Exxonmobil PNG Invests K8.4M In Local Communities In 2020

by PNG Business News - July 08, 2021

Photo Credit: Post Courier

In the year 2020, Exxonmobil PNG has invested a total of K8.4 million in local communities through contributions, sponsorships, in-kind assistance, and community-based initiatives.

Through tax credit initiatives, an additional K57.4 million was spent on local infrastructure.

Despite multiple COVID-19 challenges, EMPNG's team achieved record LNG production levels, delivering the company's best safety performance since production began while continuing to meet environmental and social commitments, according to outgoing managing director Andrew Barry's annual PNG LNG Environmental and Social report.

“EMPNG has completed over 70 million hours of work since production began and had not lost time incidents for more than three years, with no significant process safety events for almost seven years.

“A significant milestone was achieved on September 1 with EMPNG’s first shift fully managed and operated by qualified Papua New Guinean workers.

This included the Hides Gas Conditioning Plant and Pipeline Operations Supervisors, and control room, field and pipeline technicians,” Barry said.

He said the K8.4 million investment comprises the continuation of the PNG LNG Project's contract with ANU enterprise proprietary limited, which began in 2015, to enhance community livelihoods.

According to the study, more than 5400 community interactions would be held in 2020, with over 2000 official and 3400 informal encounters with 36,650 stakeholders.

New managing director Peter Larden remarked, “I look forward to building upon the standards Andrew Barry and EMPNG have set to further cement PNG’s reputation as a world-class LNG producer and to be able to contribute in a sustainable and meaningful way to enhancing the communities in which we operate and the nation of PNG.”



Post-Courier (7 July 2021). “ExxonMobil Proud OfK8.4M Investment In Local Communities”.

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PNG Business News - February 15, 2021

Moni Plus Seeks Independent Directors

Heduru Moni Limited T/a Moni Plus is welcoming applications from experienced candidates for the role of Independent Board Director. Heduru Moni Limited T/a Moni Plus is a licensed financial institution under the Banks and Financial Institutions Act (amended) 2000, and providing financial services to its clients throughout Papua New Guinea having branches in Port Moresby, Lae, Mt Hagen, Kokopo and Alotau. The company provides the following products and services:Personal Loans SME Financing Asset Finance Term DepositsFinanciers Guarantee Foreign Exchange Loan Against PropertyIn order to enhance its Corporate Governance structure, the company would like to invite qualified and experienced professionals with impressive track records in the fields of Banking & Finance, Business Management, Audit, Risk & Compliance and/orLegal as an Independent Directors. To be considered, an applicant must be able to demonstrate his/her suitability for the role vis-à-vis:Essential Skills Audit and Risk Management preferable in the Financial Sector ICT, Project Management and Disruptive Business Modelling Finance and Investment Management Corporate GovernanceJob Requirements Have a comprehensive appreciation of the responsibilities of a Director, plus the willingness and commitment to devote the time necessary to fulll the required duties Maintain compliance with external regulations and internal policies Be conversant with BPNG prudential standards BPS 300 Corporate Governance Appointing and assessing the CEO Establishing compensation for executives Must be a current member of a professional organization such as PNGID, AICD or GIA Overseeing the Company’s operations including its controls and accountability system Ensuring that the Company has appropriate Board and Management succession plans Approving the Company’s budgets and business plans and monitoring the management of the company’s capital, including the progress of any major capital expenditures, acquisitions, investments or divestments Establishing procedures to ensure nancial results are appropriately and accurately reported on a timely basis in accordance with all legal and regulatory requirementsProviding Strategic direction for HML Providing oversight to the company’s policies and standardsQualifications Minimum BS/BA in business administration or LLB or related eld; master’s degree preferred; Meet the Fit & Proper Requirements of BPNG Be a professional member of the PNG Institute of Directors Have a good understanding of the PNG economy Have a minimum of 5 years’ experience on the Board (preferable) Have experience at a senior leadership level Have a good understanding of PNG’s nancial services sector & PNG’s socio-economic trendsWomen are highly encouraged to apply!Please address all applications to the Nominations & Succession Committee, Moni Plus, PO Box 1748, Boroko, NCD or email nsc@moniplus.com, Telephone: 313 2900 Fax: 323 3438. Applications close on 31 March 2021.


PNG Business News - February 09, 2021

Weir Minerals Launches New Modular Anti-Abrasion Panels

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PNG Business News - March 05, 2021

BSP Expecting Positive Financial Results In 2021

Bank South Pacific (BSP) Group expects its financial results to be no less than last year’s.This was according to BSP chief executive officer Robin Fleming, who said that the year started off well for the bank. Ending December 31, 2020, the bank made a net profit of K806.2 million, a 9.5 per cent decrease compared to K890 million in 2019. The decrease was caused in part by the effects of the pandemic. Other highlights for 2020:Total assets up by 12.3 per cent and loans up 3.0 per centCost to income stable at 37.4 per cent, 37.7 per cent in 2019Capital adequacy steady at 23.3 per cent, still well above the Bank of PNG requirement of 12 per centLoan provisions increased to 5.9 per centDividend yield at 11.17 per cent based on the share price at K12Increased profit contributions.Fleming said that even with the challenges of COVID, the bank performed well in 2020. “For 2021, we’ve certainly planned on archiving a result which is no less than 2020,” he said. “And the year has started off well and from an investor perspective always caveat by saying that if there had been any material change in our profitability, we would be compelled under the continuous disclosure (requirement) to announce to the market. Therefore absent of any continuous disclosure announcement, we can say that this year has started off as we would have expected according to plan.”He noted, “There has been no event that gives BSP indication to signal to the market that there’s been a change in our operating performance which would require to make a disclosure to our investors.”

Recent Articles


Paul Oeka - September 29, 2022


Photo credit: Oxford Business Group The creation of the new ministries by the current government for both major agricultural commodities, Coffee and Oil Palm is a huge step forward in achieving the agriculture sectors economic potential. For the past years the agricultural sector had not been fully utilized by consecutive governments as the focus had mostly been centered on the extractive industry and Mining & Petroleum sector. This important and vital sector is eventually and currently being recognized as an economic pillar to boost the state coffers. Prime Minister Hon. James Marape said the allocation and restructure of the four newly created ministries concentrating on Horticulture (Fresh produce), Coffee, Oil Palm, and Livestock to the agricultural sector is a complete paradigm shift to get agriculture moving again. The focus of the Marape Government on ‘Taking Back PNG’ is deeply rooted and aligned with the mechanisms and functions of the agricultural sector as most of the country’s population are situated in rural settings and largely depend on subsistence agriculture to sustain themselves. Coffee, Cocoa, Oil palm and Fresh produce have been a mainstay that this rural population rely on for income for so many years. As far as many Papua new Guineans can recall and relate, Agriculture has always been the foundation and backbone of the country and it can surely drive the economy forward. Although the agricultural does not match in monetary turnovers for the country, it is an economic foundation and is here to stay. In comparison over monetary benefits with other sectors, Agriculture had not been performing to expectation due to so many underlying issues concerned and faced with the value chain of agricultural commodities prompting a decline in agricultural activities over the years. The Prime Minister said it was no secret that agriculture had declined since independence in 1975, and the current allocation of the four agricultural ministries was to revive the sector for it to be a major income generator for PNG. PM Marape said this when explaining the concept and rationale for his allocation of four ministries to the agricultural sector. This direction by the Marape/Rosso Government to emphasize more on agriculture will boost agricultural activities in and around the country. Mostly the sector had not been given proper recognition for decades and had been lacking government intervention from past successive governments. Now with the current Government’s backing, the respective agricultural ministries and its industries are expected to flourish dramatically and are likely to bring more benefits. The new ministries will also empower provinces that currently do not have mining and petroleum resources. This will certainly build stronger local economic activities for future generations. “We want to see import replacement and more exports within the agriculture sector, which is why we have allocated four separate ministries to agriculture,” PM Marape said. The recognition of this agricultural industries will also ease and slowdown rural-urban drift. The number of people migrating from rural areas into towns and cities in search for better opportunities have risen in the past couple of years due to inequality in the distribution of wealth and lack of government services. Thus, the governments focus on agriculture will encourage many unemployed Papua New Guineans living in urban areas to go back to their home Provinces or villages and be self-reliant. As economic opportunities arise in rural areas from vibrant and innovative policy interventions within these newly created agricultural ministries, it will attract many to contribute meaningfully and be productive on their own customary land. Prime Minister Marape said over the last three years prior to the creation of the new agricultural ministries, his government has given millions of kina to support agriculture through price and freight subsidies and SME support. “We are now targeting specific commodities through the establishment of the four ministries. Over the next term of government, we will give specific production targets for Coffee, Oil Palm and all other major agricultural Commodities” he said. The government also plans to revive and rehabilitate once thriving agricultural hubs in the country such as Cattle farming in the Central Province and the Coffee plantations of the Highlands region that produced quality organic Coffee and grew the fledgling industry pre-independence in the 1960’s.   Now that the agricultural sector has been categorized into four industries, there will be room for much improvement in economic activity within the agricultural sector as people will start contributing meaningfully to the economy.


Paul Oeka - September 28, 2022


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PNG Business News - September 28, 2022

PNG’s minimum wage

Commentary by Stephen Howes, Kingtau Mambon and Kelly Samof The urban minimum wage has been an important part of Papua New Guinea’s economic history. In the last few years before independence (in 1975), it was greatly increased. In the decade or so after independence, it was widely regarded as too high. In 1992, it was slashed, merged with the rural minimum, and hardly increased again for more than a decade. We can compare the minimum wage in PNG today with other Asia and Pacific developing countries using International Labour Organization (ILO) data. As Figure 1 shows, PNG’s minimum wage is 18% below the average of the 19 countries shown if the market exchange rate is used to compare minimum wages. It is 37% below the average if differences in cost of living are also taken into account (with conversions made on the basis not of market exchange rates but so-called purchasing power parities or PPPs). The greater difference in terms of PPPs reflects PNG’s relatively high cost of living. Of the countries shown, only Samoa and Kiribati have a lower minimum wage than PNG when a PPP comparison is made. This is very different to the past. Raymond Goodman, Charles Lepani and David Morawetz in their 1985 report The economy of Papua New Guinea compared minimum wages in PNG with a subset of the countries above back in 1978. Then, the PNG minimum wage was about twice as big or more than the other comparators. Today (using market exchange rates, and the earlier authors do), PNG comes in the middle of the pack, as Figure 2 shows. So far, we have shown that around the time of independence minimum wages were very high in PNG by international standards, and that they no longer are. Figure 3 shows how this change came about – also, for interest, comparing trends in PNG with those in Australia. Both the PNG and Australian weekly minimum wages are shown in Figure 3 measured in Australian dollars. The PNG minimum wage is converted into Australian dollars using the current exchange rate. Both wages are then adjusted for inflation and expressed in 2021 prices. The two series follow diametrically opposed paths. The Australian minimum wage fell with the high inflation of the 1970s and industrial relations reforms of the 1980s, and by the early 1990s was little more than half its value in the 1970s. It then increased in the late 1990s and 2000s during the resource boom, and has continued to increase. Adjusting for inflation, it is now almost back to where it was in the early 1970s. The PNG minimum wage does the opposite. It increased in the 1970s and was then held stable due to indexation, until the big bang reforms of 1992. Adjusted for inflation, PNG’s minimum wage continued to fall until 2004. There have since been some significant increases, but today PNG’s minimum wage is only about one-third of its value at independence, and below its value even in 1972, which is when the steep minimum wage increases began. The Australian minimum wage has always been significantly higher than the PNG one, but the ratio has changed a lot over time. The lowest that ratio has ever been is 2.2 in 1986, the highest 45 in 2004. The gap between the two wages is much higher now than at independence: the ratio of the Australian to the PNG minimum wage was 14.5 in 2021, compared to only 3.2 at independence (1975). This reflects PNG’s 1992 deregulation, and the faster growth in the Australian economy, which has enabled an increase in the Australian minimum wage. The solution to low wages in PNG is not necessarily to increase the minimum. In some sectors, where there is a lot of international competition, a higher minimum wage might lead to job losses. For example, in tuna processing, one of PNG’s main competitors is the Philippines. From Figure 1, we can see that PNG’s minimum wage is lower than the Philippines' on the basis of PPPs, but actually higher on the basis of market exchange rates. While the former is what matters for the welfare of workers, the latter is what matters for international competitiveness. Whether PNG’s minimum wage should be increased will require a lot more analysis. The point of this blog is simply that PNG’s minimum wage does not look high any more by international comparisons, as it has fallen a lot since independence. PNG is often described as a high-cost economy, and this is a fair description. However, with regards to unskilled labour, it is no longer a high-wage economy.   Data note: The PNG Economic Database provides the weekly minimum wage of PNG going back to 1972, and the PGK-AUD exchange rate. Wikipedia provides the Australian weekly minimum wage data (hourly and weekly, on the assumption of a 38-hour week) starting from 1966. The Australian CPI is from the Australian aid tracker. There are some years where Australian minimum wage rates change more than once in a year. For such cases, we took the average as annual minimum wage rate. The data for Asia-Pacific comparisons are from the International Labour Organization and the World Bank. The different frequencies of minimum wages for each country in 2019 in the ILO’s report are adjusted to convert to weekly rates. World Bank data is used to obtain market exchange rates and PPP conversion factors. For the Goodman, et al., data go to Table 3.6 on p.61 in their report.\ Disclosure: This research was undertaken with the support of the ANU-UPNG Partnership, an initiative of the PNG-Australia Partnership, funded by the Department of Foreign Affairs and Trade. The views are those of the authors only. This article appeared first on Devpolicy Blog (devpolicy.org), from the Development Policy Centre at The Australian National University. Stephen Howes is Director of the Development Policy Centre and Professor of Economics at the Crawford School of Public Policy, at The Australian National University. Kingtau Mambon is currently undertaking a Master of International and Development Economics at the ANU Crawford School of Public Policy, for which he was awarded a scholarship through the ANU-UPNG Partnership. Kelly Samof is a lecturer in economics at the School of Business and Public Policy, University of Papua New Guinea.

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