Department of Petroleum & Energy (DPE)

The Department of Petroleum and Energy (DPE) is the Papua New Guinea government department responsible for policy development, regulatory oversight, and administration of the petroleum, gas, and energy sectors. DPE plays a central role in governing access to PNG’s hydrocarbon resources and shaping the country’s energy development strategy.

Mandate and Scope

DPE’s responsibilities span the full lifecycle of petroleum and energy sector activity in PNG, including:

• Development and implementation of national petroleum and energy policy
• Administration of the petroleum licensing regime
• Oversight of petroleum project agreements and compliance
• Coordination with other government agencies on resource sector governance
• Energy sector planning, including electricity generation and distribution policy

The department operates under the authority of the Minister for Petroleum and Energy and works in conjunction with other regulatory bodies including the Mineral Resources Authority and the Internal Revenue Commission on matters of resource taxation.

Petroleum Licensing Framework

Access to Papua New Guinea’s petroleum and gas resources is governed by the Oil and Gas Act 1998. The licensing framework provides for several categories of licence:

• Petroleum Prospecting Licence (PPL) — authorises exploration activities within a defined licence area
• Petroleum Retention Licence (PRL) — permits the holder to retain rights over a discovery pending commercial evaluation
• Petroleum Development Licence (PDL) — authorises the development and production of petroleum from a defined area
• Pipeline Licence — authorises the construction and operation of pipelines for the transport of petroleum

Licence applications are assessed by DPE against technical, financial, and legal criteria. The grant of a licence carries with it defined work programme obligations, reporting requirements, and compliance conditions.

Energy Sector Development

Beyond petroleum and gas, DPE is responsible for broader energy sector policy, including electricity generation, rural electrification, and the development of renewable energy sources. PNG’s energy sector presents opportunities across hydroelectric, geothermal, solar, and biomass generation, and DPE coordinates policy settings that govern investment in these areas.

LNG and Major Project Regulation

Papua New Guinea is a significant LNG exporter, and the regulatory framework for major gas projects involves DPE as the lead government department. Major project agreements — including gas agreements and associated fiscal terms — are negotiated through DPE in consultation with the State Solicitor and other relevant agencies. These agreements establish the regulatory, fiscal, and operational framework for the life of a project.

Investors considering opportunities in PNG’s petroleum, gas, or energy sectors can explore current opportunities in the Investment Pipeline or contact InvestPNG to discuss sector-specific regulatory requirements and entry pathways.