Oil and Gas Act 1998.

The Act consists of 190 sections divided into 5 Parts: Preliminary (I); Application of laws and administration (II); Petroleum exploration and development (III); State equity entitlement and project benefits (IV); Miscellaneous (V); Transitional provisions (VI).
For the purposes of this Act, "Papua New Guinea" includes the offshore area, i.e. the area that comprises: (a) the seabed underlying the waters (if any) between the low water line and the baseline; and (b) the seabed underlying the territorial sea; and (c) the seabed adjacent to the coast of Papua New Guinea that underlies the offshore seas to a depth not exceeding 200 meters or, beyond that limit, to a depth where the superjacent waters admit of the exploitation of the natural resources in the subsurface or on the seabed of that area. In any case where the Minister considers there is doubt as to the location of a low water line, he or she may, by notice in the National Gazette, declare the location of the line by whatever method appears to him or her to be appropriate, and the line so declared shall be the low water line (sect. 3). A Petroleum Advisory Boar is constituted under section 13. The Minister may refer to the Board for advice any question or matter relating to the administration of this Act. Sections 21 to 31 to concern the application for and granting of petroleum prospecting licences. Licences shall be granted by the Minister on advice of the Board. Section 31 defines conditions of grant of petroleum prospecting licence. Sections 32 and following regulate the discovery of petroleum in licence areas. Sections 37 and following regulate the granting, etc. of petroleum retention licences. Prior to the first grant of a licence or licences in respect of a petroleum project, the Minister shall convene a development forum pursuant to section 48. Sections 53 to 67 concern granting of petroleum development licences and related matters. An application for petroleum processing facility licence (sect. 86) shall be accompanied by particulars of environmental monitoring systems, waste disposal procedures and the results of environmental studies. The applicant for a petroleum development licence will be required to lodge a security deposit for compliance with the conditions relating to the protection and restoration of the environment (sect. 56).