI Report documents the government’s policy and MSG’s discussion on disclosure of beneficial ownership. This should include details of the relevant legal provisions, actual disclosure practices and any reforms that are planned or underway related to beneficial ownership disclosure.
• By 1 January 2017, the multi-stakeholder group publishes a roadmap for disclosing beneficial ownership information in accordance with clauses (c)-(f) below. The MSG will determine all milestones and deadlines in the roadmap, and the MSG will evaluate implementation of the roadmap as part of the MSG’s annual activity report.
As of 1 January 2020, it is required that implementing countries request, and companies disclose, beneficial ownership information for inclusion in the EITI report. This applies to corporate entity(ies) that bid for, operate or invest in extractive assets and should include the identity(ies) of their beneficial owner(s), the level of ownership and details about how ownership or control is exerted. Any gaps or weaknesses in reporting on beneficial ownership information must be disclosed in the EITI Report, including naming any entities that failed to submit all or parts of the beneficial ownership information. Where a country is facing constitutional or significant practical barriers to the implementation of this requirement by 1 January 2020, the country may seek adapted implementation.
The multi-stakeholder group should agree an approach for participating companies assuring the accuracy of the beneficial ownership information they provide. This could include requiring companies to attest the beneficial ownership declaration form
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through sign off by a member of the senior management team or senior legal counsel, or submit supporting documentation.
The EITI Report should also disclose the legal owners and share of ownership of such companies.
5.2.1.1 Key findings in terms of PNG’s compliance with the EITI Standard - Provision 2.5 on Beneficial Ownership
1. A definition of beneficial ownership should refer to a natural person and should include ownership threshold(s)
2. PNG does not currently possess a definition of either a beneficial owner or a politically exposed person
5.3 Review of legal and institutional framework related to BO Many countries lack laws and institutional frameworks that encourage integrity and openness, including basic transparency guidelines. The PNGEITI National Secretariat currently exists on the back of a directive from NEC (i.e. there is no legal permanency and the EITI initiative at this particular point of time is a voluntary initiative). It does not operate by law and/or an international convention.
The EITI framework requirements for a transparent legal framework include a requirement for:
• legal framework and fiscal regime;
• licence allocations;
• register of licenses;
• contracts;
• beneficial ownership; and
• State-participation in the extractive sector.
It is our observation that Papua New Guinea (PNG) already substantially complies with these legal requirements. Below find an analysis of the existing beneficial ownership practices with the other EITI legal requirements.
5.3.1 Background to the Papua New Guinea Legal System Papua New Guinea, whilst being a developing country, has a well-developed legal system. The background and underpinnings of this system can be found in the historical underpinnings of modern Papua New Guinea. The nation state which is now known as the Independent State of Papua New Guinea comprises the two former League of Nations mandated trust territories comprised in the British Protectorate of Papua and the Prussian Imperial Possession of New Guinea. After the declaration of the British Protectorate in 1884, the State of Queensland initially took legislative responsibility for Papua and established much of Papua’s early laws.
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On the German side, a detailed system of civil government had been established which supported the German agricultural and trading activities. Central in this was the “Gundbuch” into which the land titles were recorded and the system of administrative and magisterial delegations which were in operation. Following the treaty of Versailles in 1914 the German possessions were expropriated as compensation and Australia assumed responsibility for New Guinea under the League of Nations mandate.
Australia administered both Papua and New Guinea initially under separate and distinct legal systems which were as much as possible unified by the early 1970s. By that time, the content of the laws in operation and the operation of the legal system in Papua and New Guinea was very similar to that which might have been found at that time in an Australian State. The territories possessed a Westminster style parliament and had separation of powers between the Parliament, the Public Service and the Judiciary. The Parliament passed laws and the common law and rules of equity of England applied.
In 1975, Papua and New Guinea were finally unified as an independent nation with a detailed written Constitution, the re-adoption of the legislation passed by the pre-independence Parliament and the enshrinement of the common law of rules of equity in England as at 1975 as the basis of the underlying law.
Significantly, the Constitution sets out many basic rights and enshrines many institutions to a degree which other countries do not. It might be observed at this time that the authors of the Constitution must have benefited from their observations of earlier attempts at national independence elsewhere. A large body of legislation has been added in the decades following 1975 and the Courts have followed with considerable consistency the common law and rules of equity from England.
It is therefore important to understand that the requirements of the EITI framework must be assimilated into this detailed and well developed legal system.
5.3.2 Legal Framework and Fiscal Regime for Extractive Industries The extractive industries in Papua New Guinea are governed primarily by three Acts of Parliament. There are a number of executive regulations and supplementary Acts of Parliament which deal with issues such as operational safety and reporting. These three items of legislation are the:
• Mining Act 1992;
• Oil & Gas Act 1998; and
• Unconventional Hydrocarbons Act 2015.
Each piece of legislation establishes that all minerals and petroleum in PNG is the property of the State as set out below:
Section 5 of the Mining Act:
5. Minerals the property of the State.
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(1) All minerals existing on, in or below the surface of any land in Papua New Guinea, including any minerals contained in any water lying on any land in Papua New Guinea, are the property of the State.
Section 6 of the Oil & Gas Act:
6. Petroleum the property of the State.
(1) Subject to this Act, but notwithstanding anything contained in any other law or in any grant, instrument of title or other document, all petroleum and helium at or below the surface of any land is, and shall be deemed at all times to have been, the property of the State.
Section 6 of the Unconventional Hydrocarbons Act:
6. Unconventional hydrocarbons the property of the State.
(1) Subject to this Act, but notwithstanding anything contained in any other law or in any grant, instrument of title or other document, all unconventional hydrocarbons at or below the surface of any land are, and shall be deemed at all times to have been, the property of the State.
The Constitution has established at section 87H the National Economic and Fiscal Commission, which has the obligation of assessing and monitoring the economic and fiscal policies of the National, Provincial and Local Level Government.
Pursuant to sections 57 of the Oil & Gas Act and section 53 of the Unconventional Hydrocarbons Act the Minister in granting the development licences to a licensee among other proposals will consider where it is available a cost-benefit analysis carried out and made available to the National Executive Council by the National Economic and Fiscal Commission (NEFC). The NEFC must consider whether that the licensee’s proposal for development:
• will achieve maximum efficient recovery and prevention of resource waste by applying good industry practice;
• does not interfere with the rights of licensees of adjacent licences covering a common unconventional hydrocarbons resource;
• complies with the State's policy on non-discriminatory access for other persons to any strategic pipelines or strategic petroleum processing facilities involved in the proposals;
• provides adequately for the protection of the environment and the welfare of the people of the area;
• demonstrates that the applicant has adequately identified the persons who are the customary land owners in the development areas;
• has duly considered a co-ordinated project development with any adjacent petroleum or unconventional hydrocarbons discoveries which studies and investigations conducted pursuant to a direction given under Section 60 reveal to be in the interest of the State;
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• promotes viable domestic utilisation of unconventional hydrocarbons, unconventional hydrocarbons products, petroleum or petroleum products to the extent reasonably possible; and
• will otherwise be in the best interests of the Independent State of Papua New Guinea.
There is no provision in the legislation for the National Economic and Fiscal Commission considerations to be applied in the case of mining tenements, probably because mining tenements are much more site specific compared for hydrocarbon tenements which impact the broad range of communities which exist above the petroleum and hydrocarbon reservoirs.
5.3.3 Licence Allocations The State being the owner of all minerals and petroleum issues licences to persons to explore and develop minerals and petroleum in Papua New Guinea. The issuance and renewal of the licences are governed by the 3 items of extractive legislation listed above.
5.3.3.1 Mining The following licences and their allocations are granted by the Minister (for Mining) on the advice of the Mining Advisory Council and administered by the Mineral Resources Authority (MRA).
Mining Licences under Part 5 of the Mining Act:
• Exploration License;
• Special Mining Leases;
• Mining Lease;
• Alluvial Mining Lease;
• Lease for Mining Purposes; and
• Mining Easements
5.3.3.2 Oil and Gas and Hydrocarbons The following licences listed below and their allocations are granted by the Minister (for Petroleum) acting on the advice of the Petroleum Advisory Board and administered by the Department of Petroleum and Energy (DPE).
Petroleum Licences under Part 3 of the Oil & Gas Act:
• Petroleum Prospecting Licence;
• Petroleum Retention Licence;
• Petroleum Development Licence;
• Pipeline Licence; and
• Petroleum Processing Fee Licence
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Unconventional Hydrocarbon Licences under the Unconventional Hydrocarbons Act:
• Unconventional Hydrocarbon Prospecting Licence;
• Unconventional Hydrocarbon Retention Licence;
• Unconventional Hydrocarbon Development Licence; and
• Pipeline Licence
Each licence is granted by reference to “blocks” which are determined by graticulation of the earth surface along the longitude and latitude measurements used in surveying.
It is clear from this legislation that there is a comprehensive law in place which determined the nature and extent of the rights being granted by the State and the purposes for which those licences are given in clearly elucidated. The area of land to which the licences apply is also clearly determinable by reference to geographical data.
The existing law therefore clearly defines the nature and extent of the legal property comprised in the extraction right.
5.3.4 Register of Licenses The Mining Act, the Oil & Gas Act and the Unconventional Hydrocarbons Act all require a register of licences to be kept. These registers are public documents maintained by the MRA and DPE which are the State agencies responsible for the management of the extraction of minerals and petroleum.
In relation to mining of minerals, section 113 of the Mining Act provides:
“113. Register of tenements.
(1) The Registrar shall establish and maintain a Register, to be known as the Register of Tenements.
(2) The Register shall contain details of all registered applications for tenements and all details of their subsequent grant or refusal and of such other particulars as may be prescribed in relation to those tenements.
(3) The Register shall be received by all courts as prima facie evidence of all matters required or authorized by this Act to be entered in the Register.”
As to conventional oil and gas, section 96 of the Oil & Gas Act provides:
“96. Register to be kept.
(1) The Minister shall cause to be kept a Register of applications, grants, extensions, transfers and dealings in licences.
(2) The Register shall contain such details as are prescribed or as the Minister directs.
(3) A copy of any entry in the Register may be obtained on payment of the prescribed fee.”
Finally, section 70 of the Unconventional Hydrocarbons Act provides:
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“70. Register to be kept.
(1) The Minister shall cause to be kept a Register of applications, grants, extensions, transfers and dealings in licences.
(2) The Register shall contain such details as are prescribed or as the Minister directs.
(3) A copy of any entry in the Register may be obtained on payment of the prescribed fee.”
These registers clearly record the direct legal ownership in a transparent and searchable way which is open to the public. In that regard, the existing law of Papua New Guinea already implements EITI Framework requirements for a register of ownership.
5.3.5 Contracts For contracts which represent something less than the legal ownership of the tenement which allows a third party to work the tenement such as a mining agreement, royalty agreement, tribute agreement or operating agreement , Papua New Guinea existing law also provides a regime of control.
The Mining Act, Oil & Gas Act and the Unconventional Hydrocarbons Act all recognise that:
“A legal or equitable interest in or affecting an existing or future licence is not capable of being created, assigned, affected or dealt with, whether directly or indirectly, except by an instrument.”
Furthermore, each item of legislation requires Ministerial Approval and registration of this interest on the Register of Tenements in relation to the licence which is being dealt with directly or indirectly.
As an example, the Mining Act provides at section 119(2):
“119 Instruments, other than transfers to be approved and registered
No—
(a) Legal or equitable interest is created, assigned or otherwise dealt with by an instrument, either directly or indirectly; and
(b) Tribute agreement is valid, unless and until the instrument has been—
(c) Approved by the Minister under Subsection (4) (a); and
(d) Registered under Subsection (5).”
A provision of identical effect to section 119(2) of the Mining Act 1992 appears in the Oil and Gas Act 1998 at section 100(2) and the Unconventional Hydrocarbons Act 2015 at section 74(2).
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Therefore it can be concluded that the legislation presently in force in Papua New Guinea already requires interests in tenements which are indirect or of a nature less than full legal ownership to be entered in the register with the consequence that the interest is void and of no effect if it is not so entered.
5.3.6 Beneficial Ownership As observed above, the registers that have been established by the Mining Act 1992, Oil & Gas Act 1998 and the Unconventional Hydrocarbons Act 2015 clearly record the legal owners of direct or indirect interests in the various licences issued under those pieces of legislation.
In support of ensuring that only beneficial owners are recorded as legal owner in the register, in the case of the Mining Act 1992, the law provides at section 122:
“122. Rights, etc., conferred by this Act only exercisable by holder, etc.
The—
(a) Rights conferred by this Act in relation to a tenement are only exercisable by the holder of the tenement; and
(b) Obligations imposed by this Act in relation to a tenement are only enforceable against the holder of the tenement, except in so far as is otherwise provided for in this Act.”
A similar provision does not appear in the Oil and Gas Act 1998 nor the Unconventional Hydrocarbons Act 2015.
However, in both the Oil and Gas Act 1998 (at section 103) and the Unconventional Hydrocarbons Act 2015 (at section 77), it is provided:
“Power of Minister to require information as to proposed dealings.
(1) The Minister or Director may require the person lodging an instrument for approval under this Division to furnish to him such written information concerning the instrument, or the transaction to which the instrument relates, as the Minister or Director thinks fit.
(2) A person who, when required under Subsection (1) to furnish information, furnishes information that is false or misleading in a material particular is guilty of an offence.”
The Mining Act 1992 at Section 161 puts the power into the hands of the Managing Director of the Mineral Resources Authority and the Minister in the following terms:
“161 Information
(1) The Managing Director may require any person whom the Managing Director reasonably believes to be in possession of information concerning the geology
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and mineral resources of the State, including geotechnical or hydrogeological information, to provide to the Managing Director details or copies of that information.
(2) The—
(a) Minister; or
(b) Managing Director,
may, by notice in writing, require any person to produce, or make available for inspection, any document or information in the possession or under the control of that person relating to—
(c) an instrument, or transaction pertaining to that instrument, lodged for approval or approved under Division VI.2; and
(d) any document relating to mining and exploration activities within the State; and
(e) any information required under the Mining (Royalties) Act 1992.
(3) A person, required under this section to provide information or make available for inspection any document or information, who refuses or fails to do so, is guilty of an offence.
Penalty: A fine not exceeding K10,000.00.”
At present any enquiry by the Minister(s) or the Managing Director of the Mineral Resources Authority in relation to beneficial ownership using the powers provided by the legislation would be undertaken on an ad hoc basis.
In addition to the powers of the resource regulators and obligations of tenement holders under the resources legislation, the Securities Act 1997 contains provisions relevant to reporting beneficial ownership and control for companies to whom the Securities Act applies. A person who has a relevant interest of 5% or more of the shares in a company which is listed on a Papua New Guinea stock exchange or a PNG incorporated company listed on an approved stock exchange (all the major OECD stock exchanges are approved) must report their shareholding on a substantial shareholder notice given to the Company and the Stock Exchange (section 115 of the Securities Act). A person who has given a substantial shareholder notice must also give a notice each time a 1% change in that holding occurs (section 116 of the Securities Act) or when the persons ceases to be a major shareholder (section 117 Securities Act).
As to what comprises a relevant interest is defined in very all-encompassing terms:
“113. Meaning of "relevant interest".
(1) For the purposes of this Part a person has a relevant interest in a voting share (whether or not that person is the registered holder of it) where that person—
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(a) is a beneficial owner of the voting share; or
(b) has the power to exercise any right to vote attached to the voting share; or
(c) has the power to control the exercise of any right to vote attached to the voting share; or
(d) has the power to acquire or dispose of the voting share; or
(e) has the power to control the acquisition or disposition of the voting share by another person; or
(f) under, or by virtue of, any trust, agreement, arrangement, or understanding relating to the voting share (whether or not that person is a party to it) may at any time—
(i) have the power to exercise any right to vote attached to the voting share; or
(ii) have the power to control the exercise of any right to vote attached to the voting share; or
(iii) have the power to acquire or dispose of, the voting share; or
(iv) have the power to control the acquisition or disposition of the voting share by another person.
(2) Where a person has a relevant interest in a voting share by virtue of Subsection (1) and—
(a) that person or its directors are accustomed or under an obligation, whether legally enforceable or not, to act in accordance with the directions, instructions, or wishes of any other person in relation to—
(i) the exercise of the right to vote attached to the voting share; or
(ii) the control of the exercise of any right to vote attached to the voting share; or
(iii) the acquisition or disposition of the voting share; or
(iv) the exercise of the power to control the acquisition or disposition of the share by another person; or
(b) another person has the power to exercise the right to vote attached to 20% or more of the voting share of that person; or
(c) another person has the power to control the exercise of the right to vote attached to 20% or more of the voting share of that person; or
(d) another person has the power to acquire or dispose of 20% or more of the voting share of that person; or
(e) another person has the power to control the acquisition or disposition of 20% or more of the voting share of that person,
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that other person also has a relevant interest in the voting share.
(3) A body corporate or other body has a relevant interest in a voting share in which another body corporate that is related to that body corporate or other body has a relevant interest.
(4) A person who has, or may have, a power referred to in any of Subsection (1)(b) to (f) (inclusive), has a relevant interest in a voting share regardless of whether the power—
(a) is express or implied; or
(b) is direct or indirect; or
(c) is legally enforceable or not; or
(d) is related to a particular voting share or not; or
(e) is subject to restraint or restriction or is capable of being made subject to restraint or restriction; or
(f) is exercisable presently or in the future; or
(g) is exercisable only on the fulfilment of a condition; or
(h) is exercisable alone or jointly with another person or persons.
(5) A power referred to in Subsection (1) exercisable jointly with another person or persons is deemed to be exercisable by either or any of those persons.
(6) A reference to a power includes a reference to a power that arises from, or is capable of being exercised as the result of, a breach of any trust, agreement, arrangement, or understanding, or any of them, whether or not it is legally enforceable.
(7) In this section, a body corporate is related to another body corporate if—
(a) the other body corporate is its holding company or subsidiary;
(b) there is another body corporate to which both bodies are related by virtue of Paragraph (a),
and "related body corporate" has a corresponding meaning.”
The foregoing extract clearly demonstrates the power of this legislation to drill down into schemes of arrangement and understanding between parties to ascertain who really controls shares or has a beneficial interest in them.
In addition sections 124 and 125 of the Securities Act enables the PNG Securities Commission to request from a company to which the provisions apply a notice to the holder of a share to state:
“(a) full particulars of the holder's relevant interest in the shares and of the circumstances because of which the holder has that interest; and
(b) so far as is known to the shareholder—
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(i) full particulars of the name and address of every other person (if any) who has a relevant interest in any of the shares; and
(ii) full particulars of each such interest and of the circumstances because of which the other person has that interest; and
(iii) full particulars of the name and address of each person (if any) who has given to the holder of the shares relevant instructions in relation to any of the shares and of those relevant instructions, and the date or dates on which those relevant instructions were given”
These provisions do not apply to a foreign incorporated company which not on a PNG stock exchange, nor do they apply to a local Papua New Guinea incorporated company which is not listed.
The Companies Act 1997 requires foreign companies to be registered as a company to carry on business in Papua New Guinea. Section 83 of the Companies Act states:
83. Overseas companies to register under this Act.
(1) An overseas company that, on or after the commencement of this Act, commences to carry on business in the country shall apply for registration under this Part in accordance with Section 386 within one month of commencing to carry on business.
However, the Companies Act does not require the overseas company to provide its shareholder details'; it only requires proof of incorporation in a foreign country. Nor does it require any notification of change of shareholder although an annual return must be filed which would disclose shareholders from time to time at the reporting date.
The conclusion to be drawn from this is that there are already extensive powers to enable the beneficial ownership of a resource tenement to be ascertained by the resources regulator and it is already required to be disclosed in the case of companies to which the Securities Act applies (i.e. all companies listed on a PNG stock exchange or PNG companies listed on a recognised foreign exchange).
5.3.7 State Participation in the Extractive Sector The Mining Act, Oil & Gas Act and the Unconventional Hydrocarbons Act each govern the terms on which the State may participate in extractive industries and these Acts also set out the participation entitlements of the provincial governments, local level governments and the landowners.
5.3.7.1 Equity Participation
As a matter of policy in Papua New Guinea the imprimatur of the State to participate in resource projects has ebbed and flowed. Initially the State saw itself only as a regulator and taxer of resources. Then during the 1990s the State saw itself as a participant in resource projects with the establishment of a State minerals and petroleum entity
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known as Orogen. Orogen had a legislated call option over all mineral and petroleum development tenements. The arrival of the early 2000s saw the disposal of the State interest in Orogen and the amendment of the legislation to terminate the call option held by Orogen. By the mid-2000s State activism had returned with an attempt to recreate a State mineral and petroleum house and the holding of certain interests by the Treasury.
The present position is that any right for the State to acquire an interest in a Mining tenement must be imposed by the Minister by a term or condition in the grant of the Mining Lease. This is despite section 16A of the Mining Act which survives as an impotent orphan:
“16A. Acquisition of State Interests.
(1) Notwithstanding any provision of any other Part or the terms of any agreement made by the State—
(a) the State, MRDC and the Company shall each have the right to acquire and, as appropriate, transfer a Participating Interest in a Mining Project in accordance with the Option Agreement; and …
[authors underlining – the Option Agreement is terminated]”
However in the petroleum and hydrocarbon fields, the State has a right under Oil & Gas Act and the Unconventional Hydrocarbons Act to acquire an interest in accordance with the legislation. Pursuant to section 165 of the Oil & Gas Act:
“165. State equity entitlement.
(1) The State has the right (but not the obligation) to acquire, directly or through a nominee, all or any part of a participating interest not exceeding 22.5% in each petroleum project.”
As to unconventional hydrocarbons, section 137 of the Unconventional Hydrocarbons Act:
“137. State equity entitlement.
(1) The State has the right (but not the obligation) to acquire, directly or through a nominee, all or any part of a participating interest not exceeding 22.5 percent in each unconventional hydrocarbons project.”
5.3.7.2 Royalty Participation
The State is also obliged to collect a royalty of 2% of well head value from the license holder under the Mining Act, Oil & Gas Act and the Unconventional Hydrocarbons Act. These royalties are held for project area land owners.
The royalty provisions under the Mining Act are held over from old legislation predating 1992 by the transitional provisions in section 173(5) of the Mining Act. 2% of production is captured. In addition there is a 0.25% production levy imposed by the
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Mineral Resources Authority to fund its operations. This levy is provided for in section 30 of the Mineral Resources Authority Act 2005.
The provisions regarding royalties applicable to petroleum can be found in the Oil & Gas Act:
“159. Royalty.
(1) Subject to Subsections (2) and (3), a tenement holder shall pay to the State royalty at a rate of 2.00% of the wellhead value of all petroleum produced from the licence area.”
The provisions regarding royalties from unconventional hydrocarbons are found in section 131 of the Unconventional Hydrocarbons Act:
“131. Royalty.
(1) Subject to Subsections (2) and (3), a licensee shall pay to the State royalty at a rate of two percent of the wellhead value of all unconventional hydrocarbons produced from the licence area, other than unconventional hydrocarbons which are consumed in unconventional hydrocarbons operations or flared in accordance with the Oil and Gas Act 1998 or injected into a petroleum reservoir.”
The royalty regime is effectively a mechanism for the State to act ‘loco parens’ for the customary landowners whose land is affected by the extractive industry operations.
This role of the State is discussed further below.
5.3.7.3 Participation as Facilitator
In addition to its role as commercial participant and role a custodian of land owner interests ‘loco parens’ , the State plays a significant further role as facilitator and intermediator with resource developers and the Provincial and Local Level Governments.
The Organic Law on Provincial and Local Level Governments (OLPLLG) requires a developer to pay developmental levies to a Provincial Government where the minerals and petroleum will be extracted.
Section 98(2) of OLPLLG states:
“98. Benefits derived from natural resources.
…
(2) Subject to Subsection (7), for each fiscal year, a developer of a natural resource, shall pay out of its own cost—
(a) to the Provincial Governments and the Local-level Governments of the province or area in which the development is situated, development levies in the form of—
(i) infrastructural development levies; and
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(ii) economic development and land use follow-up levies; and
(iii) community and social development levies; and
(iv) any other levies as are from time to time determined by national law or by agreement; and
(b) to the National Government, Provincial Governments or Local-level Governments, land owners benefits in respect of natural resources obtained, for payment to the owners of the land from which the natural resources were obtained.”
The collection of these levies and the payment of grants by the State is a whole topic on its own and the subject of much of the work of the National Economic and Fiscal Commission.
The land in PNG where minerals and petroleum are found is almost without exception un-alienated land owned by customary landowners and not the State. Whilst the State owns the minerals and petroleum the local landowners own the land.
In order for the State and Developer to access the minerals and petroleum compensation is paid to the landowner for the loss of the use of their land. These compensation payments are reflected through Compensation Agreements entered into with the local landowners.
The Compensation Agreements are explicitly provided for in the Mining Act, Oil & Gas Act and the Unconventional Hydrocarbons Act and as these compensation agreements relate to the tenements, the agreements are registered on the tenement records.
The Mining Act provides that the holder of a tenement is liable to pay compensation to the local landowners for the loss and damages to their land. This is set out in section 154 of the Mining Act.
“154. Principles of compensation.
(1) The holder of a tenement is liable to pay compensation, in respect of his entry or occupation of land the subject of the tenement for the purposes of exploration or mining or operations ancillary to mining, to the landholders of the land for all loss or damage suffered or foreseen to be suffered by them from the exploration or mining or ancillary operations.”
The landowners are entitled to compensation for the following as set out under subsection 2 of section 154 of the Mining Act:
“(2) Subject to Subsection (4), the compensation to which landholders are entitled includes compensation for—
(a) being deprived of the possession or use of the natural surface of the land;
(b) damage to the natural surface of the land;
(c) severance of land or any part thereof from other land held by the landholder;
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(d) any loss or restriction of a right of way, easement or other right;
(e) the loss of, or damage to, improvements;
(f) In the case of land under cultivation, loss of earnings;
(g) disruption of agricultural activities on the land; and
(h) social disruption.”
A scale promulgated by the Valuer-General sets the scale of compensation for damage to crops and forests in an objective and consistent manner.
Similarly sections under section 118 of the Oil & Gas Act the licensee is liable to pay compensation to the local landowners:
“118. Compensation.
(1) A licensee shall be liable to pay compensation in accordance with this section to the lawful owners and rightful occupiers of, and any persons interested in, any private land in relation to their several interests, in respect of the entry on or occupation of the land by the licensee under this Division.
(2) Subject to this section, compensation shall be paid for—
(a) the deprivation of the use and enjoyment of the surface of the land or any part of it or of any rights customarily associated with it, except where there has been a reservation in favour of the State of the right to such use and enjoyment; and
(b) damage—
(i) to the surface of the land or any part of it, or any improvements on it; or
(ii) to any trees, fish or animals,
caused by the carrying on of operations by the licensee; and
(c) severance of the land from other land of any owner, occupier or person interested in the land; and
(d) rights of way and easements; and
(e) any other damage consequential on the licensee's use or occupation of the land. “
Section 90 of the Unconventional Hydrocarbons Act also requires the licensee to pay compensation to the local landowners for the conduct of unconventional hydrocarbon activities”
“90. Compensation.
(1) A licensee shall be liable to pay compensation in accordance with this section to the lawful owners and rightful occupiers of, and any persons interested in, any private land in relation to their several interests, in respect of the entry on or occupation of the land by the licensee under this Division.
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(2) Subject to this section, compensation shall be paid for —
(a) the deprivation of the use and enjoyment of the surface of the land or any part of it or of any rights customarily associated with it, except where there has been a reservation in favour of the State of the right to such use and enjoyment; and
(b) damage —
(i) to the surface of the land or any part of it, or any improvements on it; or
(ii) to any trees, fish or animals, caused by the carrying on of operations by the licensee; and
(c) severance of the land from other land of any owner, occupier or person interested in the land; and
(d) rights of way and easements; and
(e) any other damage consequential on the licensee's use or occupation of the land.”
5.3.7.4 Accounting for State Participation
In respect to each of its differing roles, the State is required by the Public Finances (Management) Act to account for its activities and the financial costs or rewards for these activities.
The public accounts must be completed annually and public disclosed in the Gazette. There is therefore public accountability and availability of information on what the State has done for a person minded to search it down and analyse this information.
5.3.8 Requirement for Reform to Comply with EITI Reporting Framework In summary, it appears that Papua New Guinea is already quite close to compliance with the EITI reporting requirements. This legal review has demonstrated that there are strong laws providing for the establishment of rights to extract minerals, oil, gas and what are now termed unconventional hydrocarbons and the recording and regulation of these rights in the various registers.
5.3.8.1 What Law Making Action is Required?
What is not comprehensively provided for at present is the recording of beneficial ownership interests of private companies whether locally incorporated or incorporated outside Papua New Guinea which are recorded in the various registers as direct owners of interests in resource tenements. In the case of companies under the direction of the securities regulator, there is already a beneficial ownership disclosure requirement once a threshold of 5% ownership is achieved and for each 1% change in ownership.
Additionally what is not provided for is a single point of reference for this information.
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In order to reform the laws of Papua New Guinea to achieve full EITI Reporting Framework compliance, the following steps could be implemented:
• A Ministerial Order or Regulation made respectively under the Mining Act, the Oil and Gas Act and Unconventional Hydrocarbons Act requiring:
i. a shareholder in a tenement holder to disclose to the tenement holder if it holds its interest beneficially for another person;
ii. all beneficial ownership information known to a tenement holder to be reported by the tenement holder,
at particular reporting times.
Such an order or regulation can be made using the delegated law making power already given to, as the case may be, the Minister or the Head of State without the matter having to be returned to the Parliament for fresh parliamentary legislation.
• An administrative agreement could be reached between the three regulators involved, namely the Mineral Resources Authority, the Department of Petroleum and Energy and the Securities Commission to collate the reporting information into a database available for public searching.
An appropriate level of maintenance of confidentiality is required to ensure that the State discharges its obligations under the various privacy and secrecy laws applicable in Papua New Guinea. These are discussed below.
5.3.8.2 Privacy and Secrecy Laws
There are several secrecy and privacy laws in operation in Papua New Guinea:
• The Constitution provides at section 51 to all persons an entitlement that secrecy will be maintained by the State in respect of “confidential commercial or financial information obtained from a person or body” and of “geological or geophysical information and data concerning wells and ore bodies”.
• The Income Tax Act provisions in section 9 which explicitly precludes information contained in Income Tax Returns filed by taxpayers being disclosed outside the Internal Revenue Commission (and this will extend to the income tax file numbers, name and other identity information of a taxpayer).
There are limited exceptions and none of the exceptions allow the placing of taxpayer financial data in the EITI register. The provisions of section 9 are so strongly expressed and established that they will withstand even a subpoena from a Court
These secrecy provisions are long standing and are based on the apparently sound public policy that it is in the interests of taxpayers to have confidence in the complete secrecy of the tax office so that they
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disclose their full income without fear that others might obtain personal financial information from the tax office.
5.3.9 Regulators in PNG The legislative review provides the full landscape of the legislative and regulative environment in PNG. The following are a brief of the key state agencies that implement or regulate the legislative framework in PNG.
5.3.9.1 Investment Promotion Authority
The Investment Promotion Act (IPA) 1992 provides for the promotion of investment in PNG in the interests of national, social and economic development. For that purpose, the Investment Promotion (IPA) was established an Authority body known as IPA with defined powers and functions. A foreign enterprise (including a PNG company owned or controlled by non-citizens) must be certified under the IPA to do business in PNG. Subject to certain exceptions, if there is a change in the ownership, shareholding or beneficial ownership or control of a foreign enterprise doing business in PNG, the company must, within 14 days of the change, apply for a fresh certification under the IPA.
PNG has a comprehensive companies’ legislation, the Companies Act 1997 (Companies Act). IPA is the implementing agency of the Companies Act. A company that is incorporated in PNG under the Companies Act and owned or controlled by foreign interests operates in PNG subject to that act. Similarly, a company incorporated outside PNG that is registered to do business in PNG operates subject to the Companies Act. The Companies Act deals with registration of charges, insolvency, as well as a host of other company-related matters.
5.3.9.2 Mineral Resources Authority4
The Mineral Resources Authority (MRA) is the responsible agency for mining activities in PNG. It was created by the Mineral Resources Authority Act (2005) and acts as a regulator of the mining sector; it is subject to reporting and auditing requirements.
MRA receives exploration and mining applications from companies and registers them. The exploration licence applications are registered on first come first serve basis. After all the necessary processes are fulfilled, the applications are forwarded to the Mining Advisory Council (MAC) for its deliberations and recommendations. The Mining Minister then grants, rejects, or otherwise base on the recommendations of the MAC
The sector operates under an overlapping regulatory framework including the 1992 Mining Act, the 1977 Mining (Safety) Act and the PNG Mineral Policy.
4 Source: http://www.resourcegovernance.org/our-work/country/papua-new-guinea
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5.3.9.3 Department of Petroleum and Energy
The Department of Petroleum and Energy issue Oil & Gas tenements in PNG. The register of tenements at the Department of Petroleum and Energy contains details of all applications, details of their grant or refusal and certain other information. Any dealing in a legal or equitable interest in a tenement must first be approved by the Minister for Mining and Petroleum and registered before becomes effective.
5.3.9.4 Internal Revenue Commission (IRC)5
The Internal Revenue Commission (IRC) is responsible for the collection of most of PNG’s Tax Revenue. Although there are many revenue streams administered by IRC, the main ones are; Income Tax, Salary and Wage Tax (SWT) and Goods and Services Tax (GST).
A variety of taxes, imposts and duties are imposed on individuals and business organisations in PNG, including income tax, a form of value-added tax (referred to as goods and services tax, GST), payroll tax, withholding tax, stamp duty and training levies. The tax year is a calendar year running from January 1 to December 31. Companies incorporated in PNG and companies that do business in PNG and whose central management is located in PNG are resident companies. A company that conducts business in PNG must appoint a public officer to represent the company in all dealings with the PNG Taxation Office.
The worldwide income of resident companies and the PNG-sourced income of non-resident companies are taxed. Different rates apply depending on whether the taxpayer is a resident, non-resident, resident or non-resident mining or petroleum company.
It should be mentioned that the following taxes/duties are not the responsibility of the IRC:
- Customs duties and excises
- Mining & Petroleum royalties
5.3.9.5 Papua New Guinea Customs Service (PNG Customs Service)
The PNG Customs Service is responsible for the collection of Customs duties and excises.
PNG Customs Service draws powers from the Customs Act 1951 to control, supervise and authorise all forms of conveyances, persons and cargo that move in and out of Papua New Guinea. PNG Customs Service also has jurisdiction under the Customs and Excise Tariff Acts to charge and collect duties and taxes.
The Commissioner of Customs is the principle officer in the organisation and is responsible to the Treasurer and Minister for Finance.
5 Source: http://irc.gov.pg/
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5.3.9.6 Mining & Petroleum Royalties
From Deloitte’s PNG EITI Scoping Study Report (2015), we can make the following inference that ‘in certain instances Mining Royalties are paid to Finance Trust Accounts, specifically for Future Generations and Infrastructure Trusts.’
Additionally the MRA is responsible for the collection and distribution of the mining and petroleum royalties to different landowner groups. MRA should receive a return on royalty that indicates the amount(s) paid to landowners, which should be relevant to company data.
Furthermore, the cash flows would not be received by MRA, but be received by local or provincial governments or landowners, as mentioned in the agreements.
5.3.10 Key findings on the review of legal and institutional framework in PNG related to BO
1. Currently, the Mining Act 1992 and Oil and Gas Act 1998 does not provide for BO to be disclosed as a requirement under law;
2. The Companies Act 2014 provides for disclosure as a company law requirement (Directors Duties);
3. Income Tax Act 1959 provides for disclosure for tax purposes but not specific BO;
4. Ombudsman Commission PNG re Leadership Code (Alternative Penalties) Act 1976;
5. Constitution of PNG (section 27); and
6. Anti-Money Laundering and Counter Terrorist Financing Act 2015 provides for BO disclosure and politically exposed person (PEP) reporting, albeit high level detail.
5.4 Examination of PNG’s context relating to landowners’ participation in extractive operations and recommendations on how to incorporate this in beneficial ownership disclosures
5.4.1.1 Key findings of PNG’s context relating to landowners’ participation in extractive operations
1. Corporate entities know landowners through their dealings with landowner companies and associations (i.e. entities corporate relations teams)
2. Landowners lack important technical skills and financial capacity to participate or invest in extractive industries
3. Key regulators in PNG who deal with landowners deal with them at a clan or community level and not with every individual who make up the clan or community
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5.4.1.2 Recommendations on how to incorporate landowners’ participation in extractive operations
1. Establish good working relationships with entities that have existing relationships with landowners in order to share landowner information which they collect on field/sites
2. Carry out more awareness with not only landowners but entities as well about PNGEITI’s efforts and requirement that all companies are to disclose BO information by 2020
3. Enshrine in law that key state agencies collect BO information of landowners at individual level as well and not only at clan or community level.
5.5 Assessment of gaps and barriers that will affect full compliance with the EITI Standard’s requirements on beneficial ownership 1. Dearth in awareness regarding the benefits of enhanced BO disclosure.
2. There are no specific National Priorities directly linked to BO, although aspirations which support the EITI principles can be derived from various sources.
3. Lack of EITI principles in the legislative, regulatory and policy framework of PNG.
4. No specific legislation requiring the direct disclosure of BO.
5. BO information is not specifically required during registration process of companies with IPA. The Companies Act does not provide for full BO disclosure.
6. Lack of coordination and support between key state agencies to share BO information;
7. Infrequent and intermittent dialogue interaction with state agencies in the necessary industry.
8. Poor data and record keeping practices by key state agencies who hold key information that can determine BO’s.
9. Lack of identified funding to facilitate full compliance with the EITI Standard’s requirements on beneficial ownership
10. Lack of a fully scoped and detailed roadmap to implement as project plan between 1 January 2017 and 31 December 2020
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5.6 Recommendations on how to address such gaps with clear timelines departmentalized into 9 salient sections:
Overall
• Construct/ create a roadmap keeping the timelines and schedules in check and relevant to industry/economic/political activities i.e. Government/provincial Elections.
• Associate a costing plan to the individual activities and tasks corresponding to the recommendations provided, thus ensuring feasibility of the project.
• Engage with an outsourced professional to act as your Roadmap Implementation Officer/Manager (RIO/RIM), to fully support interested parties in the efficient implementation of a plan into a viable project.
Consideration of the links between Beneficial Ownership and National Reform priorities
1. Advocate at the National and Political level about the advantages of BO disclosure practices so that specific National Priorities can be developed and a law can be created for PNGEITI to operate in PNG.
Timeline: Q2 2017 – Q3 2018
2. Increased awareness regarding the benefits of enhanced BO disclosure to improve public and investor confidence. It is suggested that this activity is undertaken collaboratively and with the cooperation of all key sector participants Awareness may be undertaken by way of:
a. Public road shows in provincial locations; and
b. Industry briefings with sector participants (state agencies, corporate entities that bid for, operate and/or invest in extractive industries in PNG, community service organizations and landowners).
Timeline: Q3 2017 – Q4 2018
3. Agree and advocate EITI principles that should either be embedded and/or enshrined into the legislative, regulatory and policy framework of PNG including determining if there are any legislative impediments that may counter / impeded BO reporting requirements.
Timeline: Q2 2017 – Q1 2019
4. Continued dialogue with state agencies in the extractive industry to harness the necessary political will to support and sustain EITI principles and initiatives.
Timeline: Q4 2017 – Q4 2019
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Consideration of the Institutional Framework for Beneficial Ownership disclosure
5. Identify, discuss and agree opportunities to reform relevant legislation and regulation to embed EITI and beneficial ownership principles noting that the basis in which the PNGEITI National Secretariat operates is an NEC decision i.e. unguaranteed permanency.
Timeline: Q2 2017 – Q1 2019
6. Initiating/Considering a level of BO details to be disclosed by defining precise levels and avenues to be in a position to disclose beneficial ownership by 1st January 2020.
Timeline: Q2 2017– Q3 2018
7. Undertake a comprehensive review of the existing company filing process relevant to BO disclosure in the bidding process and licence registries for resource extractive projects.
Timeline: Q4 2017– Q1 2018
8. Identifying opportunities to streamline processes and procedures internally and inter-department/inter-agency based on processes that may have already been mapped.
Timeline: Q4 2017– Q2 2018
9. Agree on a final list of agencies most suitable to oversee, collate and maintain BO information, including - determining the feasibility of establishing a new office to integrate existing information and systems for the benefit of improved transparency and accountability. It is suggested that this process is undertaken through workshops with key representatives of the resource extractive industries sector.
Timeline: Q4 2017– Q1 2018
10. Should it be established on meritorious/credible grounds that a new office is established, it will be sufficiently resourced to operate with authority, independence and sustainability.
Timeline: Q4 2017– Q1 2018
11. Reform legislation and regulation in order to enshrine EITI principles and beneficial ownership disclosure into law. If there is to be an EITI Act, sufficient consultation must be undertaken to ensure that such legislation compliments (as compared to overlap and possibly conflicting) the Companies Act 2014, Mining Act 1992 and Oil & Gas Act 1998.
Timeline: Q3 2018 – Q4 2019
Determine a definition of Beneficial Ownership in the PNG context
12. A definition of beneficial ownership should be created for PNG. Definition guidance can be sought from existing definitions created by member countries. To mention
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a few, the legal system of Singapore defines beneficial ownership in the context of relation of a customer to a bank. In essence, as the individual who owns/controls the customer thereby including any person who exercises ultimate effective control over a legal person/arrangement. Similarly, the European Union through their Anti-Money Laundering Directives (AMLD) Framework in a broader context, defines the beneficial owner as any individual who ultimately owns or controls the corporate entity or other legal entity and/or the natural person on whose behalf a transaction or activity is being conducted. Furthermore, in the British legal framework, the definition of beneficial offering is even more specific and hence specified based on the context, whether it be trusts, corporate bodies or partnerships.
Timeline: Q2 2017– Q4 2017
Reporting obligation for Politically Exposed Persons (PEPs)
13. Creating a definition of PEP by agreeing on the reporting obligations for PEPs in line with the leadership code and organic law while generating public discourse regarding the PEP reporting requirements.
Timeline: Q3 2017– Q1 2018
14. Engage with Govt and CSOs to advocate developing policies for PEPs to disclose personal interests in extractive industry assets while.
Timeline: Q4 2017– Q3 2018
15. Determining the extent of integrating aforementioned policies into relevant legislation.
Timeline: Q3 2018 – Q1 2019
Consideration of level of detail to be disclosed
16. The PNGEITI MSG agree to the level of beneficial ownership detail participating companies are required to disclose. The PNGEITI MSG will consider the following:
a. The pragmatics of adopting EITI International's recommendations of participating entities disclosing a national identity number, date of birth, residential or service address, and means of contact noting:
i. The inherent challenges of verifying identification and other such information in-country, particularly in the case of PNG domiciled/landowner companies; and
ii. The inherent cultural sensitivity of “imposing” such standards on clan/landowner leaders in light of the often complex social structures in place with landowner companies.
Timeline: Q2 2017– Q2 2018
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17. In the consideration of thresholds as part of the BO definition, a stepped reducing threshold could be considered.
Timeline: Q2 2017– Q4 2017
18. Embed and enshrine the agreed level of beneficial ownership disclosure into relevant PNG regulation and law.
Timeline: Q2 2018 – Q1 2019
Data collection procedures
19. PNGEITI and PNGEITI MSG to discuss and agree on strategies to ensure key state agencies support each other in sharing information that can determine level of BO details to be disclosed.
Timeline: Q2 2017– Q4 2017
20. Extensive consultations with government, companies and civil society to determine the most efficient and sustainable data collection approach which could as an example include the following:
a. Distributing beneficial ownership forms to all eligible companies
b. Incorporating beneficial ownership disclosure requirements into Existing license application process with the MRA and DPE, The company registration process with the IPA; and the Annual reporting process with the IPA
Timeline: Q3 2017– Q4 2018
21. Develop a register that is easily available to the public containing beneficial ownership disclosures of entities that bid for, operate and/or operate in the extractive industry in PNG noting the potential scale and complexity of the task to determine the beneficial owners (i.e. the natural persons) sitting behind each entity at each layer of ownership/control.
Timeline: Q4 2017– Q4 2018
22. PNGEITI MSG to agree the extent of embedding the agreed BO data collection procedures into PNG regulations and law and the course to be taken subsequent to such extensive consultation/debate.
Timeline: Q4 2017– Q1 2019
23. Industry players to agree the extent that participating companies that bid for, operate or invest in the resource extractive industry disclose:
a. The identity of their beneficial owners
b. The ownership threshold for companies to report their shareholders including a separate threshold for politically exposed persons; and
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c. Detail pertaining to the ownership including how the ownership (or control) may be exerted.
Timeline: Q1 2018– Q4 2018
Assuring accuracy of data
24. Assuring reliability and accuracy of data, by agreeing on a pragmatic approach and embedding data assurance procedures into existing regulations and legislations.
Timeline: Q2 2017– Q4 2018
Data timeliness
25. Determining the reporting schedule and timeline of Data in an effort to collect current data from companies to be disclosed for the public register. PNGEITI MSG to discuss and explore the opportunities to disclose data as soon as practically possible having carefully considered the following:
a. The agreed level of data to be collected;
b. The method in which data is collected;
c. The capacity of the office/agency responsible to collect, collate and manage data ; and
d. Whether or not disclosure is provided based on a trigger event (e.g. change in beneficial owner) or regular fixed intervals, or a combination of both.
Timeline: Q2 2017– Q2 2018
26. Key state agencies should seek both financial and technical support to address their data management issues.
Timeline: Q2 2017– Q2 2018
27. Industry players to agree on the frequency in which BO information is collected/disclosed by participating companies.
Timeline: Q3 2017– Q2 2018
28. Key players to agree on the time limits required to disclose beneficial ownership information, to be embedded into existing legislation.
Timeline: Q3 2017– Q4 2018
Data accessibility
29. Allowing easy accessibility of Data through by establishing a public beneficial ownership register, understanding the legal requirements and information
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contained in the existing IPA company register and MRA and DPE license registers, in an effort to optimize streamlining and mainstreaming objectives.
Timeline: Q3 2017– Q2 2018
30. Determining the possibility of merging BO data into existing information systems (corporate and license registers).
Timeline: Q4 2017– Q1 2018
31. Industry Players to agree on specific requirement to ensure BO data is machine readable and user-friendly.
Timeline: Q1 2018– Q1 2018
32. Subsequent to the above activities, key stakeholders should develop a communication strategy/roadshow schedule in order to generate awareness of the publicly available user-friendly data.
Timeline: Q2 2018– Q3 2018
33. Towards the latter stage of the project Industry players should also strive to undertake a ‘Beneficial Offering’ roadshow to concretize the awareness in provinces.
Timeline: Q4 2018– Q4 2019
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6. Appendix A – Phase 2 - Scoping Study detailed task list Tasks Detail Parties
Identify public Sources of Information to determine beneficial owners
KPMG will draw from its local knowledge and experience to identify public sources of information that will assist determining the beneficial owners of the reporting companies. KPMG will also draw on the knowledge of the National Secretariat and EITI International.
KPMG, National Secretariat and EITI International (Oslo).
Confirm public sources of information to determine legislative and regulatory environment
KPMG will draw from its local knowledge and experience as well as that of our legal expert, to Identify the sources of public available information to confirm the legislative, regulatory and governance framework concerning natural resources in PNG and the broader regional and global community. KPMG will also draw from its subject matter expert Mr Alexis d’Intignano who has significant global experience with EITI International.
KPMG, National Secretariat and EITI International (Oslo).
Draft and submit scoping study [Milestone 1]
KPMG will develop a draft Scoping Study which will outline the sources of public available information including the extent of which this information will meet the needs to determine the Beneficial Owners of the reporting entities and other information required to develop the Road Map in the ensuing phases. A draft will be made available to the National Secretariat to receive feedback. Comments will be incorporated accordingly. Delivery of the Scoping Study will represent the completion of Deliverable 2.
KPMG and National Secretariat.
Develop communique to stakeholders
The National Secretariat will develop a communique informing stakeholders of KPMG’s engagement for the BO Scoping Study and Work Plan.
National Secretariat.
Organise consultations with agreed stakeholders (coordinated by PNGEITI Secretariat)
Subsequent to agreeing the list of stakeholders, the National Secretariat will arrange and coordinate consultations with the stakeholders. KPMG will support, as and where required.
National Secretariat, KPMG and Stakeholders.
Develop consultation packs KPMG will develop an information pack in consultation with the National Secretariat to be sent out to the stakeholders prior to the consultations. The information consultation pack will include the following:
• Background to the BO EITI International initiative including its goals and objectives; • A draft work plan that will outline the key tasks and the timeframe the National
Secretariat is working against in order to meet EITI International global deadlines. This includes advising stakeholders of a tentative date for the stakeholder workshop;
• A preliminary list of questions and discussion points that will assist prepare and guide individual consultations; and
• Contact details of key project personnel (National Secretariat and KPMG).
KPMG and National Secretariat.
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Tasks Detail Parties
Information Gathering - Consultations [Milestone 2]
Consultations with stakeholders will be undertaken by representatives of KPMG and the National Secretariat at a time and location suitable to the stakeholder. We have assumed invitations being extended to a ceiling of 30 consultations. The invitation list will be agreed with the National Secretariat. The desired points of discussion in relation to developing the Scoping Study Report will include the following:
• What are the national priorities in relation to Beneficial Ownership; • The extent in which Beneficial Ownership is addressed by the existing legislative,
regulatory and governance framework; • The barriers and gaps that may impact PNGEITI’s full compliance with the EITI
Standard’s requirements on Beneficial Ownership (Requirement 2.5); • Landowner participation in extractive operations and possibilities as to how to
incorporate their participation into the Beneficial Ownership disclosure initiative; and • Suggestions on how to address the identified gaps and determining what may be a
realistic timeline to filling these gaps. The desired points of discuss in relation to developing the Beneficial Ownership Roadmap will include the following:
• Determine if the government has any plans (or is undertaking any activities) to ensure that the corporate entities that bid for, operate or invest in extractive assets (i.e. Beneficial Owners) disclose the identities of their beneficial owners, the level of ownership and details about how ownership or control is exerted;
• Determine pragmatic actions that may assist disclose information relating to the identity of BOs including the name of the BO, the nationality, the country of residence, and the identification of any politically exposed persons (PEPs);
• The steps the Multi-stakeholder Group (MSG) may need to consider in order to agree an approach that promotes Participating Companies to disclose complete and accurate information with regard to beneficial ownership;
• Determine important considerations (and pragmatic actions) the MSG ought to consider when undertaking their requirement to o discuss and decide the definition of “Beneficial Ownership”, o thresholds, joint venture disclosures, and reporting obligations for politically
exposed persons; and o The timeline for implementing the Roadmap activities (including milestones and
deadlines) as well as plans for evaluation and implementation of the Roadmap as part of the annual progress report.
KPMG, National Secretariat and Stakeholders.
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Tasks Detail Parties The above list of discussion points may alter prior to actual undertaking of consultations with stakeholders.
Information Gathering - Desktop (ongoing)
Additional desktop research may be undertaken to supplement the key findings stemming from the consultations with the stakeholders.
KPMG
Synthesis and analysis of information
Information gathered from the consultations will be synthesised and analysed by KPMG. This information will form the basis of the Stakeholder Workshop.
KPMG
Prepare for Stakeholder Workshop
KPMG will organise a Stakeholder Workshop with the support and assistance of the National Secretariat. Workshop preparations will entail developing a PowerPoint presentation that:
• Summarises of the findings and information gathered from the consultations; • Proposes the steps forward to successfully complete the assignment; and • Includes a first cut of the Draft Roadmap for initial feedback.
KPMG and National Secretariat
Conduct Stakeholder Workshop KPMG will facilitate a workshop with the support and assistance of the National Secretariat. Key factors that will impact the successful delivery and outcomes of the workshop include the following:
• The extent of quality and quantity of information provided during the consultations • The availability and attendance of key personnel from the National Secretariat, the
MSG, government, industry and civil society; and • The availability of suitable venue to conduct workshop.
KPMG and National Secretariat
Submission of report on the outcome of the study [Milestone 3]
The successful undertaking of the workshop will represent Milestone 3 – Submission of report on the outcome of the study.
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7. Appendix B – TOR list of PNGEITI Reporting Entities
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8. Appendix C - PNGEITI National Secretariat & PNGEITI MSG list to KPMG; 369 deep
MINING INDUSTRY - SUMMARY LISTS OF LICENCE HOLDERS
EXPLORATION LICENCE (EL) APPLICATION
NO COMPANY NAME LICENCE TYPE
1 ACM Contract Mining (PNG) Limited EL Application
2 Algo Metals Limited EL Application
3 Algo Metals Limited EL Application
4 Algo Metals Limited EL Application
5 Aus PNG Mining Limited EL Application
6 Baldoyle Limited EL Application
7 Ballygowan Limited EL Application
8 Dansar Mining Limited EL Application
9 EL Dorado Mining and Energy Limited EL Application
10 GMG Global Mining Group Limited EL Application
11 Gold Rising Resources (PNG) Limited EL Application
12 Golden Dook International Limited EL Application
13 Heritage Manda Gold Limited EL Application
14 Highlands Pacific Resources Limited EL Application
15 Kair Engineering Limited EL Application
16 Kawari Pacific Limtied EL Application
17 Kawari Pacific Limtied EL Application
18 Kuth Energy (PNG) Limited EL Application
19 Mayur Iron PNG Limited EL Application
20 MB Explorations Limited EL Application
21 Min Metals Limited EL Application
22 Morobe Minerals & Metals Company Limited EL Application
23 Nautilus Minerals Niugini Limited EL Application
24 New Britain Lime & Cement Limited EL Application
25 New Britain Lime & Cement Limited EL Application
26 Niuminco (ND) Limited EL Application
27 Niwasa Limited EL Application
28 Nord Australex Nominees (PNG) Limited EL Application
29 Pacific Sterling Limited EL Application
30 PNG Resources Corporation Limited EL Application
31 Property New Group Limited EL Application
32 RG Pacific Limited EL Application
33 Raffcu Resources Limited EL Application
34 Rio Tinto Exploration (PNG) Limited EL Application
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35 Sagittarius Mining Limited EL Application
36 South PGR Ltd EL Application
37 Summit Development Limited EL Application
38 West Coast Mining Limited EL Application
39 Yonki Holdings Limited EL Application
EXPLORATION LICENCE (EL) RENEWAL
NO COMPANY NAME LICENCE TYPE
1 Alexander Mining Limited EL Renewal
2 Anomaly Limited EL Renewal
3 Apollo Mineral Resources Limited (100%) EL Renewal
4 Barrick (Niugini) Limited EL Renewal
5 Bismarck Mining Corporation (PNG) Limited EL Renewal
6 CRA Minerals (PNG) Limited EL Renewal
7 Copper Quest PNG Limited EL Renewal
8 Frontier Gold (PNG) Limited (100%) EL Renewal
9 Goldmines of Niugini Holdings Limited EL Renewal
10 Harmony Gold (PNG) Exploration Limited (100%) EL Renewal
11 Hells Gate Exploration Limited EL Renewal
12 Highlands Pacific Resources Limited EL Renewal
13 K92 Mining Limited EL Renewal
14 Lava Limited EL Renewal
15 Mayur Exploration PNG Limited EL Renewal
16 Mayur Iron PNG Limited EL Renewal
17 MCC Ramu NiCo Limited EL Renewal
18 Mineral Resources Madang Limited EL Renewal
19 Mineral Resources Ramu Limited EL Renewal
20 Morobe Consolidated Goldfields Limited EL Renewal
21 Morobe Exploration Limited EL Renewal
22 Nautilus Minerals Niugini Limited EL Renewal
23 Newcrest Mining Limited EL Renewal
24 Niugini Gold Limited EL Renewal
25 Normanby Mining PNG Limited EL Renewal
26 Pacific Niugini Minerals (PNG) Limited EL Renewal
27 Pristine No. 18 Limited EL Renewal
28 Ramu Nickel Limited EL Renewal
29 Rio Tinto Exploration (PNG) Limited (100%) EL Renewal
30 Titan Metals Limited EL Renewal
31 Unichamp Jaquinot Limited EL Renewal
32 Vangold (PNG) Limited EL Renewal
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33 Waterford Limited EL Renewal
ACTIVE EXPLORATION LICENCE HOLDERS
NO COMPANY NAME LICENCE TYPE
1 Afrocan Resources Gold (PNG) Limited EL
2 Anomaly Limited EL
3 Apollo Mineral Resources Limited EL
4 Aries Mining Limited EL
5 Aus PNG Mining Limited EL
6 Ballygowan Limited EL
7 Benshill Corporation Limited EL
8 Boomine Investment and Development Company Limited EL
9 Canterbury Resources (PNG) Limited EL
10 Celtic Minerals Limited EL
11 Cheroh Mining PNG Limited EL
12 Copper Quest PNG Limited EL
13 Crater Gold Mining Limited EL
14 Dansar Mining Limited EL
15 Eda Minerals Limited EL
16 EL Dorado Mining and Energy Limited EL
17 ESDA PETROMINING LIMITED EL
18 Finny Limited EL
19 Footprint Resources Pty Ltd EL
20 Frieda River Limited (PanAust Limited) EL
21 Frontier Copper (PNG) Limited EL
22 Frontrunner Exploration PNG Ltd EL
23 Gallipoli Exploration (PNG) Limited EL
24 Giopa Holdings Limited EL
25 GMN 6768 (PNG) Limited EL
26 Golden Dook International Limited EL
27 Hamdei Mines Limited EL
28 Harmony Gold (PNG) Exploration Limited EL
29 Highlands Pacific Limited EL
30 K92 Mining Limited EL
31 Katana Iron Limited EL
32 Kavra Maah Limited EL
33 Khor ENG Hock & Sons (PNG) Limited EL
34 Komomoa Energy Resources PNG Limited EL
35 Lava Limited EL
36 Lihir Gold Limited (Newcrest Mining Limited) EL
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37 Luxembourg Investments Limited EL
38 Mayur Exploration PNG Limited EL
39 MB Transport Limited EL
40 MCC Ramu NiCo Limited EL
41 Mineral Resources Madang Limited EL
42 Mineral Resources Ramu Limited EL
43 Morobe Exploration Limited EL
44 Morobe Minerals & Metals Company Limited EL
45 Nautilus Minerals Niugini Limited EL
46 New Leaf Development Limited (100%) EL
47 Newcrest PNG Exploration Limited (Newcrest Mining Limited) EL
48 Niugini Gold Mining Limited EL
49 Niugini Nickel Limited EL
50 Niuminco (ND) Limited EL
51 Nord Australex Nominees (PNG) Limited EL
52 Oenake Nickel Limited EL
53 Ok Tedi Mining Limited EL
54 Oro Nickel Limited EL
55 Pacific Niugini Minerals (PNG) Limited EL
56 Papuan Minerals Limited EL
57 Pento Resources PNG Limited EL
58 Pristine No. 18 Limited EL
59 Property New Group Limited EL
60 Ramu Nickel Limited EL
61 Regional Resources (PNG) Limited EL
62 Rio Tinto Exploration (PNG) Limited EL
63 Sagittarius Mining Limited EL
64 Sarawaget Minerals Limited EL
65 Solway Group Mining (PNG) Limited EL
66 TVI Pacific Inc EL
67 Telemu No.92 Limited EL
68 Terenure Limited EL
69 Terra Resources Limited EL
70 Titan Metals Limited EL
71 Tolukuma Gold Mines Limited EL
72 Viva No. 20 Limited EL
73 Wafi Mining Limited EL
74 West Coast Mining Limited EL
75 Woodlark Mining Limited (Kula Gold) EL
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76 Yandera Mining Company Limited (Era Resources Inc) EL
MINING LICENCE
NO COMPANY NAME LICENCE TYPE
1 Ok Tedi Mining Limited (Ok Tedi mine) SML
2 Mineral Resources Ok Tedi No.2 Limited SML
3 Mineral Resources Ok Tedi Star SML
4 Newcrest Mining Limited (Liihir mine) SML
5 Barrick (Niugini) Limited (Porgera mine) SML
6 Zijin Mining SML
7 Mineral Resources Enga (MRE) SML
8 MCC Ramu NiCo Limited (Ramu Nickel mine) SML
9 Ramu Nickel Limited (Highlands Pacific Limited) SML
10 Mineral Resources Ramu Limited (Managed by MRDC) SML
11 Mineral Resources Madang Limited (Managed by MRDC) SML
12 Tolukuma Gold Mine Limited (Asidokona) ML
13 Yulai LO Assoication ML
14 Central Provincial Government ML
15 St Barbara (Simberi Gold Mine) ML
16 Harmony Gold (Hidden Valley mine) ML
17 Crater Gold Mining Limited ML
18 Niuminco (Edie Creek) ML
19 New Guinea Gold (Sinivit Mine) ML
20 Nautilus Minerals Niugini Limited (Solwara 1 Project) ML
21 Eda Copper (Solwara 1) - Kumul Minerals Holdings Limited ML
22 Woodlark Mining Limited (Kula Gold) ML
23 Kumul Minerals Holdings Limited ML
24 PanAust (Frieda River Project) SML Application - June 2016
25 Highlands Pacific Limited) SML Application - June 2016
26 Kumul Minerals Holdings Limited (when State exercise the option to take 30% )
SML Application - June 2016
27 Wafi-Golpu JV (Newcrest Mining & Harmony Gold) SML Application - August 2016
28 Kumul Minerals Holdings Limited (when State exercise the option to take 30% )
SML Application - August 2016
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Notes: 1. Companies listed above in different categories may hold more than one licence under a company and or several subsidary company names. 2. There may be other licence holders between 2013 and 2015 that may have pulled out or surrended their licences that are not captured in this list. 3. EL Exploration Licence; SML - Special Mining Lease; ML - Mining Lease 4. Other leases granted to a mining operation includes; LMP - Lease for Mining Purposes; ME - Mining Easement; etc… 5. Other vital permits granted includes; Environmental Permit, CASA certification, and etc…
OIL & GAS INDUSTRY - SUMMARY LISTS OF LICENCE HOLDERS
PETROLEUM PROSPECTING LICENCE APPLICATION (APPL)
NO COMPANY NAME LICENCE TYPE
1 Amulet Energy Limited APPL
2 Anivattok Ltd 16 APPL
3 BE Infrastructure Pty Ltd APPL
4 Bismark Oil Company Limited APPL
5 CMSS (PNG) Limited APPL
6 Doo Chang Energy (PNG) Limited APPL
7 Eaglewood Energy APPL
8 Eaglewood Energy Ltd APPL
9 Eaglewoood Energy Ltd APPL
10 Esso PNG Exploration Ltd APPL
11 Esso PNG Finch Ltd APPL
12 Esso PNG Papuan Gulf Ltd APPL
13 Esso PNG Robin Ltd APPL
14 ExxonMobil PNG APPL
15 ExxonMobil PNG Hero Ltd APPL
16 ExxonMobil PNG Oriole Ltd APPL
17 Genesis Resource Limited APPL
18 Geoforce Drilling Ltd APPL
19 Helios No. 56 Limited APPL
20 Heritage - Baldoyle Ltd APPL
21 Heritage Niugini Ltd APPL
22 Hides Gas Development Company Ltd APPL
23 Horizon Oil (Papua) Ltd APPL
24 Hydro Resource Ltd APPL
25 Kengaku Petroleum Limited APPL
26 Kina Petroleum Ltd APPL
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27 M & A Energy Corporation Ltd APPL
28 Monaghan Limited APPL
29 National Petroleum Company PNG APPL
30 New Guinea Energy Limited APPL
31 Ocean Energy Limited APPL
32 Oil Search (PNG) Ltd APPL
33 Oil Search Ltd APPL
34 Ophir Ltd APPL
35 PCP Energy Ltd 61 APPL
36 Peak Oil (PNG) Pty Ltd APPL
37 PetroGas APPL
38 PING (PNG) Limited APPL
39 Platanus Resources Ltd APPL
40 Quantum International Ltd APPL
41 Rawson Resources Ltd APPL
42 Sabrage Limited APPL
43 South Pacific (PNG) Energy Ltd APPL
44 SPI (208) Ltd APPL
45 SPI (210) Ltd APPL
46 SPI (220) Ltd APPL
47 T&S Petroleum Ltd APPL
48 Talisman Energy Limited APPL
49 Talisman Energy Niugini Ltd APPL
50 Telemu No. 18 Ltd APPL
51 Total E&P PNG APPL
52 Twhite Petroleum Pty Ltd APPL
53 United Pacific Drilling (PNG) Ltd APPL
54 Wagaman Petroleum Exploration Limited APPL
PETROLEUM PROSPECTING LICENCE APPLICATION (APPL)
NO COMPANY NAME LICENCE TYPE
1 Ampolex (Highlands) Pty Ltd PPL
2 BHP Petroleum (PNG) Inc. PPL
3 BIMEX Ltd & Saimangec PPL
4 Coral Sea Petroleum Ltd PPL
5 Destinee Energy Limited PPL
6 Deutsche Group Ltd PPL
7 Eaglewood Energy Ltd PPL
8 Elevala Energy Ltd PPL
9 Esso Highlands Pty Ltd (Op) PPL
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10 Gini Energy Limit PPL
11 Hillsborough Ltd PPL
12 Hornby Energy Ltd PPL
13 InterOil (PNG) Ltd PPL
14 InterOil Australia (SPI) 200 Ltd PPL
15 Jurassic International Holdings PPL
16 Kengaku Petroleum Ltd PPL
17 Ketu Petroleum Ltd PPL
18 Kina Petroleum Ltd PPL
19 Ladysmith Ltd [NGE] PPL
20 Merlin Petroleum Company PPL
21 Min Oil Resources Ltd PPL
22 Mitsui E&P Australia Pty Ltd PPL
23 New Port Oil & Gas Ltd PPL
24 New Ports Holding 1 (PNG) Ltd PPL
25 New Ports Holding 2 (PNG) Ltd PPL
26 Oil Search PPL
27 Oil Search (PNG) Ltd PPL
28 Palmer Petroleum Pty Ltd PPL
29 Peak Oil (PNG) Ltd PPL
30 Penant Resources Ltd PPL
31 Petro Energy Limited PPL
32 Petromin PNG Holdings Ltd PPL
33 Sabrage Ltd PPL
34 PT MEDCOENERGI INTERNASIONAL TBK PPL
35 Rockwell Exploration S.A PPL
36 Roebuck Ltd [NGE] PPL
37 Samchang PNG Ltd PPL
38 Sasol Petroleum Ltd PPL
39 Talisman Energy Niugini Ltd PPL
40 Talisman Oil Ltd (Op) PPL
41 Taurus Oil Ltd PPL
42 Telemu No.18 Ltd PPL
43 TESCOM Ltd PPL
44 Twhite Petroleum Pty Ltd PPL
45 Twinza Oil (PNG) Ltd PPL
46 Victoria Petroleum (PNG) Ltd PPL
47 Wondecla Ltd PPL
48 YLP Holdings Ltd PPL
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PETROLEUM RETENTION LICENCE (PRL)
NO COMPANY NAME LICENCE TYPE
1 Repsol SA (Operator) PRL 38 (Pandora)
2 Twinza Oil (PNG) Ltd PRL 38 (Pandora)
3 Kina Petroleum Ltd PRL 38 (Pandora)
4 Twinza Oil (PNG) Ltd PRL 38 (Pandora)
5 Santos Limited PRL 38 (Pandora)
1 SPI InterOil (220) Ltd PRL 39 (Triceratops)
2 InterOil Partners Limited PRL 39 (Triceratops)
1 Transform Exploration Pty Ltd PRL 28 (Ubuntu)
2 Repsol SA PRL 28 (Ubuntu)
3 Dimond Gas Niugini B.V PRL 28 (Ubuntu)
4 P3 Global Energy Co. Ltd PRL 28 (Ubuntu)
1 Esso PNG P'nyang Limited (ExxonMobil) PRL 3 (P'nyang)
2 Oil Search PNG Limited PRL 3 (P'nyang)
3 Oil Search PRL 3 (P'nyang)
4 Ampolex PNG Limited (ExxonMobil) PRL 3 (P'nyang)
5 Merlin Petroleum Company (NOEX) PRL 3 (P'nyang)
1 Oil Search Ltd (Op) PRL 8 (Kimu)
2 Oil Search PNG Limited PRL 8 (Kimu)
3 Repsol SA PRL 8 (Kimu)
4 Diamond Gas Niugini B.V PRL 8 (Kimu)
1 Oil Search PNG Limited PRL 9 (Barikewa)
2 Barracuda Pty Ltd (Santos) PRL 9 (Barikewa)
3 National Petroleum Company PNG (Kumul Petroleum) PRL 9 (Barikewa)
1 Oil Search Limited PRL 10 (Uramu)
2 Oil Search Uramu Ltd PRL 10 (Uramu)
3 Oil Search PNG Limited PRL 10 (Uramu)
1 Heritage Oil Plc PRL 13 (Kuru)
2 Esrey Energy PRL 13 (Kuru)
1 Oil Search (PNG) Ltd PRL 14 (Cobra,Iehi & Bilip)
2 Murray Petroleum Co Ltd PRL 14 (Cobra,Iehi & Bilip)
3 National Petroleum Company PNG (Kumul Petroleum) PRL 14 (Cobra,Iehi & Bilip)
1 Total E&P PNG Limited PRL 15 (Elk/Antelope)
2 SPI InterOil (208) Ltd PRL 15 (Elk/Antelope)
3 Oil Search PRL 15 (Elk/Antelope)
4 Other Minorities PRL 15 (Elk/Antelope)
1 Horizon Oil (Papua) Ltd (Operator) PRL 21 (Elavala/Ketu)
2 Repsol SA PRL 21 (Elavala/Ketu)
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3 Kina Petroelum Ltd PRL 21 (Elavala/Ketu)
4 Dimond Gas Niugini B.V PRL 21 (Elavala/Ketu)
5 Osaka Gas Niugini Limited PRL 21 (Elavala/Ketu)
PETROLEUM DEVELOPMENT LICENCE (PDL)
NO COMPANY NAME LICENCE TYPE
1 Esso Highlands Pty Ltd (Op) PDL 1 (Hides)
2 Lavana Limited PDL 1 (Hides)
3 Santos Hides Ltd PDL 1 (Hides)
4 Oil Search (Tumbudu) Ltd PDL 1 (Hides)
5 Kroton No.2 Ltd PDL 1 (Hides)
6 Gas Resources Gigira Ltd PDL 1 (Hides)
Oil Search (Tumbudu) Ltd PDL 1 (Hides GTE))
1 Oil Search (PNG) Ltd (Op) PDL 2 (Kutubu)
2 Orogen Minerals Ltd PDL 2 (Kutubu)
3 Ampolex (PNG) Inc (ExxonMobil) PDL 2 (Kutubu)
4 Merlin Petroleum Company (NOEX) PDL 2 (Kutubu)
5 Petroleum Resources Kutubu PDL 2 (Kutubu)
6 Merlin Pacific Oil Co. (ExxonMobil) PDL 2 (Kutubu)
Oil Search PNG Limited PDL 2 (SE Mananda)
Merlin Petroleum Co. Ltd (NOEX) PDL 2 (SE Mananda)
Petroleum Resources Kutubu PDL 2 (SE Mananda)
1 Oil Search (PNG) Ltd (Op) PDL 3 (SE Gobe)
2 Southern Highlands Petroleum PDL 3 (SE Gobe)
4 Barracuda Pty Ltd (Santos) PDL 3 (SE Gobe)
5 National Petroleum Company PNG (Kumul Petroleum) PDL 3 (SE Gobe)
6 Petroleum Resources Gobe Ltd PDL 3 (SE Gobe)
1 Oil Search (PNG) Ltd (Op) PDL 4 (Gobe Main)
2 Ampolex (Highlands) Pty Ltd (ExxonMobil) PDL 4 (Gobe Main)
3 Merlin Petroleum Company PDL 4 (Gobe Main)
4 Petroleum Resource Gobe PDL 4 (Gobe Main)
1 Esso PNG Moran Ltd (ExonMobil) PDL 5 (Moran)
2 Oil Search (PNG) Ltd PDL 5 (Moran)
3 Eda Oil Ltd - Petromin (now transferred to Kumul Petroleum) PDL 5 (Moran)
4 Petroleum Resource Moran Ltd PDL 5 (Moran)
1 Oil Search (PNG) Ltd PDL 6 (NW Moran)
2 Ampolex (Highlands) Ltd (ExxonMobil) PDL 6 (NW Moran)
3 Marlin Petroleum Company (NOEX) PDL 6 (NW Moran)
4 Petroleum Resources North West Moran Ltd PDL 6 (NW Moran)
1 ExxonMobil PNG Ltd PDL 7 (Hides - LNG)
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2 Oil Search (Tumbudu) Ltd PDL 7 (Hides - LNG)
National Petroleum Company PNG (Kumul Petroleum) PDL 7 (Hides - LNG)
Gas Resource Hides No.4 Ltd PDL 7 (Hides - LNG)
1 ExxonMobil PNG Ltd PDL 8 (Angore LNG)
2 Oil Search (Tumbudu)Ltd PDL 8 (Angore LNG)
National Petroleum Company PNG (Kumul Petroleum) PDL 8 (Angore LNG)
Gas Resources Angore Ltd PDL 8 (Angore LNG)
1 Esso PNG Juha Limited (ExxonMobil) PDL 9 (Juha - LNG)
2 Ampolex PNG Ltd (ExxonMobil) PDL 9 (Juha - LNG)
3 Nippon PNG LNG LLC PDL 9 (Juha - LNG)
4 Oil Search (Tumbudu) Ltd PDL 9 (Juha - LNG)
5 National Petroleum Company PNG (Kumul Petroleum) PDL 9 (Juha - LNG)
Gas Resources Juha No.1 Ltd PDL 9 (Juha - LNG)
Horizon Oil (Papua) Limited PDL 10 (Stanley)
Repsol SA PDL 10 (Stanley)
Osaka Gas Niugini Limited PDL 10 (Stanley)
Diamond Gas Niugini B.V PDL 10 (Stanley)
Notes:
1. Companies listed above in different categories may hold more than one licence under a company and or several subsidiary company names. 2. There may be other licence holders between 2013 and 2015 that may have pulled out (farm-in agreement) and or surrended their licences that are not captured in this list. 3. APPL - Applications for Prospecting Licence; PPL - Petroleum Prospecting Licence; PRL - Petroleum Retention Licence; PDL - Petroleum Development Licence; 4. Other vital permits granted (not included in the list above) includes; Environmental, pipeline, and etc… 5. Common facilities and unit fields are not included in the list above.
Stakeholders No. Name Type
1 Ampolex (Highlands) Limited Reporting entity
2 Ampolex (Papua New Guinea) Limited Reporting entity
3 Ampolex (PNG Petroleum), Inc. Reporting entity
4 Anomaly Limited Reporting entity
5 Barracuda Limited Reporting entity
6 Barrick (Niugini) Limited Reporting entity
7 Eda Kopa (Solwara) Limited Reporting entity
8 Eda Oil Limited Reporting entity
9 Esso PNG Juha Limited Reporting entity
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10 Esso PNG Moran Limited Reporting entity
11 ExxonMobil PNG Limited Reporting entity
12 Gas Resource Gigira Limited Reporting entity
13 Gas Resources Angore Limited Reporting entity
14 Gas Resources Hides No.4 Limited Reporting entity
15 Gas Resources Juha No.1 Limited Reporting entity
16 Harmony Gold Limited Reporting entity
17 K92 Mining Limited Reporting entity
18 Kumul Petroleum Holdings Limited Reporting entity
19 Lavana Limited Reporting entity
20 Merlin Pacific Oil Company Limited Reporting entity
21 Merlin Petroleum Company Reporting entity
22 Mineral Resources Enga Limited Reporting entity
23 Mineral Resources Madang Limited Reporting entity
24 Mineral Resources Ok Tedi Star No.2 Limited Reporting entity
25 Mineral Resources Ramu Limited Reporting entity
26 National Petroleum Company of PNG Reporting entity
27 National Petroleum Company of PNG (Kroton) Limited Reporting entity
28 Nautilus Minerals Niugini Limited Reporting entity
29 New Guinea Gold Limited Reporting entity
30 Newcrest Mining Limited Reporting entity
31 Nippon Papua New Guinea LNG LLC Reporting entity
32 Niuminco Eddie Creek Limited Reporting entity
33 NPCP Oil Company Pty Limited Reporting entity
34 Oil Search (PNG) Limited Reporting entity
35 Oil Search (Tumbudu) Limited Reporting entity
36 Ok Tedi Mining Limited Reporting entity
37 Petroleum Resources Gobe Limited Reporting entity
38 Petroleum Resources Kutubu Limited Reporting entity
39 Petroleum Resources Moran Limited Reporting entity
40 Petroleum Resources North West Moran Limited Reporting entity
41 Petromin Holdings Limited Reporting entity
42 Ramu Nikel Limited Reporting entity
43 Santos Hides Limited Reporting entity
44 Southern Highlands Petroleum Co., Ltd Reporting entity
45 St Barbara Limited Reporting entity
46 Woodlark Mining Limited Reporting entity
47 Internal Revenue Commission Government entity
48 Minerals Resource Authority Government entity
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49 Department of Treasury Government entity
50 Department of Finance Government entity
51 Department of Petroleum and Energy Government entity
52 Department of National Planning & Monitoring Government entity
53 PNG Customs Government entity
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9. Appendix D – 203 contact entities list – to PNGEITI for input 1 ACM Contract Mining (PNG) Limited
2 Afrocan Resources Gold (PNG) Limited
3 Alexander Mining Limited
4 Algo Metals Limited
5 Ampolex
6 Amulet Energy Limited
7 Anivattok Ltd 16
8 Anomaly Limited
9 Apollo Mineral Resources Limited
10 Aries Mining Limited
11 Aus PNG Mining Limited
12 Baldoyle Limited
13 Ballygowan Limited
14 Barracuda Pty Ltd (Santos)
15 Barrick (Niugini) Limited
16 BE Infrastructure Pty Ltd
17 Benshill Corporation Limited
18 BHP Petroleum (PNG) Inc.
19 BIMEX Ltd & Saimangec
20 Bismarck Mining Corporation (PNG) Limited
21 Bismark Oil Company Limited
22 Boomine Investment and Development Company Limited
23 Canterbury Resources (PNG) Limited
24 Celtic Minerals Limited
25 Central Provincial Government
26 Cheroh Mining PNG Limited
27 CMSS (PNG) Limited
28 Copper Quest PNG Limited
29 Coral Sea Petroleum Ltd
30 CRA Minerals (PNG) Limited
31 Crater Gold Mining Limited
32 Dansar Mining Limited
33 Destinee Energy Limited
34 Deutsche Group Ltd
35 Diamond Gas Niugini B.V
36 Doo Chang Energy (PNG) Limited
37 Eaglewood Energy
38 EL Dorado Mining and Energy Limited
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39 Elevala Energy Ltd
40 ESDA PETROMINING LIMITED
41 Esrey Energy
42 ExxonMobil PNG
43 Finny Limited
44 Footprint Resources Pty Ltd
45 Frieda River Limited (PanAust Limited)
46 Frontier Copper (PNG) Limited
47 Frontrunner Exploration PNG Ltd
48 Gallipoli Exploration (PNG) Limited
49 Genesis Resource Limited
50 Geoforce Drilling Ltd
51 Gini Energy Limit
52 Giopa Holdings Limited
53 GMG Global Mining Group Limited
54 GMN 6768 (PNG) Limited
55 Gold Rising Resources (PNG) Limited
56 Golden Dook International Limited
57 Goldmines of Niugini Holdings Limited
58 Hamdei Mines Limited
59 Harmony Gold
60 Helios No. 56 Limited
61 Hells Gate Exploration Limited
62 Heritage - Baldoyle Ltd
63 Heritage Manda Gold Limited
64 Heritage Niugini Ltd
65 Heritage Oil Plc
66 Hides Gas Development Company Ltd
67 Highlands Pacific Limited
68 Highlands Pacific Resources Limited
69 Hillsborough Ltd
70 Horizon Oil
71 Hornby Energy Ltd
72 Hydro Resource Ltd
73 InterOil
74 Jurassic International Holdings
75 K92 Mining Limited
76 Kair Engineering Limited
77 Katana Iron Limited
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78 Kavra Maah Limited
79 Kawari Pacific Limited
80 Kengaku Petroleum Limited
81 Ketu Petroleum Ltd
82 Khor ENG Hock & Sons (PNG) Limited
83 Kina Petroleum Ltd
84 Komomoa Energy Resources PNG Limited
85 Kroton No.2 Ltd
86 Kumul Minerals Holdings Limited
87 Kumul Petroleum
88 Kuth Energy (PNG) Limited
89 Ladysmith Ltd [NGE]
90 Lava Limited
91 Lavana Limited
92 Luxembourg Investments Limited
93 M & A Energy Corporation Ltd
94 Marlin Petroleum Company (NOEX)
95 Mayur Exploration PNG Limited
96 Mayur Iron PNG Limited
97 MB Explorations Limited
98 MB Transport Limited
99 MCC Ramu NiCo Limited
100 Merlin Pacific Oil Co. (ExxonMobil)
101 Merlin Petroleum Company
102 Min Metals Limited
103 Min Oil Resources Ltd
104 Mitsui E&P Australia Pty Ltd
105 Monaghan Limited
106 Morobe Consolidated Goldfields Limited
107 Morobe Exploration Limited
108 Morobe Minerals & Metals Company Limited
109 MRDC
110 Murray Petroleum Co Ltd
111 Nautilus Minerals Niugini Limited
112 New Britain Lime & Cement Limited
113 New Guinea Energy Limited
114 New Guinea Gold (Sinivit Mine)
115 New Leaf Development Limited (100%)
116 New Port Oil & Gas Ltd
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117 Newcrest Mining Limited
118 Nippon PNG LNG LLC
119 Niugini Gold Mining Limited
120 Niugini Nickel Limited
121 Niuminco
122 Niwasa Limited
123 Nord Australex Nominees (PNG) Limited
124 Normanby Mining PNG Limited
125 Ocean Energy Limited
126 Oenake Nickel Limited
127 Oil Search
128 Ok Tedi Mining Limited
129 Ophir Ltd
130 Oro Nickel Limited
131 Orogen Minerals Ltd
132 Osaka Gas Niugini Limited
133 Other Minorities
134 P3 Global Energy Co. Ltd
135 Pacific Niugini Minerals (PNG) Limited
136 Pacific Sterling Limited
137 Palmer Petroleum Pty Ltd
138 PanAust (Frieda River Project)
139 Papuan Minerals Limited
140 PCP Energy Ltd 61
141 Peak Oil (PNG) Ltd
142 Penant Resources Ltd
143 Pento Resources PNG Limited
144 Petro Energy Limited
145 PetroGas
146 PING (PNG) Limited
147 Platanus Resources Ltd
148 PNG Resources Corporation Limited
149 Pristine No. 18 Limited
150 Property New Group Limited
151 PT MEDCOENERGI INTERNASIONAL TBK
152 Quantum International Ltd
153 Raffcu Resources Limited
154 Ramu Nickel Limited
155 Rawson Resources Ltd
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156 Regional Resources (PNG) Limited
157 Repsol SA
158 RG Pacific Limited
159 Rio Tinto Exploration (PNG) Limited
160 Rockwell Exploration S.A
161 Roebuck Ltd [NGE]
162 Sabrage Limited
163 Sagittarius Mining Limited
164 Samchang PNG Ltd
165 Santos Limited
166 Sarawaget Minerals Limited
167 Sasol Petroleum Ltd
168 Solway Group Mining (PNG) Limited
169 South Pacific (PNG) Energy Ltd
170 South PGR Ltd
171 Southern Highlands Petroleum
172 St Barbara (Simberi Gold Mine)
173 Summit Development Limited
174 T&S Petroleum Ltd
175 Talisman Energy Limited
176 Taurus Oil Ltd
177 Telemu No. 18 Ltd
178 Telemu No.92 Limited
179 Terenure Limited
180 Terra Resources Limited
181 TESCOM Ltd
182 Titan Metals Limited
183 Total E&P PNG
184 Transform Exploration Pty Ltd
185 TVI Pacific Inc
186 Twhite Petroleum Pty Ltd
187 Twinza Oil (PNG) Ltd
188 Unichamp Jaquinot Limited
189 United Pacific Drilling (PNG) Ltd
190 Vangold (PNG) Limited
191 Victoria Petroleum (PNG) Ltd
192 Viva No. 20 Limited
193 Wafi Mining Limited
194 Wagaman Petroleum Exploration Limited
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195 Waterford Limited
196 West Coast Mining Limited
197 Wondecla Ltd
198 Woodlark Mining Limited (Kula Gold)
199 Yandera Mining Company Limited (Era Resources Inc)
200 YLP Holdings Ltd
201 Yonki Holdings Limited
202 Yulai LO Assoication
203 Zijin Mining
204 Internal Revenue Commission
205 Minerals Resource Authority
206 Department of Treasury
207 Department of Finance
208 Department of Petroleum and Energy
209 Department of National Planning & Monitoring
210 PNG Customs
211 IPA
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10. Appendix E – Final stakeholder entities list of 52 stakeholders
Proposed Consultation List Mining PetroleumConsulting Entity Sector EL EL
ApplicationEL Renewal
ML SML SML Application
APPL PDL
PPL
PRL
No of License Types
Type of Entity
1 MRA Mining 0 Regulator2 Highlands Pacific Limited Mining x x x x 4 Corporate Entity3 Kumul Minerals Holdings Mining x x x x 4 SOE4 Nautilus Minerals Niugini Ltd Mining x x x x 4 Corporate Entity5 Newcrest Mining Mining x x x x 4 Corporate Entity6 Harmony Gold Mining x x x 3 Corporate Entity7 MCC Ramu NiCo Ltd Mining x x x 3 Corporate Entity8 Niuminco Mining x x x 3 Corporate Entity9 Ramu Nickel Ltd Mining x x x 3 Corporate Entity
10 Rio Tinto Mining x x x 3 Corporate Entity11 MRDC Mining/Oil & Gas x x x x 4 Landowner Co12 DPE Oil & Gas 0 Regulator13 ExxonMobil Oil & Gas x x x x 4 Corporate Entity14 OilSearch Oil & Gas x x x x 4 Corporate Entity15 Ampolex Oil & Gas x x x 3 Corporate Entity16 Horizon Oil Oil & Gas x x x 3 Corporate Entity17 Kina Petroleum Oil & Gas x x x 3 Corporate Entity18 Kumul Petroleum Oil & Gas x x x 3 SOE19 Merlin Petroleum Company Oil & Gas x x x 3 Corporate Entity20 Repsol SA Oil & Gas x x 2 Corporate Entity21 Total E&P PNG Oil & Gas x x 2 Corporate Entity22 Santos Limited Oil & Gas x x 2 Corporate Entity
10 4 8 4 4 3 6 9 6 1023 Institute of National Affairs Private non-profit research institute / Think Tank24 Chamber of Mining & Petroleum Peak Body25 Internal Revenue Commission State Agency26 Department of Treasury State Agency27 Department of Finance State Agency28 Department of National Planning & Monitoring State Agency29 PNG Customs State Agency30 IPA State Agency
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Continuation of Appendix E – Final Stakeholders Entities list of 52 stakeholders
Proposed Consultation List Mining PetroleumConsulting Entity Sector EL EL
ApplicationEL Renewal
ML SML SML Application
APPL PDL
PPL
PRL
No of License Types
Type of Entity
Questionairres 1 Barracuda Pty Ltd (Santos) Oil & Gas x x 2 Corporate Entity2 Diamond Gas Niugini B.V Oil & Gas x x 2 Corporate Entity3 Eaglewood Energy Oil & Gas x x 2 Corporate Entity4 Kengaku Petroleum Limited Oil & Gas x x 2 Corporate Entity5 Osaka Gas Niugini Limited Oil & Gas x x 2 Corporate Entity6 Peak Oil (PNG) Ltd Oil & Gas x x 2 Corporate Entity7 Sabrage Limited Oil & Gas x x 2 Corporate Entity8 Talisman Energy Limited Oil & Gas x x 2 Corporate Entity9 Twhite Petroleum Pty Ltd Oil & Gas x x 2 Corporate Entity
10 Twinza Oil (PNG) Ltd Oil & Gas x x 2 Corporate Entity13 Aus PNG Mining Limited Mining x x 2 Corporate Entity15 Barrick (Niugini) Limited Mining x x 2 Corporate Entity16 Copper Quest PNG Limited Mining x x 2 Corporate Entity20 Frontier Copper (PNG) Limited Mining x x 2 Corporate Entity24 Mayur Exploration PNG Limited Mining x x 2 Corporate Entity25 Mayur Iron PNG Limited Mining x x 2 Corporate Entity26 Morobe Exploration Limited Mining x x 2 Corporate Entity27 Morobe Minerals & Metals Company Limited Mining x x 2 Corporate Entity28 Niugini Gold Mining Limited Mining x x 2 Corporate Entity29 Nord Australex Nominees (PNG) Limited Mining x x 2 Corporate Entity30 Ok Tedi Mining Limited Mining x x 2 Corporate Entity31 Pacific Niugini Minerals (PNG) Limited Mining x x 2 Corporate Entity
25 11 14 2 2 0 6 3 7 4
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11. Appendix F – PNGEITI BO Consultation Pack (48 pages)
Page 83 of 131
Continuation of Appendix F – PNGEITI BO Consultation Pack (2/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (3/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (4/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (5/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (6/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (7/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (8/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (9/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (10/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (11/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (12/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (13/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (14/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (15/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (16/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (17/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (18/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (19/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (20/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (21/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (22/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (23/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (24/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (25/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (26/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (27/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (28/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (29/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (30/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (31/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (32/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (33/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (34/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (35/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (36/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (37/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (38/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (39/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (40/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (41/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (42/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (43/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (44/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (45/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (46/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (47/48 pages)
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Continuation of Appendix F – PNGEITI BO Consultation Pack (48/48 pages)
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12. Appendix G – PNGEITI Consultations Status Chart as at 1st February 2017
Above: Progress chart for 20 Oil & Gas entities and 9 State Agencies
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Continuation of Appendix XX - PNGEITI Consultations Status Chart as at 1st February 2017 (2/2 pgs)
Above: Progress chart for 22 Mining Entities and 1 State Agency
