Papua New Guinea launches resources entity

The Papua New Guinea state-owned resources entity called Petromin has been launched by Papua New Guinea Prime Minister Michael Somare, who named Joshua Kalinoe, former government chief secretary, as its chief executive.

June 11, 2007

Rick Wilkinson
OGJ Correspondent

MELBOURNE, June 11 -- The Papua New Guinea state-owned resources entity called Petromin has been launched by Papua New Guinea Prime Minister Michael Somare, who named Joshua Kalinoe, former government chief secretary, as its chief executive.

The PNG Holdings PNG Authorization Act of 2007, which was passed at the end of March, allows Petromin to operate at arm's length from the government even though it will hold government equity in the country's mining and oil projects.

The PNG Parliament's intention is to keep Petromin away from political control and influence enabling it to make independent and professional investment decisions.

Somare said Petromin's incorporation under the Authorization Act subjected it to corporate governance and accountability laws just like any other private sector company.