Ann: PDL 10 - Initiation of Arbitration Proceedings, page-38

What is the condition of the Stanley Development Licence that Minister Pok says Horizon didn't meet?

Pursuant to section 138 of the PNG Oil and Gas Act, where a licensee has not complied with:

• a condition specified in the licence;
• a direction given by the Minister for Petroleum (Minister), the person appointed as ‘the Director’ for the purposes of the Oil and Gas Act (Director) or an inspector appointed under that Act (Inspector);
• any provision of the Oil and Gas Act;
• any payment payable to him or her under the Oil and Gas Act within a period of three months after the date on which the amount become payable;
• the Minister may, by instrument, serve on the licensee:
• in the case of a tenement: suspend for such period as the Minister thinks fit or cancel the licence as to all or any of the blocks in respect of which it is in force; or
• in the case of a Pipeline Licence (PL) or a Petroleum Processing Facility Licence (PPFL) suspend for the period as the Minister thinks fit or cancel the licence as to the whole or a part of the PL or PPFL in respect of which it is in force.

The licensee must be notified of the Minister’s intention to suspend or cancel a licence and must be given time to make written submissions to the Minister as to why the licence should not be cancelled or suspended.