Legal Nature of the Papua New Guinea Petroleum Arrangement

[Tree]

The O&G Act is a rule book subject to specific agreements between developer and State. IOC has been performing their license obligations which in turn allows the State to grant extensions. The fact that IOC has ongoing seismic work and planned work throughout leases implies IOC had Gov't assurances of extensions and that has been IOC's position. The time to worry is if there is NO activity in leases, NOT when IOC is dumping big money into leases. Lack of activity in a lease is when the State will not be cooperative.
Some are surprised by the granting of extensions, some are not. All are pleased with the extensions.