Papua New Guinea

Tax exemptions, deductions, and reduced tax rates

Duty exemptions

Special economic zones offer tax exemptions, simplified regulatory procedures and infrastructure support

Papua New Guinea is benefiting from recent gas projects and the global rise in liquefied natural gas (LNG) prices, which are boosting the country’s economic prospects. To capitalise on these opportunities, it aims to double its LNG exports by 2032.

The first LNG production began in April 2014 with the PNG LNG project. Worth US$19bn and with a capacity of 6.9m tonnes per annum (Mtpa) of LNG, the project has exceeded export expectations.

Papua New Guinea is currently shifting its focus to two main LNG projects, Kumul LNG and Papua LNG, which are in the development phase. When completed, these will have a combined capacity of 5Mtpa.

Who are the key players?

Papua New Guinea’s national oil company Kumul

Petroleum plays a vital role in developing the country’s oil and gas industry. It operates several major blocks, including PRL 9, PRL 8, PRL 38 and PRL 10. Other notable operators include ExxonMobil, Horizon Oil, Oil Search, TotalEnergies, Twinza Oil Limited and Arran Energy Pty Ltd.

EICDataStream is tracking 23 active and future projects. In the last year, significant contracts have been awarded to notable projects. The joint venture (JV) between Hyundai Engineering & Construction and Japan

Gasoline Corporation secured the front-end engineering design (FEED) contract for Papua LNG. Furthermore, two FEED contracts for the Elk-Antelope Gas field were awarded to a JV between Clough Limited and TechnipFMC, as well as a JV between Daewoo Engineering & Construction, Saipem and PT Tripatra.

Papua New Guinea also aims to attract more oil exploration activity as it changes its fiscal regime for upstream projects in 2025.

Why invest?

Papua New Guinea presents compelling investment opportunities in the oil and gas sector. It is aspiring to build a liberal investment environment and encourages foreign investment with relatively few restrictions. It is rich in natural resources and has a proven track record of successful operations, making it attractive for international investors.

The country offers attractive incentives, including tax benefits, duty exemptions and access to financing options. The government also provides stability through transparent and consistent legal and regulatory systems.

Major Projects To Watch

Papua New Guinea

Elk-Antelope Gas Field

Operator: TotalEnergies

Value: US$1.5bn

Stage: FEED

Status: Contract awarded

Elk-Antelope LNG Liquefaction Project (Papua LNG)

Operator: ExxonMobil

Value: US$9bn

Stage: FEED

Status: Contract awarded

Kikori LNG Project (Kumul LNG)

Operator: Kumul Petroleum Holdings Limited (KPHL)TotalEnergies

Value: US$1.5bn

Stage: Feasibility

Status: Contract awarded

Namibia

Block 2913B Venus-1X Oil

Discovery

Value: US$500m

Startup: 2026

Project stage: Exploration

Project status: Drilling and appraisal

Operator: TotalEnergies

Block 2913A Graff Oil Field

Value: US$200m

Startup: 2026

Stage: Exploration

Status: Drilling and appraisal

Operator: Shell

Jonker-1X Oil Discovery

Value: US$200m

Startup: 2026

Stage: Exploration

Status: Drilling and appraisal

Operator: Shell and the National Petroleum Corporation of Namibia, made a notable oil discovery in the Orange Basin offshore Namibia. The Jonker-1X well, situated about 270km offshore, is a substantial find that could potentially yield more than 1bn barrels of recoverable oil. Shell has achieved a 100% success rate with the three exploration wells drilled in Block 2913A.

Namibia has drawn other oil majors including Chevron, who acquired an 80% stake in PEL 90 in the Orange Basin through a transaction with Trago Energy. Similarly, Woodside Energy has secured an exclusive option with Pancontinental to gain a 56% participation interest in PEL 87.

Why invest?

Namibia offers a favourable investment climate, welcoming foreign investors and providing a solid foundation of stable governance and infrastructure. Its legal, regulatory and accounting systems are transparent and aligned with international standards. Namibia’s financial system offers comprehensive services to support investors. The country’s competitive incentive and fiscal regime include the Foreign Investment Act, as well as special incentives for manufacturers and exporters.