Papua New Guinea

Investment & Operational Criteria

Key Indicators

Risk Premia

2.500

%

Outlook

Uncertain

Rating

CC|3H|§

Ranking

81

Reserves (1P)

Total

mm boe

Oil

12

%

Summary

Investment in PNG has stalled as the future of access to LNG export facilities has hampered the commercial potential of the underlying asset bases.

Updated

June 16, 2021

Country Basics

Region

Asia - Pacific

Reserves (1P)

Oil

mm bbl

Gas

bcf

Location

Papua New GuineaPapua New Guinea

Oceania, group of islands including the eastern half of the island of New Guinea between the Coral Sea and the South Pacific Ocean, east of Indonesia

Outline

Tax Regime
Type

Concession

Tax Regime
Notes

The fiscal regime that applies in Papua New Guinea (PNG) to taxation of income derived by petroleum and gas companies consists of a combination of corporate income tax (CIT), royalties and development levies, additional profits tax (APT) and infrastructure tax credits.

Investment & 
Operational
Climate

PNG is the largest economy among the Pacific Islands and offers enormous trade and investment potential. Key investment prospects are in infrastructure development, a growing urban-based middle-class market, abundant natural resources in mining, oil and gas, forestry, and fisheries. Under the banner of “Take-Back PNG,” Prime Minister James Marape’s government endorsed a fair, open, and collective approach in its decision-making processes, especially decisions concerning the proper management of the country’s resources and investment returns. Hoping to distance itself from a history of poor business and investment trade-offs that eventually triggered the ouster of Prime Minister Peter O’Neill in May 2019, Marape also announced that the government would increase its share of revenues from the country’s resources. Under Marape, PNG reaffirmed its openness to trade and investment, is stepping up reforms to recover from high debt levels, and seeks to attract more FDI to stimulate its economy. However, the Marape Administration’s inability to reach agreement with multinational companies in the resources sector has cast a shadow over this strategy.

Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.

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Asia - Pacific

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