News

Oil and Gas

PNG Business News - September 27, 2022

Kumul offers to acquire 5% of PNG LNG

Photo: Oil Search Santos advises it has received a binding conditional offer from Kumul Petroleum Holdings Limited (Kumul) to acquire a 5 per cent project interest in PNG LNG for asset value of US$1.4 billion, including a proportionate share of project finance debt of approximately US$0.3 billion (the Offer). Kumul is Papua New Guinea’s national oil and gas company and existing partner in the PNG LNG project. To secure the Offer, Kumul has paid an amount of US$55 million to Santos which will be held in escrow to be released to Santos as a deposit for part payment of the Offer price if it accepts the Offer. The Offer is conditional on Kumul obtaining the waivers of certain pre-emptive rights by each other PNG LNG project participant under the project operating agreement to allow the transaction to proceed The Offer is expressed to be irrevocable, except in limited circumstances, and will remain open for acceptance until 31 December 2022. Santos has agreed to deal exclusively with Kumul during this period regarding the sale of equity in PNG LNG. The proposed transaction will have an effective date of 31 December 2022 with Santos to retain all 2022 cash flows. Completion will be subject to customary conditions including necessary regulatory approvals and Kumul securing financing. The potential sale would increase the equity interest of the State to approximately 22 per cent supporting the PNG government objectives for the people of PNG to have a greater equity interest in the development of their natural resources. Santos Managing Director and Chief Executive Officer Kevin Gallagher said the potential sale of a 5 per cent interest in PNG LNG to Kumul represents an opportunity to build strategic alignment for the future development of PNG’s natural gas resources, including via PNG LNG infrastructure. “PNG LNG is a low-cost and low emissions intensity asset that contributes strong cash flows to the project participants and economic and social benefits to the nation,” Mr Gallagher said. “Following the transaction, Santos would maintain a 37.5 per cent interest in this world-class project. “Santos has been a committed partner in PNG for over 40 years, involved in more than 30 different licenses and has significant community partnerships and projects across the nation.” As part of the proposed transaction, Santos and Kumul will negotiate a Heads of Agreement to further collaborate on the development of Kumul’s regional capacity and capability, including carbon emission reduction opportunities to achieve net-zero operations. JB North & Co is acting as financial adviser and Allens is acting as legal adviser to Santos.   Article courtesy of Santos

Business

PNG Business News - September 26, 2022

INFLATION AFFECTING LOW INCOME EARNERS

One of the most important issues that is currently affecting lives of low-income earners in Papua New Guinea is Inflation. This vital issue needs to be seriously addressed and implemented by the new government under the leadership of Prime Minister, James Marape and his Deputy, John Rosso. Treasurer Ian Ling-Stuckey recently passed the supplementary budget of K610 million to particularly address inflation, this is good as it will ease the burden of workers who are paying tax. The supplementary budget allowed for the reduction of the current inflation rate from 10 percent to about 6.2 percent which shows a difference of 3.8 percent. When presenting the budget treasurer Ling-Stuckey said as of June 1, this year (2022) wage earners who are paying tax had received up to an extra K42.30 in their fortnightly pay packets. He highly commended this approach and said it was a significant gain to the household pay-packet of a wage earner. With the scenario of high-income earners and low-income earners in PNG, this is something that can be seen clearly as a big gap difference between these two groups. For Instance, when comparing a high earner who earns around K10, 000-K12, 000 per fortnight with a low-income earner who gets about K250-K350, it is quite easy to see that the low earner is really affected by inflation regardless of the incentives put in place by the supplementary budget. Ling-Stuckey when presenting the budget said the package will cover prices of key household commodities. He added that in April this year the Government announced the arrangement made with the Internal Revenue Commission (IRC) and local companies to lower the cost on key household items and they will be granted an equivalent reduction in tax. Unfortunately, this measure is waiting to be implemented. IRC however has clarified that the change will require some additional legislation in October to be implemented. With these measures slowly taking shape, goods and services in stores continue to rise with both basic cost of household food items and fresh produce sold in the local vegetable markets. Expenses such as Bus fare, rentals, school fees for children and hospital bills are also increasing, putting extra burden on low-income earners in the country. Ling-Stuckey when presenting the budget said the largest component of the package was removed for taxes on all retail fuel products. Even with these changes, it requires time for Public Motor Vehicles to cut down on additional fees that were charged earlier when fuel prices where high. Belden Namah recently stressed on the floor of parliament that inflation is real, and he is surprised of the impacts it has on the price of goods and services. PNG Trade Union Congress when congratulating the newly appointed Minister for Labour and Immigration, Bryan Kramer proposed a full review on the minimum wage board (MWB). Currently the MWB approved rate for a low-income earner is about K3.75 per hour but this rate is yet to be fully implemented by some organizations. Since the rate is yet to come into effect, the question still lingers on the implementation and the monitoring of this approved minimum wage rate. Are there any penalties charged to those employers who are not implementing these rates? PNG Trade Union Congress General Secretary, Clemence Kanau during a recent press conference asked if Minister Kramer could seek cabinet approval for the institution and the convention of the Minimum Wage Board to be fully reviewed. Kanau said the increasing price of goods and services is overpowering the value of a meager kina that a worker earns weekly or fortnightly, it cannot sustain the worker for the next one or two working weeks. As it is now the low-income earners of the country are being greatly affected by this dilemma and left to struggle at will. Effects of this Inflation is also said to be a global crisis arising from factors such as COVID-19 and the Ukraine-Russian War, but it is not good for PNG as we are struggling economically and have about K160 billion in debts to be repaid. So, if the Government is serious in taking back PNG and making it the richest black nation, it has to take a bold stance to address inflation and hopefully the reviewing of the Minimum Wage Board (MWB) could also be considered.

Energy

Paul Oeka - September 26, 2022

Summit Reaffirms Growth in PNG’s Energy Sector

The three-day Papua New Guinea Energy Summit and Exhibition that ended last week focused on strengthening coordination roles among stakeholders and industry players by promoting government and private sector engagement to improve and reaffirm the huge potential of PNG’s Energy Sector. This was the first time the summit was mainly dominated and driven by the Energy division. The summit highlighted the challenges and factors that could determine the right pathway for PNG’s Energy sector to align its direction and leadership priorities. Facilitated by Kumul Petroleum Holdings Limited, the summit was regarded as a momentous occasion to identify key challenges and opportunities for addressing, improving, and accessing the Energy sector in the country. Kumul Petroleum Holdings Ltd. Managing Director, Wapu Sonk, stated in his closing remarks that he was quite pleased with the topics and issues discussed and highlighted throughout the summit, mostly in development and investment opportunities regarding the energy sector. “It was always about mining and petroleum, and now it is time to focus more on energy because energy is the future for development in the country,” said Mr. Sonk. Participants at the summit included heads of departments, development partners, the private sector, institutions, civil society organizations, potential investors, and individuals. With up to 30 exhibition booths that consisted of different organizations and stakeholders in the Energy sector, the summit was commended as an exciting experience in terms of networking and showcasing their products and services. Climate change was also a big topic discussed at the summit regarding PNG’s vulnerability to climate change ramifications. This was stated by key speakers as being a global concern, but PNG must be aligned with climate change adaptations and mitigation while at the same time looking at developing its domestic energy policy. During the summit, discussions also indicated that investors and service providers were taking proactive steps to venture into areas within the energy sector where the government’s attitude and approach were restricted by policy guidelines. The sentiments shared by Mr. Sonk during his closing remarks also indicated the lack of government participation. Mr. Sonk said: “My biggest regret is that the government must sit in such summits and attend to discussions and take note of how policy should be implemented and where the industry is headed.” The summit was endorsed by the Ministry of Petroleum and Energy and financially and technically supported by KPHL, Exxon Mobil, Santos, Total Energies, MRDC, Twinza, Vodafone, ANZ, High Arctic Energy Services, JX Nippon Oil & Energy, Kina Bank, and Puma Energy. In closing the summit, Mr. Sonk said: “I hope the next energy summit will be much bigger and I each and every one of you who has traveled into the country or are residents here for attending.”

Business

Paul Oeka - September 26, 2022

GOV’T ‘WELL PREPARED’ FOR BETTER SERVICE: ROSSO

On Papua New Guinea’s Independence Day last Sept. 16, Acting Prime Minister John Rosso assured heads of government, departmental heads, the diplomatic corps, and the country that the government is better and well prepared to deliver services to the people. During his inaugural independence speech as Acting Prime Minister, Mr. Rosso said: “We are not the new government. We are a continuing government that is better prepared and in the right position to effectively coordinate and deliver on development priorities in the next five years.” He was speaking on behalf of Prime Minister James Marape and Governor General Sir Bob Dadae, who were in London to condole with King Charles III following the death of Queen Elizabeth II. Mr. Rosso added: “This government is now more targeted and focused on critical areas of economic growth that will bring development to all of us.” “The 2019 Loloata outcome continues to serve as the blueprint and guideline for targeted sectorial reforms by aligning them with overall development policies and plans,” he said. Mr. Rosso stated: “We cannot just keep talking about concepts. We already have some good policies in place and what we need is total and equitable commitment and hard work to implement existing policies to achieve industrialization and economic growth for our people.” “Most of these policy concepts are in line with the recent government restructure, which included the creation of new ministries, which are International Trade and Investment, Livestock, Oil Palm and Coffee.” Mr. Rosso said: “We are looking at restructures that can reform and harness the potential of various sectors such as renewable resources and non-renewable resources that have been dormant for the last 46 years. Our people must also be included and empowered to be participants in ensuring economic growth.” “No one will do this for our people, we must do this for our children and our future. Let us all build Papua New Guinea together, this effort will include collaboration from the public and private sector, Businesses, farmers, and ordinary citizens throughout the country to play their individual roles,” he explained. “For many years, the government’s focus has been on non-renewable resources, especially the extractive industry, which can be depleted and only serves 10 percent of the economy,” Mr. Rosso said. “The government is now giving equal attention to renewable resources, which mainly serve 80 percent of our rural population. In doing so, the rural population can be meaningfully engaged in the agricultural sector to sustain themselves.”

Energy

Paul Oeka - September 26, 2022

National Energy Authority to support stakeholders within Energy Industry

The recently established National Energy Authority was one of the major participants of the PNG Energy Summit and Exhibition 2022. NEA’s Acting Managing Director, Mr. Ronald Maketa said the highlight of the NEA is to support the National Governments Energy Policy and its stakeholders to realize the potential of PNG’s Energy industry. He stated during his speech that “We want to improve access to this (Energy) sector by having the right regulatory reforms for foreign direct investment by engaging with stakeholders to find the right approach for the direction of the Government” “Investors must have confidence in the government, coordination by the government has been lacking in the energy sector for the last 40 years”. He said. He added that “Renewable resources such as Geothermal and hydro energy are becoming huge potentials that is why we are aligning our development policies with the Connect PNG Infrastructure program. We want to open up small power systems in provinces and small centers so independent power producers and investors can come in” The government already has an Energy policy in place, the role of the policy is to set the pace for service delivery in the energy sector. The implementers of this policy will be the Petroleum and Energy ministry and the National Energy Authority, the two are working closely with industry players and stakeholders to see that the policy is effective and is putting out desired outcomes. Explained Maketa. Apart from this he further stated that there is a global demand for energy so policy has to be allowed to be shifted to consider this changing dimensions. Reliability and affordability should be prioritized for key areas such as Renewable resources in the energy sector this may include Solar, Hydro, and Wind and Geothermal energy. The country is blessed with a lot of rivers and waterfalls to use for this form of Energy, this has huge potential to create opportunities for investment. Energy for domestic use must also be considered, Oil and gas can be expensive even though we are producing it. We must teach ourselves to use clean energy in order to improve ourselves.

Oil and Gas

PNG Business News - September 26, 2022

Pasca A Project to Transform Energy Sector and to Promote Sustainable Growth

The Pasca A offshore gas project in the Gulf of Papua will focus to help transform the PNG energy sector and to boost sustainable growth in the country. Twinza Oil (PNG) Limited chairman, Stephen Quantrill said when in full production, the Pasca A Liquefied Petroleum Gas (LPG) project’s landed prices will be lower than the current LPG imports. He said that as a benefit to PNG once the project starts, Pasca A has pledged a 10% domestic market obligation (DMO). According to Mr. Quantrill, the promise is in line with PNG's goals for sustainable development, which include achieving complete carbon neutrality by 2050 and a 70% electrification objective by 2030. He asserted that accessible LPG might revolutionise the PNG energy industry and support long-term development. “The advantage of the LPG includes a low carbon substitute for burning fuel, oil and diesel, and it is profitable and affordable by land and marine transport system,” Mr Quantrill said. “It requires a low infrastructure investment to reach in diesel and is very accessible.” According to Mr. Quantrill, the Pasca A LPG component is a crucial commodity for providing energy to PNG. According to him, the project's schedule will allow PNG to reach its goal of providing 2% of the world's LNG supply. The PNG government consented to the parameters of the Pasca A project in 2021, and more investment and project funding are still required for the gas agreement and petroleum development licence (PDL). Once it is up and running, the Pasca A project will bring in K8.6 billion in income for PNG over the course of its existence, with K500 million per year. Additionally, the project will generate K18 billion in GDP throughout its lifetime, K400 million in local spending, 300 construction employment, and 500 permanent jobs in PNG as the yearly operating cost in the country.   Reference: Wohi, Lorraine. Post-Courier (26 September 2022). “Pasca A Project To Assist Transform Energy Sector”.

Energy

PNG Business News - September 26, 2022

Maru: Sowom Hydro Project to be PNG Government's Priority

Photo credit: Papua New Guinea Today According to Richard Maru, the Minister for Trade and Investment, high electricity costs are a significant barrier to trade and investment in Papua New Guinea (PNG). With approximately 13% of the population having access to electricity, PNG is one of the least electrified nations in the world due to its inconsistent, costly, and limited supply of energy. “We continue to rely on the expensive diesel generators when we have vast cheaper and cleaner energy options available- the rivers (for hydro projects) and the sun (for solar farms),” said Minister Maru. After speaking with a team from the Snowy Mountains Engineering Corporation (SMEC) regarding a feasibility study into the Sowom Hydro Project in East Sepik Province, Minister Maru brought up this issue. The possibility of the hydro project along the Sowom River was investigated by SMEC in a preliminary high-level feasibility assessment in 2014. “The Marape-Rosso Government is keen to have a full feasibility study done on the viability of one or two hydro projects along the Sowom River,” said Minister Maru. Currently, diesel generators at Wewak and Maprik supply the approximately 10 megawatts of energy needed in the East Sepik Province. “It is difficult to attract major investment projects in East Sepik Province without reliable and cheaper power. The Greater Sepik Region cannot continue to depend on expensive diesel generators for electricity,” said Minister Maru. In order to conduct a thorough feasibility assessment on the Sowom Hydro Project, Minister Maru asked SMEC to put up a proposal and a costing. Before the year is up, he wants the Feasibility Study to be finished. “I have briefed the Governor of East Sepik Province on this study, and he is very supportive. The availability of cheap and reliable electricity is one of the highest challenges for the entire Greater Sepik Region which must be solved before the region can market itself as a serious investment destination, along with other provinces like Manus, Gulf, West Sepik, and New Ireland who continue to depend on very expensive diesel-fired generators. A combination of hydro, solar energy, and gas-fired electricity supply is the way to go for these provinces,” said Minister Maru. In order to develop a more affordable and dependable electricity supply to support economic growth and provide cheaper and more accessible electricity to the majority of the population in the country, Minister Maru stated that he will be working closely with the leaders from other provinces and districts across the nation. “This will also be a major business opportunity to the landowners of the lands where such projects will be located in,” he said.   Reference: Papua New Guinea Today (20 September 2022). “Sowom Hydro Project to be PNG Government's Priority : Maru”.

Business

PNG Business News - September 26, 2022

PNG International Trade and Investment Minister Richard Maru visits Japan

Picture: Minister for International Trade and Investment, Hon. Richard Maru and the Chief Trade Officer from the National Trade Office, Mr. Richard Yakam in Tokyo, Japan Papua New Guinea Minister for International Trade and Investment,  Richard arrived in Tokyo, Japan over the weekend as part of the delegation who will be representing Papua New Guinea at the Funeral of Former Prime Minister of Japan, Late Shinzo Abe which will be held on Tuesday, September 27, 2022. In addition to his 2018 APEC tour, the late Mr. Abe also paid a three-day bilateral visit to Papua New Guinea in 2014, during which he visited the Peace Park in Wewak, East Sepik. Late Mr. Abe was referred to be a "Great Leader" by Minister Maru. “I am really sad to hear about his passing and how he passed on,” said Minister Maru. “I treasure the two meetings with him that I attended both in his office in Tokyo and during his visit to Wewak,” he said. While in Tokyo, Minister Maru will also take advantage of the chance to meet with the Japanese Ministry of Trade to discuss ways that Papua New Guinea and Japan can strengthen their partnership in terms of trade, investment, and other areas of cooperation. This will include more trade, particularly in the fields of forestry, coffee, and cocoa exports to Japan. “Japan is one of the most important trading partners that we’ve had for a very long time, and we highly value this relationship that we have,” said Minister Maru. With a clear mission to attract greater foreign investment from Japan into Papua New Guinea, Minister Maru and the Prime Minister will also be engaging with current and potential investors in Japan. In order to have the first bilateral trade negotiations with the trade ministers of these two nations as well as possible investors there, Minister Maru will be returning to Papua New Guinea via Singapore and the Philippines. His top objective will be to speak with prospective investors for the primary and downstream processing of rice and other agricultural goods. Additionally, he would look for greater technical assistance for the Securities Commission and the Special Economic Zone Authority.   Reference: Papua New Guinea Today (25 September 2022). “PNG International Trade and Investment Minister Richard Maru visits Japan”.

Agriculture

PNG Business News - September 26, 2022

Empowering Rural Women and Youths in Papua New Guinea on Group Leadership & Agri-Business Management

Photo: EU-STREIT PNG addresses gender-based violence and its subsequent negative impact on inclusive participation and transformational change in seven remote villages in Sandaun Province A 5-day intensive training workshop on establishing and organising agri-business groups, with a focus on Group Leadership and Business Management skills, was recently organised by the Food and Agriculture Organization of the United Nations (FAO), under EU-STREIT PNG Programme, for 70 cluster group leaders inclusive of women and potential youth leaders from seven villages in West Aitape Local Level Government, Sandaun Province. The workshop also focused on raising awareness on Gender-Based Violence (GBV) among cocoa, vanilla and fisheries farming communities. The venue for the training was Marubian Village (Ulau 2), located along the tropical west coastline of Aitape. Lack of knowledge and skills in leadership, particularly among rural women and youth, prevents villagers from partaking equally in decision-making at the executive level of farmer groups. With this insight, the farmers were also trained on how to establish and manage their cooperatives in a gender-sensitive manner.  The first sessions, focused on the importance of mainstreaming gender and youth perspectives and addressed issues of gender-based violence within the three targeted value chains. The sharing of household roles and responsibilities to allow for additional time to contribute positively in farming activities for quality and quantity production, the gender constraints in the value chain development as well as valuing everyone’s inputs by family members for appropriate reward and respect were some of the issues discussed. It was the first time that the villagers were learning about shared gender roles in contrast to some existing cultural norms. Through group discussions, participants came to realise how the sharing of household workload could   improve their lives as well as their farming output. "Everything begins in the house. As long as we share responsibilities within the house, we can save time and be more productive on the farms," explained Ms Patu Shang, Programme's Gender and Youth Inclusion Specialist. The sessions, filled with dynamic interactions, group discussions and presentations, provided an opportunity for mothers and girls whose efforts and contribution have hitherto not been appreciated, to speak out. "This group gathering is a window for these mothers to say yes they can speak and not to remain silent and likewise for youths to see life in a positive way," said Mrs Angela Passingan, Chairlady of BAMA Womens' Group who organised the mothers in the village to collaborate with EU-STREIT PNG Programme for this learning opportunity. The women's group comprises mostly single mothers, including widows, and they invited female and male youths in the community to join them. This opportunity equally helped this group to build its organisational capacity. "I believe this training will help us in many ways. Once we can fix our homes in terms of sharing gender responsibilities, we can manage other aspects of our lives like farming cocoa and vanilla," added Mr Joseph Sarinu, Ward 29 Member. The sessions on farmer group leadership with a business approach helped boost women and youths' confidence to take up leadership roles. Some key contents covered include Benefits of Cooperative Ownership, Understanding Regulatory Compliances, Goals Setting & Action Planning, Roles of Leaders/Members in Cooperatives, and Understanding the Organisational Structure of Cooperatives. The importance of working in groups to take part in agribusiness in cocoa, vanilla and fisheries value chains was also shared and discussed. Involving women and youths in active dialogues is necessary in this regard. "This training has clarified my thoughts that my sister has a right to be consulted in decision-making and participation in our farmer group we want to run in our community," said a 25-year-old male youth Jason Kagum. The EU-STREIT PNG, being implemented as a United Nations Joint Programme (FAO as the leading agency, and ILO, ITU, UNCDF and UNDP as implementing partners), is the largest grant-funded Programme of the European Union in the country and the Pacific region. The Programme focuses on increasing sustainable and inclusive economic development of rural areas through increasing the economic returns and opportunities from cocoa, vanilla and fishery value chains and strengthening and improving the efficiency of value chain enablers including the business environment and supporting sustainable, climate-resilient transport and energy infrastructure development. 

Business

PNG Business News - September 26, 2022

PM MARAPE CONCLUDES 77th SESSION OF UNGA MEETINGS IN NEW YORK

Photo credit: James Marape News Page Prime Minister James Marape was pleased with the outcomes of the engagement of Pacific Leaders with the United Nations Secretary-General, Antonio Guterres and the General Assembly 77th session General Debate. Prime Minister Marape recently attended his final meeting at the United Nations General Assembly annual world leaders dialogue, where he joined his fellow Pacific Islands Forum colleague leaders, for a meeting with the United Nations Secretary-General Antonio Guterres that lasted nearly an hour. This is an annual meeting that takes place at the margins of the General Debate of the General Assembly. This session was the first in-person leaders meeting since the COVID-19 pandemic outbreak. Prime Minister Marape joined the Forum Chair, Fiji Prime Minister Frank Bainimarama and also the President of the Federated States of Micronesia, and the Prime Ministers of New Zealand, Samoa, Tonga, Solomon Islands, Tuvalu and Vanuatu and other representatives of the Forum Members. They were joined by the Forum Secretary-General Henry Puna. The meeting, prior to its opening, had a moment of silence in honour of Forum Leaders that have passed on since the last in-person meeting, as well as paid respect to Forum members affected by COVID-19 and recent natural disasters, including the devastating earthquake in Papua New Guinea. The Forum Chair and the Prime Ministers of Samoa, Vanuatu and Forum Secretary-General spoke on behalf of the Forum members. Fiji provided an overview of the Forum’s work since last year, whilst Samoa spoke to the economic challenges and support to Small Island Developing States (SIDs) - COVID-19 response and recovery, food and fuel crises, technology and connectivity, reforms to the international financial architecture; Vanuatu spoke on climate change agenda whereas Federated States of Micronesia (FSM) addressed the global and regional landscape, Pacific regionalism and 2050 Strategy for the Blue Pacific Continent. Overall, the Forum leaders underscored the Pacific region’s strong united stance under the 2050 Strategy for the Blue Pacific Continent, in taking all necessary measures in the climate-ocean nexus and in the post-COVID-19 pandemic efforts to protect Pacific peoples, communities and way of live and their willingness to work in partnerships with international development partners to address the priorities of the region. In his address to the Forum Leaders the UN Secretary-General was candid in expressing his serious and growing concerns with the state of the world, where he noted it was in “turmoil” from the multiple crisis related to “climate and energy, hunger and poverty to conflicts and war and above all, a fear that worse is yet to come." He underscored his pain of seeing the Pacific countries and others in the “frontlines of climate chaos and paying the highest price yet they did not create this crisis”. The Secretary-General strongly lauded the powerful, consistent, and united voice of the Pacific urging climate action at a scale commensurate with the scope of the challenge. “I share your concerns that we are off track from the goals of the Paris Agreement. “At a time when we should be urgently accelerating actions, we are backtracking and finger pointing," said the Secretary-General. The UN Secretary-General was even more blunt, stating that “the world is not making enough progress. Not even close: Not on emission cuts that could keep the 1.5 degrees goal within reach. Not on scaling finance for adaptation. And not on loss and damage". He, however, implored Forum leaders “not to lose hope". “Instead, I ask you to raise your voices even more loudly. We need the strong moral voice and leadership of the Pacific to impel everyone – especially G20 countries who account for 80% of global emissions – to take urgent actions," said the Secretary-General. He also called for major carbon emitters to phase out fossil fuels; turbocharge a renewables revolution; meet finance commitments in full – on the $100 billion and on collectively doubling adaptation finance to $40 billion a year; ensure that countries that need it most have access to that finance; and scale up finance for the burning issue of loss and damage. The UN Secretary-General also highlighted his concerns over the continuing aftermath of the COVID-19 pandemic, noting that “Small Island Developing States have one of the steepest hills to climb, confronted by years of lost tourism revenue, fractured supply chains, and disrupted transport and communication, which is further compounded by the food and fuel crisis arising from the war in Ukraine that has resulted into a “global cost of living crisis". The Secretary-General encouraged Forum leaders to invest in resilience and preparedness, in health and education; and in infrastructure and decent jobs, as a way to respond to the multiple crisis involved but also recognizes the serious unfair and unequal access to the financial and other resources needed to support them address issues of debt relief and to enable fiscal capacity to save lives and livelihoods and invest in the future and therefore called for reforms in this area at the global financial and other such institutions. He particularly welcomed and commended the Forum Leaders’ efforts for developing and launching the 2050 Strategy for the Blue Pacific Continent and leadership on the Small Island Developing States Multidimensional Vulnerability Index (MVI) for improved eligibility for concessional finance. “Together, the 2050 Strategy and the 2030 Agenda for Sustainable Development are our blueprints for the future we want and need," said the UN Secretary-General. He further underscored that “the United Nations is proud to stand with you in partnership and solidarity as we work together to make this future a reality across the Pacific and the world”. It was pleasing to also note the Secretary-General’s commitment to form a team to work closely together with the Forum members on issues of mutual interest. The Secretary-General also welcomed Forum members recent commitment to the revitalisation of the Pacific Leaders Gender Equality Declaration. He added that “whatever the challenge we face, there can be no successful response without increasing women’s political, social, and economic participation". Prime Minister Marape said that he is extremely pleased that the views of the UN Secretary-General are exactly alike, as I had articulated yesterday (Thursday 22nd September, 2022 New York Time) in his General Debate Statement delivered to the UN General Assembly on behalf of our country. “The bold message to the Forum leaders from the UN Secretary-General that “your fight is my fight and your people are my people” was most welcomed and heartening and I look forward to working closely with my fellow Forum leaders and our people and governments with the UN Secretary-General, going forward. “I know that more work lies ahead of us at the country-level and as a Pacific region but I am satisfied with the level of engagement with the UN Secretary-General and at the United Nations General Debate session as we continue to make important strides to ensure that our national and regional interests are fostered globally and more importantly to garner the necessary support we need to implement effectively our development priorities to take our country forward in the right direction," said Prime Minister Marape. Prime Minister Marape concluded the meetings on Friday 23rd September 2022, New York time before departing for Brisbane, Australia where he will meet up with his Australian counterpart Anthony Albanese where the two leaders will together attend the funeral of former Japanese Prime Minister late Shinzo Abe in Tokyo on September 27th.   Article courtesy of James Marape News Page

Business

PNG Business News - September 26, 2022

PM MARAPE SAYS PNG CAN BECOME FOOD SUPPLIER TO THE WORLD

Prime Minister Hon. James Marape says Papua New Guinea can become a food supplier to the world with its abundance of land and sea. PM Marape, when addressing the 77th United Nations General Assembly (UNGA) in New York on Friday (April 23, 2022), invited new international development partners to work with PNG in the agriculture sector, particularly in downstream processing. Earlier in the week, UN Secretary-General António Guterres, when addressing the UNGA, talked about the emerging world food crisis as a direct result of the Russia-Ukraine war. PM Marape said many parts of the world were facing food insecurity, hunger and poverty and PNG could be a country of food production. He said PNG’s people lived in a land mass of 462,840 square km and also had a large sea area which supplied tuna to Asia and Europe. “PNG has enough land, sea and people to be a food supplier to the world, Mr Secretary-General, in response to your concerns for global food security,” PM Marape said. “For the first time, in our country, my Government has inserted efforts to address this imminent problem by placing more emphasis on the agriculture sector. “This is viewed not only as a revenue source for our economy, but also a conduit to empower the majority of our rural communities through introduction of innovative farming methods in cash crop production, livestock and poultry to take ownership and leadership of their development needs, and livelihoods, and at the same time also foster poverty alleviation and food security. “It is from this perspective that we have established new ministerial portfolios for Oil Palm, Coffee and Livestock. “That will assist us cater better not only for needs of the majority of our rural communities and their local economies to be integrated into the national and global markets, to improve their lives and livelihood but be the source for food security, and hunger and poverty alleviation for other countries. “We therefore welcome new international development partners to work with us in the agriculture sector, particularly in the downstream processing of products that add value and support local communities and the country.”   Article courtesy of James Marape News Page

Energy

PNG Business News - September 26, 2022

National Energy Authority to be fully operational by 2025

Photo credit: Ronald Meketa LinkedIn Page The National Energy Authority has been in the transition for the last two years and is set to be fully operational by 2025. The NEA is planning to conduct its consultation workshop with intergovernmental agencies to guarantee they are fully functioning in three years, according to interim managing director Ronald Meketa. He stated that the tiny power system and having the appropriate policies in place will now be the NEA's main priorities. “We want to have PNG Power Ltd to be more focused on the main key grids that are a revenue-generating business for them, including Port Moresby, Highlands (Ramu Grid), and Gazelle in East New Britain,” he said. “We already have the key draft policy in place. “We should be running the consultative workshop with intergovernmental agencies to make sure we are operational in three years’ time. “We want to open up the small power system in small centres so the free independent power producers investors who are interested can come in. “We can open up the market for competition in that space and that will be embedded in some of the reviews we are doing.” Given that more power system businesses are operating within the 10km zone, Mr. Maketa stated that they would also be looking at the definition of a 10km main grid from the off-grid location. “We will look at how we can improve in that space and open up opportunities as there is a need to address the reliability issues that we have,” he said. Mr. Maketa acknowledged that there is still more to be done to advance the industry. “We should have the small power system regulation up and running by year-end, hopefully in the next energy session will have good answers for everyone,” he said. Given the dire circumstances the nation is in, he said it is critical that various energy sources invest in infrastructure. “We can have the independent power producers and allow competition in that space so that it gives ample time for PNG to look at its transformation strategies and to participate meaningfully in the transitional and to go into gas power,” he said.He claimed that the National Electricity Administration (NE as the National Development Bank, the World Bank, and others.   Reference: Wohi, Lorraine. Post-Courier (22 September 2022). “National Energy Autority To Be Operational By 2025”.

Oil and Gas

PNG Business News - September 26, 2022

Santos Has Paid K1.21B Since Merger

Photo credit: PNG Energy Summit - Wayne Kasou Santos has paid more than K1.21 billion in corporate tax since the merger, despite the current focus of considerable discussion on multinational corporations in the extractive industry to pay their taxes. A further K43.2million was also paid as direct taxes as an operator in the country. At the recent PNG Energy Summit 2022, Santos Senior Vice President for Stakeholder Management, Wayne Kasou, stated that the Group has also contributed more than K20.6 million in royalties, K10 million in development levies, K1.6 million in community development and social investment, K1.1 million in education support for landowner scholarships, K300,000 in community development programmes, and K1.3 million for sustainability projects. In his presentation of the company's update, Mr. Kasou claims that the merger was advantageous for Santos and its shareholders, particularly at a time when oil and LNG prices were much higher owing to the improvement in the world's energy demand. The 1000th export shipment of the Kutubu Oil Blend from the Kumul Marine Terminal in April, he added, was a significant achievement for the firm in 2022 and was made possible by a proud and committed team that consistently ensured there were no production interruptions. With the effective shutdown of major regular maintenance in Kutubu without any casualties, another significant milestone was also reached. The highest safety records in the company's history helped achieve this despite the backdrop of COVID-19 limitations, and in August, the PNG operations produced the most at a rate of 119-kilo barrels of oil equivalent per day. In commending the employees and contractors Mr. Kasou said, “Our employees and contractors who remained focused throughout the merger and integration activities. “Their resilience, courage, and ability to respond to change have resulted in the phenomenal results seen so far in terms of profit, safety, and production. “This was achieved against a backdrop of uncertainty, two years of COVID-19 lockdowns and restrictions, a year earlier – the 7.5 magnitude earthquake that severely impacted our local communities and operations, the changes in previous management, and recently, a merger.” The value that the PNG company has provided to the entire Santos organisation as well as the nation, according to Mr. Kasou, is deserving of celebration. “At Santos’ half-yearly announcement, PNG contributed 50 per cent of the value to the wider group. Our people are our greatest success story, and I am proud to recognise the team,” he said.   Reference: Yafoi, Melisha. Post-Courier (23 September 2022). “Santos Invests In PNG”.​​​​

Business

PNG Business News - September 26, 2022

PNG To Attend Indonesian Trade Expo

To show its commitment to a trade deal with Indonesia, PNG will, according to International Trade and Investment Minister Richard Maru, attend the Trade Expo Indonesia (TEI) 2022, which will be held next month. Maru said it was appropriate given a recent declaration to make commerce with Indonesia a priority and that he had received an official invitation to lead a Papua New Guinea (PNG) trade mission to the exhibition in Jakarta from October 19–23. With more than 1,000 exhibitors and more than US$6 billion (about K20.62 billion) in transactions over its seven zones of exposition, TEI draws around 40,000 people from all over the world each year. Manufacturing, healthcare, beauty, home furnishings, food and drink, clothing and accessories, medical equipment, and digital and services are a few of them. Andriana Supandy, the ambassador of Indonesia to Papua New Guinea, extended an invitation to Maru. Maru stated that his office would seek funding to send a sizable delegation that would include ministers, lawmakers, representatives of SMEs, state-owned companies, the business community, as well as individuals from the border provinces of East Sepik, West Sepik, and Western, as well as individuals from other provinces, industries, and organisations. He said that it would be a wonderful chance to establish interpersonal and commercial relationships. “We want to show you our commitment by going there right after our policy pronouncements.”   Reference The National (15 September 2022). “PNG to attend trade expo in Indonesia”. 

Agriculture

PNG Business News - September 26, 2022

Industry Standards Crucial, Says Oil Palm Minister

Best industry practises and certification standards, according to OIL Palm Minister Francis Maneke, are crucial for both the agriculture sector and the oil palm business. Maneke said that it will make agriculture more sustainable and continue to boost the economy during a sector meeting on Monday in Port Moresby. He complimented the government for designating oil palm, coffee, and cattle as the ministerial responsibilities for those particular agricultural products. “For oil palm, it is a total revolution for this country – the standards, certifications in oil palm,” he said. “The product is certified under the RSPO (Roundtable on Sustainable Palm Oil), so we must sustain the best practices with respect to the certification standards. “The certification of our products going out of the country must be an agenda from now onwards. “We must have standard technology in the way we do business in agriculture.” It is a top priority to revise the Oil Palm Industry Corporation Act (1992), and two bills are prepared to be introduced in Parliament. “In the oil palm Industry, we must reduce poverty level because there is so much land, yet our people are still poor,” Maneke said. “The industry is already 40 years old (but) there has never been any improvement in the poverty status of oil palm growers. “There is no regulation that defines properly the management of the industry.   Reference: The National (15 September 2022). “Sustainability in agro sector vital”.

Mining

PNG Business News - September 26, 2022

MRA to Continue Mining Control System

Photo credit: Post Courier - Mineral Resources Authority Managing Director Jerry Garry Mineral Resources Authority will continue its significant assignment in putting in place the Mining Control System for other operating mines in the country in the next six months. The project will continue, according to MRA managing director Jerry Garry, with the attention of mining minister Sir Ano Pala. According to Mr. Garry, MRA will upload all of the modern processing control systems in the mines over the next six months. This would enable MRA to monitor operations across the whole nation from a single MRA street known as the MRA data centre. The Mining Act Amendments of 1992 allowed MRA to successfully install the Ok Tedi advanced control system into MRA. The advanced control system will also be monitored at other active mines, including Lihir, Ramu Nickel, Kainantu, and Simberi. According to Mr. Garry, the initiative was established to allay concerns about the mining industry, which has existed since the founding of Bougainville Copper. “People seem to be saying that the state has no visibility to how much copper and gold is produced in every mine across our land,” he said. “The advanced control system allows for MRA to monitor every second the rocks that are coming to the processing plant and as it goes out through the tailings. “We will be looking at how many tonnes of rocks are coming in, how many metals are extracted by the system, and how much has been reported by tailings for rubbish. “We will also have cameras monitoring the specific areas of operations. “It could be the first of its kind anywhere in the world where the state has the visibility on how much copper and gold it produced within the jurisdiction.” MRA is also considering obtaining technologies to examine the deep deposits of copper and gold that are 500 metres below the surface. However, the apparatus required to carry out this activity is expensive, and MRA will shortly buy one. MRA will be able to test for the deeply buried bodies of minerals, according to Mr. Garry, once the equipment is delivered. “Once we detect those structures and the body, it will open up new front of exploration across the country,” he said.   Reference: Wohi, Lorraine. Post-Courier (20 September 2022). “MRA Keen On Continuing Project”. ​​​​

Mining

PNG Business News - September 26, 2022

Mining Industry Welcomes New Minister

Photo credit: Sir Ano Pala Facebook Page Sir Ano Pala, Minister for Mining, has been warmly welcomed as the new Minister to steer the sector for the next five years. The Ministry greeted Sir Ano as someone who will lead the sector moving ahead in the next legislative term because of his expertise and insight. Sir Ano has made it clear that he doesn't want to be involved in or get in the way of all the difficult work that technical people undertake; instead, he wants to be in a position to lead, direct, and make decisions based on suggestions and recommendations from the appropriate ministerial organisations. During the handover-takeover event in Port Moresby, Sir Ano informed members of the Mining Ministry, including the key stakeholders in the sector. Harry Kore, secretary of the Department of Mineral Policy and Geohazard Management, stated that the Ministry is prepared to carry out all the technical tasks Sir Ano specified in the public's best interest. According to Mr. Kore, the Ministry has been given three significant tasks to complete regarding Porgera, Wafi-Golpu, and the Mining Act. Given the damage caused by the recent earthquake and landslide, the Department of Mineral Policy and Geohazards Management (DMPGM) has also been entrusted with conducting assessments in Morobe, Goroka, and Kainantu. The DMPGM will offer the Prime Minister a detailed brief in the next week. Johnson Tuke, the departing minister for mining, received praise as well for his work during his stint there. The Wafi-Golpu Memorandum of Understanding, the changes to the Mining Act 1992, and the Alluvial Mining Policy that was enacted in Parliament last year under Mr. Tuke's leadership were all recognised for their contributions by Mr. Tuke. According to Jerry Garry, managing director of the Mineral Resources Authority, the Ministry has advanced significantly under Mr. Tuke's direction. When the Marape-Basil administration took office, Mr. Tuke praised the Ministry for the assistance they had given him as well as the government for giving him the authority to head the sector.   Reference: Wohi, Lorraine. Post-Courier (20 September 2022). “Mining Ministry Welcomes New Minister”.  

Business

PNG Business News - September 26, 2022

PNG, Australia Discuss Labour Mobility Scheme

The potential benefits of an extended labour mobility programme between the two countries have been emphasised by Treasurer Ian Ling-Stuckey and his Australian colleague Jim Chalmers. The doors would be open through Australia's recently expanded labour mobility policies, according to Mr. Ling-Stuckey, if people in PNG opted to travel and fill some of those jobs. The Australian Treasurer has acknowledged the labour shortages confronting Australia. “I agreed strongly, noting how we have started expanding our labour mobility program rapidly. Under the former PNG administration, there had been only around 120 workers each year. Post COVID-19 border barriers, the number had already increased by over 500 per cent to 750,” Mr Ling-Stuckey said. “I indicated to the Australian Treasurer that I recently had very positive discussions with the labour mobility area of the Australian Department of Foreign Affairs and the Gold Coast Hospital and there is a clear interest in continuing the schemes’ rapid expansion. “There is a need to evolve our management arrangements for a larger scheme, ensuring continued protection for our workers pay and conditions. This is indeed a very positive area for expanding our relationship. “The potential economic importance of a greatly expanded labour mobility program is often underestimated in PNG. Based on World Bank data showing that employees earn an average take-home wage of about K26,000, having 30,000 Papua New Guineans in Australia would be comparable to exporting K800 million worth of logs. “Having 45,000 workers (so only about 1 per cent of our workforce) would be equivalent to the entire Australian bilateral aid program of over K1.1 billion last year. Labour mobility schemes clearly have massive potential to modernise the PNG economy and lift our skills development, jobs and incomes.” The Marape-Rosso Government, according to him, is continuing to talk about ways to widen the scope of economic benefits for both parties. “Further meetings are occurring with officials from the Australian Treasury and Department of Foreign Affairs,” Mr Ling-Stuckey said. “There is lots of hard work ahead to convert the promise into a reality. I thank the many members of parliament and other workers that have already been supporting this initiative, along with the individual workers, their families and communities, and our valued Australian employers. I am proud of this plan to grow the economy, create jobs and incomes for our people.”   Reference: Post-Courier (20 September 2022). “PNG, Aust Treasurers Discuss On Labour Mobility Growth”.

Energy

PNG Business News - September 26, 2022

Dirio’s Next Project to Deliver 66 MW to the Ramu Grid

Photo credit: MRDC Dirio Gas and Power’s next project will be to supply 66 megawatts gas fired power station gas for the Ramu Grid. Speaking at the PNG Energy Summit in Port Moresby, Mineral Resource Development Company (MRDC) Chief Operating Officer John Tuaim said Dirio is currently providing a 45 megawatts (MW) gas-fired power station for the Port Moresby grid, and construction on the following project is anticipated to start in early 2023 for the Ramu Grid. The first Dirio project outside of Port Moresby, according to Mr. Tuaim, is already powering the city. They are now looking at the second project, which will be up in Hela Province and deliver 66 MW while also connecting to the Ramu Grid and servicing Southern Highlands Province. “Dirio will be using the same technology and same landowner groups for the first project in the next project up in Hela and we have already signed a Power Purchase Agreement (PPA) with PNG Power Limited,” he said. “We will also utilise the same strategic staff and local companies to do the next project as well. Once it is done it will provide a cheaper cost of generation power for PNG Power as well.” He stated that Dirio is anticipating a long-term solution for PNG to offer 283MW gas-fueled generation to 12 places around the nation following the project up in Hela, which would bring the advantage of PNG's gas deposits to the entire country. According to Mr. Tuaim, construction on that project is scheduled to begin in 2023 since the National Executive Council (NEC) has already given its approval and because a PPA with PNG Power Limited at 50% of current costs is still waiting.   Reference: Kamus, Maxine. Post-Courier (21 September 2022). “Dirio’s Next Project”.

Oil and Gas

PNG Business News - September 26, 2022

Papua LNG Project to Produce a Further 2–3 million tonnes per annum

By 2032, it is anticipated that the Papua Liquefied Natural Gas project (Papua LNG) would produce an additional 2–3 million tonnes of liquefied natural gas annually. Given that Total Energies announced FEED (front-end engineering and design) for the Papua LNG Project in July of this year, Minister for Petroleum and Energy Kerenga Kua believes that PNG will export LNG in the ensuing decades. The project, according to Mr. Kua, will virtually double PNG's LNG exports from the current 8.5 million tonnes per year to 14–15 million tonnes per year, he said during the 2022 National Petroleum and Energy Summit in Port Moresby. “Papua LNG is likely to reach its final investment decision (FID) in late 2023 and with a four-year construction phase, we expect the first phase of LNG around the end of 2027 and late 2028,” Minister Kua said. “This will be followed by FID and construction on P’nyang gas project with further plans to deliver 2-3 million tonnes per annum of LNG by 2032.” According to Mr. Kua, as nations improve their renewable energy resources, LNG serves as a bridge fuel worldwide, and PNG is on the route to achieving that goal. In the future, when they could be customers for PNG's export of green energy, he said that PNG's role as an LNG exporter will help. According to Peter Larden, managing director of ExxonMobil PNG, PNG is in a good position to increase its LNG capacity as a result of the PNG LNG project's strong foundation. According to Mr. Larden, the country has the chance to watch as new innovations take place, which might boost the economy of the country for many years to come. “PNG exports somewhere between 8 and 9 million tonnes of LNG per year and even if the Papua Project comes online, it will still represent about 2 per cent of global demand or global supply through the 2030 period,” Mr Larden said. The good news, he added, is that PNG has a variety of advantages because it can export LNG to fulfil demand across the world, particularly in the Asia Pacific area. Jean-Marc Noiray, managing director of TotalEnergies PNG Ltd, stated that once the Papua LNG project is approved, Total would concentrate on the initial activities. He said that Papua LNG is now developing its national content principles and practises to further drive these results into and through the massive project activity. “The national content plan will provide the guiding framework and also the collection of reporting from across the project for our reporting to government,” Mr. Noiray said.   Reference: Wohi, Lorraine. Post-Courier (21 September 2022). “Papua LNG To Delicer By 2032”. 

Energy

PNG Business News - September 22, 2022

Day 2 of 4th PNG Energy Summit highlights local content, SME development for future generation

Picture from left to right: Dr. Genevieve Nelson, Mr. Luke Liria, Mr. Peter Koim, Mr. Francis Kunuma and Mr. Kori Chan  One of the highlights of the second day of the PNG Energy Summit discussions on the 21st of September was how the energy sector could contribute toward local content and the development of local small to medium enterprises for the future. Present for the panel of discussions were Mr. Kori Chan, Managing Director of Total Waste Management Group (TWM); Mr. Francis Kunuma, Cofounder of Nares Engineering Ltd.; Mr. Luke Liria, Corporate Affairs Executive General Manager, Kumul Petroleum Holdings Limited; Mr. Peter Koim, Director PNG Gas Projects Coordination Office; and the moderator, Dr. Genevieve Nelson, Chief Executive Officer of Kokoda Track Foundation. Both Nares Engineering and Total Waste Management Group being 100-percent locally owned companies participating in the LNG project, elaborated more on the services they provided. TWM is currently the leading total waste management and environmental service provider in PNG, while Nares Engineering provides non-destructive testing (NDT) that includes x-ray, ultrasonic, magnetic particle, dye penetrant, and macro testing methods, as well as statutory inspection services. Mr. Chan and Mr. Kunuma, in response to a question by Dr. Nelson on the challenges they faced as local companies, asked the government to explore investing in the future of a skilled trained workforce, as to correlate to international standards and meet the demand in the energy sector in terms of skills and development. Mr. Liria spoke on the current achievement of Kumul Petroleum’s social investment projects in the country. These include the training of skilled technicians through its Kumul Petroleum Academy, in which ExxonMobil PNG is a major sponsor for on-the-job employment and skills. The other proposed project is the steel fabrication facility and construction training academy, which will employ more Papua New Guineans. Another major project includes support for health and sports; so far K65 million has been spent on cancer facilities in Mendi, Angau, and Port Moresby General Hospital. Closing off the panel discussions, Mr. Koim spoke of the importance of the government providing an avenue for landowners to participate meaningfully in the energy sector. As the resources are currently nonrenewable, both the landowners from the gas project areas and different stakeholders must participate in its development, he said.

Company

PNG Business News - September 21, 2022

PNG’s Leading Business & Logistics Park

The PNG Business and Logistics Park is ideal for businesses wanting to establish a strategic operational base and capitalise on its privately owned port and container terminal within minutes of the Port Moresby CBD and expanding LNG plant. Papua New Guinea is not known for its ease of doing business, especially for new market entrants.  However, the PNG Business and Logistics Park, strategically located in the growth corridor between the Port Moresby CBD and the expanding LNG plant is helping mitigate this.  Central to the attractiveness of the 94-hectare development, is its privately owned port and container terminal, complete with 540 metres of wharf and a full suite of on-site logistics services and infrastructure.  Tenants, including oil and gas majors, as well as diverse operators in their supply chains, enjoy purpose-built facilities and even on-site accommodation. The PNG Business and Logistics Park is privately owned and operated by Avenell Engineering Systems (AES), a local company employing 450 staff (95 percent local content).  AES has nearly 70 years’ experience delivering large-scale engineering, civil, and construction projects throughout PNG.  AES Principal, Dom Avenell, emphasises that there are several important drawcards to the business park but that its large, modern, and well-equipped port with more than 500 metres of berth is absolutely key.  “Many of our tenants have a port requirement, and we are the only industrial park in the country that has its own port.  We not only provide the full range of services you’d normally associate with a port and container terminal, but we’re also a project cargo specialist providing shore base logistics and staging.” Avenell says that another key drawcard for the business park is AES’ proven capacity to provide tenants with just about any kind of facility, no matter how large or complex.  “Not only do we have the in-house expertise to do this, but we also have an enormous amount of space, ideal for when tenants need to scale up their operations.” Examples of facilities AES has provided its tenants with, include dangerous goods storage, specialised workshops, cement silos and truck loading facilities, petroleum storage and bunkers. “What really sets us apart, other than the fact we have our own port” says Avenell “is that we don’t just provide tenants with ‘bare’ buildings but all of the additional and necessary infrastructure specific to their industry and operational requirements.  This ‘complete package offering’ is highly valued and goes a long way towards improving the ease of doing business in PNG.” Another feature of the PNG Business and Logistics Park that appeals to tenants, especially those in the safety vigilant resource and energy sectors, are its safety systems and credentials.  Avenell confirms that the business park meets PNG’s, as well as international safety standards, and that it complies with tenants’ industry-specific safety requirements.  Furthermore, AES is ISO certified (i.e., 45001 OH&S Management; 14001 Environmental Management; 9001 Quality Management.) In addition to these certifications, the business park’s restaurant and mess facilities that support its 300-person camp, are HACCP (Hazard Analysis Critical Control Points) certified.  Residents that choose to live in the park’s leafy and secure housing estate (45 x 1-3 bedroom homes) are also able to enjoy these facilities, as well as a range of recreational facilities and private medical clinic. While Avenell is quick to point out tenant benefits, he is equally keen to emphasise the ways in which the business and logistics park benefits his home country.  “In addition to the hundreds of PNG staff that we train and employ, are the thousands that our tenants collectively train and employ; and as the park fills up, these numbers will only increase. Furthermore, by making it easier for new operators, especially international operators, to launch or expand their businesses in PNG we’re playing an important role in attracting new investment and helping generate considerable tax revenue, all of which contributes to an improved economy and in turn, PNG’s development.” To learn more about the PNG Business and Logistics Park, including its private port, infrastructure, purpose-built facilities, and accommodation: email inquiries to pom@aespng.com

Energy

PNG Business News - September 21, 2022

4th Papua New Guinea Energy Summit and Exhibition paints a promising future

The fourth Papua New Guinea Energy Summit and Exhibition commenced on the 20th of September 2022 at the Hilton Hotel and will end on the 22nd of September. The theme of the summit is "A New Dawn for PNG's Energy Sector Development." The host sponsor for the Summit is Kumul Petroleum Holdings Limited, whose Managing Director Wapu Sonk gave the opening remarks. Mr. Sonk stated that PNG is blessed with both renewable and non-renewable resources and that the proper development of these will underpin national development for many years to come. Representing the government, Minister for Petroleum and Energy Hon.Kerenga Kua, in his keynote address, stated that PNG is an exporter of liquefied natural gas. This, in the long run, will prepare the country for the future to be viable when there will be customers for PNG's green energy export. Mr. Kua also elaborated that getting electricity to remote areas is not easy given the topography of the country, and PNG's electrification reach is poor compared to other countries. Major players in the energy industry, including the National Energy Authority (the regulatory body of the state), gave their presentations as well to help potential investors in the country work cohesively with different stakeholders, in line with the government's policy and existing national content plan. Existing energy developers and partners such as ExxonMobil PNG, Santos, MRDC, Twinza Oil, High Arctic Energy, and Chiyoda also gave detailed presentations. One of the key areas highlighted by all of them is that they are looking forward to advancing in community initiative projects, including sports, education, health, carbon emissions projects, and utilizing technology that will enhance green energy in the future. Besides the energy developers, Vodafone PNG was present as well for a presentation on the use of telecommunication as a major player in the energy industry in terms of technology while working remotely in the terrains of Papua New Guinea. A total of 30 exhibitors were enlisted for the exhibition, including: Aspen Medical AG Energy Limited American Chamber of Commerce ANZ Bank Limited- PNG Atlas Steel PNG ExxonMobil PNG Limited High Arctic Energy Services PNG Limited JX Nipping Oil and Gas Exploration Corp- Japan Kina Bank Kumul Petroleum Monier Limited MRDC MTIS Group (Asia Pacific) MVIL NACAP PNG Limited National Energy Authority Nambawan Super Pacific International Hospital Pacific MMI Insurance Limited PNG Business News PNG Internal Revenue Commission RTI International- PNG Electrification Partnership Santos Limited Telikom Thai Benkan Company Limited Total E&P PNG Limited Touchstone NDT Limited Twinza Oil Vodafone Papua New Guinea Westpac

Business

PNG Business News - September 21, 2022

PM MARAPE MEETS WITH STEAMSHIPS OWNER JOHN SWIRE; INVITES COMPANY TO DIVERSIFY, EXPAND

PRIME Minister Hon. James Marape recently (20/09/22) paid a courtesy visit to John Swire of John Swire & Sons Ltd, the principal shareholder and parent of Papua New Guinea’s oldest company – Steamships Trading Company. The meeting with John Swire & Sons at their London head office, was to thank the shareholder for keeping their investments going over a long time in PNG and still continuing in the face of everything PNG has gone through. The meeting was also to reassure the investor of the current efforts the Marape-Rosso Government is now putting into expanding the economy through the development of enabling infrastructure, Agriculture and downstream processing. PM Marape said: “Steamships has PNG truly at its heart. It has been operating in the country for over 90 years, with a history that is entwined with the country’s own history. Still, it is going strong. “Swire is a big company globally, with substantial shareholding in Cathay Pacific also. “My meeting with John Swire today was to reassure him that the future of PNG is looking up as we begin on the efforts to expand the economy toward the K200 billion mark within the next 10 years. We are doing this by opening up the rest of the country through infrastructure development, Agriculture and downstream processing. “I also reassured him that my government is more than willing to work with companies that have stood the test of time with PNG, and Swire – through Steamships – is the longest and most loyal. “The Government is looking forward to seeing Steamships and Swire consolidate their positions in PNG, and diversify and expand even further. “Steamships has been with us long before our own Independence and knows the PNG business environment like no other. Nothing would make us happier than to see it expand into the areas we are working at such as Agriculture, downstream processing and building MSMEs among Papua New Guineans,” said PM Marape. The Prime Minister said the Government was working at upgrading enabling infrastructure to support investors through the Connect PNG Program covering roads, bridges, wharves and jetties, airports and airstrips, including electricity which was mentioned by Swire as one of the challenges being faced by Steamships. PM Marape said power supply should be upgraded to full capacity within the next three to four years in the Southern region, and the Lae – Highlands area all the way to Hides utilising gas (Western end) and hydro (Eastern end). The Prime Minister once more gave credence to the link as established through the Commonwealth with the United Kingdom. “The country would know my view by now on maintaining our arrangements with the Commonwealth, especially with UK. UK is just like the United States; it is the capital of the free world, capitalistic society. This is where commerce and trade took off from, with huge markets here. At the moment they buy our oil palm, tuna and exports that find their way into the European market,” said PM Marape.   Article courtesy of PMNEC

Join Papua New Guinea's

Business Community

Be the "First" to get our exclusive Digital Magazine & Weekly Newsletter.