AbstractI have undertaken this research because of the very fact that bad corporate decisions are having adverse effects on Papua New Guinea (PNG) State-Owned Enterprises (SOEs). The mining and petroleum sector is one of the largest contributors to Papua New Guinea’s economy in terms of financial revenue and needs effective corporate governance strategies to ensure accountability and prudent financial decision. With the existence of current mineral and petroleum projects such as the 1st and 2nd LNG Projects, Porgera Gold Mine, Ok Tedi Mining Ltd, Lihir Gold Mine, Wafi Gold Mine, etc, SOEs must effectively manage the states resource revenue. To manage the state’s revenue from mineral and petroleum projects the state relies on SOEs. These SOEs play a vital role in ensuring financial prosperity and economic stability for PNG.
This thesis examines the existing corporate structures of SOEs in the mining and
petroleum sectors of PNG and compares and contrasts these corporations with that of other countries that have proven to be successful and consider the need for reforms. The thesis adopts a broad approach to the topic of governance and treats corporate governance as a subset of governance.
In setting the context the political and economic history of PNG is examined. The PNG concept of the state, SOEs, the regulatory environment of oil and gas in PNG and ownership of minerals and petroleum are also examined. After the background information, the SOEs responsible for mineral and petroleum revenue (Kumul Minerals Holdings Limited and Kumul Petroleum Holdings Limited) corporate governance practices are identified. Areas of reform are highlighted, and the thesis draws from benchmarking countries and international governance organisations to suggest a new corporate governance structure for Kumul Minerals Holdings Limited and Kumul Petroleum Holdings Limited.
My research aims to explore avenues where corporate governance mechanisms can be effected to guard the wealth of the people of PNG. There is a great need for interinstitutional accountability to ensure that there is proper scrutiny and oversight of corporate procedures.
This research is vital as it deals with the protection of Papua New Guinea’s revenue that will be generated from mining and petroleum extraction. The abuse of this generated revenue by SOEs and individuals will have severe implications for Papua New Guinea’s economic growth. This research will propose a practical corporate structure where revenue is managed according to proven and accountable concepts and generated revenue is utilised in the sectors of education, health, infrastructure, and other priority sectors for development. Also, this research delves further into the establishment of a Sovereign Wealth Fund for Papua New Guinea’s surplus revenue to be invested and kept for future generations.
|Date of Award||2022|
|Supervisor||John Farrar (Supervisor), Louise Parsons (Supervisor) & Casey Watters (Supervisor)|