Oil and Gas Act 1998.

INDEPENDENT STATE OF PAPUA NEW GUINEA. No. 49 of 1998.

Oil and Gas Act 1998.

Consolidated to No. 35 of 2007

[As amended by all amendments that commenced on or before 27th November 2007] This Reprint was prepared by the Department of Petroleum and Energy WARNING: This Reprint is NOT an Authorised Copy

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ARRANGEMENT OF SECTIONS.

PART I. ? PRELIMINARY.

1. Compliance with constitutional requirements, etc.

2. Application of provisions of Organic Law on Provincial Governments and Locallevel Governments.

3. Interpretation ? "access arrangements" "affected Local-level Government" "affected Provincial Government" "annual fee" "approved" "arbitration" "authorised officer" "block" "the Board" "buffer zone" "the Chief Inspector" "the Chief Warden" "commence to construct" "commencement date" "the Company" ... [Repealed] "dedicated project facility" "development agreement" "development forum" "the Director" "document" "domestic gas operator" "domestic gas supplier" "domestic utilisation" "drilling" "equity benefit" "Expenditure Implementation Committee" "flow lines or gathering lines" "former Act" "gas agreement" "gas field" "gas project" "good oilfield practice" "graticular section" "improvements"

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"incorporated land group" "in-plant piping" "inspector" "land" "licence" "licence area" "licensee" "location" "low water line" "major modification" "month" "MRDC" "natural gas" "NGC" "offshore area" "option" ...[Repealed] "option agreement" ... [Repealed] "Orogen option project" ... [Repealed] "participating interest" "petroleum" "petroleum development licence" "petroleum development licensee" "petroleum pool" "petroleum processing" "petroleum processing facility" "petroleum processing facility licence" "petroleum processing facility licensee" "petroleum product" "petroleum project" "petroleum prospecting licence" "petroleum prospecting licensee" "petroleum retention licence" "petroleum retention licensee" "pipeline" "pipeline licence" "pipeline licensee" "private land" "processed petroleum" "project area landowners" "project assets" "project pipeline" "pumping station" "Register" "registered holder" "royalty benefit" "royalty period"

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"State equity entitlement" "storage" "strategic petroleum processing facility" "strategic pipeline" "tank station" "temporary operations" "tenement" "tenement holder" "this Act" "transportation" "valve station" "vessel" "Warden" "water line" "well". 4. Declaration of low water line. 5. Application. 6. Petroleum the property of the State. 7. The Director may carry on operations. 8. Exploration for and recovery of petroleum.

PART II. ? APPLICATION OF LAWS AND ADMINISTRATION.

9. Laws of Papua New Guinea to apply. 10. Jurisdiction of courts. 11. Appointment of Director. 12. Delegation. 13. Petroleum Advisory Board. 14. Meetings of the Board. 15. Powers and duties of Board. 16. No personal liability for Board, Minister or Director.

PART III. ? PETROLEUM EXPLORATION AND DEVELOPMENT.

Division 1. ? Preliminary.

17. Graticulation of Earth's surface and constitution of blocks. 18. Prospecting licences under Torres Strait Treaty. 19. Issue of licences. 20. Reservation of blocks.

Division 2. ? Petroleum Prospecting Licences.

21. Applications for petroleum prospecting licence. 22. Form of application for petroleum prospecting licence. 23. Grant or refusal of petroleum prospecting licence.

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24. Variation of petroleum prospecting licence. 25. Rights conferred by petroleum prospecting licence. 26. Term of petroleum prospecting licence. 27. Application for extension of petroleum prospecting licence. 28. Application for extension to be in respect of reduced area. 29. Grant or refusal of extension of petroleum prospecting licence. 30. Extension of petroleum prospecting licence in respect of location. 31. Conditions of grant of petroleum prospecting licence.

Division 3. ? Discovery of Petroleum in Licence Area.

32. Discovery of petroleum to be notified. 33. Directions by Minister on discovery of petroleum. 34. Declaration of location. 35. Investigation, etc., of location. 36. Revocation of declaration of location.

Division 4. ? Petroleum Retention Licences.

37. Application for petroleum retention licence. 38. Form of application for petroleum retention licence. 39. Notification of grant of petroleum retention licence. 40. Grant or refusal of petroleum retention licence. 41. Variation of petroleum retention licence. 42. Rights conferred by petroleum retention licence. 43. Term of petroleum retention licence. 44. Application for extension of petroleum retention licence. 45. Grant or refusal of extension of petroleum retention licence. 46. Conditions of petroleum retention licence.

Division 5. ? Social Mapping and Landowner Identification Studies.

47. Social mapping and landowner identification studies.

Division 6. ? Project Consultation.

48. Development forum. 49. Matters required before development forum.

50A. Coordination of benefits for gas projects

50. Development agreement. 51. Power to sign development agreement. 52A. Coordination of development forum 52. Consultation with affected Local-level Governments and affected Provincial

Governments.

Division 7. ? Petroleum Development Licences.

53. Application for petroleum development licence. 54. Form of application for petroleum development licence

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