Papua N.G.
- introduction
The PNG industry's participation in its own energy assets is limited by two core
factors. Firstly, the rugged terrain makes extracting natural resources on land
extremely difficult for local firms. Secondly, the country's poverty and lack
of
a broad technical base limits the capabilities of the energy industry: the size
and technological complexity of projects means that participating in
exploration
and production is beyond the abilities of local companies.
The government's response has been to maximise the industry's involvement in
project elements which it has the ability to handle. Procurement remains a
problem,
largely because the local procurement industry is little known by international
companies.
On a broader level the country remains hampered by its reliance on subsistence
agriculture and by the continued prominence of its heterogeneous tribes (over
850
languages are spoken in the country), many of whom have inalienable land rights
written into law. Although the desire to preserve ancestral customs and systems
is noble, it has not contributed to economic development. This fragmentation is
also visible at the political level, where the plethora of parties leads to
often unstable parliamentary coalitions and frantic, sometimes violent
elections.