The advantages of having a second Liquefied Natural Gas (LNG) project in a country like Papua New Guinea is important and strategic in that the people are attached to the land, and they want to feel they are part of the extraction of resources and wealth -- and they can only do that through the development of their customary land.

The focus has shifted from Oil to Liquefied Natural Gas (LNG) in the 2000s and the country is now looking at three more LNG trains to be added to the two trains that exist now.

Total Energies EPPNG, the developer of the Papua LNG project in the Gulf Province, will be progressing to utilize the Elk and Antelope gas fields before ExxonMobil's proposed development of P’nyang in Western Province, as this phased approach to gas development would support ongoing economic growth in Papua New Guinea.

Design work on the upstream, gas production side of the Papua LNG project, involving tapping the Elk and Antelope fields in the eastern Papuan Basin, started in July 2022, and this will now be extended to be ready for construction that could begin as soon as 2024.

In contrast, the P’nyang project will be an independent project with landowner benefits to be provided under a future benefit sharing agreement to be negotiated by the State in accordance with the Oil and Gas Act.

Currently the Papua LNG project is on course to be PNG’s second natural gas project, and PNG Prime Minister James Marape hopes the development will spur economic growth in a country where majority of the population live below the poverty line.

Wapu Sonk, Managing Director of the country's national petroleum company Kumul Petroleum Holdings Limited (KPHL) recently stated in an interview: "Papua New Guinea is well known for its extensive and profitable gas fields. While our LNG reserves are lower than those found in Qatar or Mozambique, for example, we still have a significant amount of discovered gas, and that allows us to play an increasingly important role in the global LNG supply chain". [1]

"We will continue to benefit from our proximity to Asian markets, which limits transportation costs and offers lower geopolitical risk than the Middle Eastern market. It will be important for us to capitalise on this advantage by maintaining the progress we have made in terms of project development in our country". Mr Sonk said.[1]

Papua LNG Project - Early Works and Infrastructure

Recently the business fraternity in Port Moresby sat over a breakfast organised by Papua LNG's project developer TotalEnergies EPPNG in conjunction with Port Moresby Chamber of Commerce and Industry (POMCCI) to give both national and international businesses an insight on the early works of the Papua LNG project, and a brief on the progress of the project on the 11th of May 2023 at the Royal Papua Yacht Club in Port Moresby. [2]

Speaking at the breakfast was Managing Director of Total Energies EPPNG Jean-Marc Noiray, who said the Project has not yet started work but has already started implementing community based projects and infrastructure within the project area. [a]

"The Papua LNG Project is a big project and we are just at the begining of construction of its multi-decade production life, but already we can see the impact through the successful early works and start up in and around the project," Noiray said. [a]

"Do not underestimate the confidence that the Papua LNG project's reputation will give others as they consider investing in this great country,” he said.

"Integrated efforts by all stakeholders in the early progress of the project is key to see PNG reap benefits from the project through development of Roads, Bridges, Airstrips as well as developing local content during the early works and infrastructure start up phase of the project". Mr Noiray said. [a]

The project is expected to create significant economic benefits for Papua New Guinea, including job opportunities, infrastructure development, and revenue generation. The project is also expected to contribute to the country's energy security and reduce its reliance on imported fuel. [a]

During the information session, representatives from TotalEnergies and EPPNG provided details on the project's timeline, scope, and potential impact on the local communities. They also discussed the company's commitment to environmental sustainability and social responsibility. [a]

Local business owners and entrepreneurs expressed their interest in participating in the project and learning more about potential business opportunities. They also raised concerns about the project's potential impact on the environment and the need for effective community engagement and consultation. [2]

National Content

Business opportunities for PNG companies will be mostly in the aspect of supplier development of the project. This will be In accordance with the Oil and Gas Act, and PNG companies will be used for the supply of goods and services wherever they are competitive with foreign sourced goods and services. [2]

Strategic Community Investments will be a mainstay within the lifespan of the project as these are corporate contributions and other voluntary community investments made in host communities. They are designed to reduce barriers to development, build capacity and improve standards of living through programs targeting health, education, sustainable livelihoods and environment. [b]

The Papua LNG project will ensure that a skilled local workforce is established and expected to offer over 5,000 positions to nationals through the WAN PNG recruitment platform over its lifespan. The project is focused on setting an exemplary stance in its implementation by paying particular attention to the environment and biodiversity,  while ensuring the rights of the local communities and landowners. [b]

Wan PNG platform

The much anticipated strain on human resources, particularly in relevant skilled areas, is a contributing factor in phasing each developing project. [2]

The competition for skilled workforce is already underway domestically and internationally. Its also a revolutionary opportunity to build up PNG’s current local workforce, with the technical and soft skills which will be needed as the country progresses into this new wave of economic development. [2]

The collaboration between Ubidy and KPHL with the support of Total Energies has made way for the emergences of Wan PNG a National recruitment Platform focused on developing local talents and is intended to provide 5,000 job opportunities for PNG nationals for the Papua LNG project when it launches. [c]

At a glance, the Wan PNG platform was developed by Ubidy, a global recruitment marketplace for employers, jointly with KPHL. The platform is dedicated to expanding opportunities for local Papua New Guineans with the goal to increase the development and employment of local PNG talent in sharing newfound opportunities in the country's booming resource and industrial sectors. [c]

Papua LNG Project objectives

Papua LNG project's commitment is to produce natural gas, the lowest carbon fossil fuel, with a very high focus on protecting land, wildlife, local inhabitants, and their livelihoods, as well as expanding knowledge of PNG's biodiversity and its preservation. [d]

The project also aims at creating employment opportunities during both construction and production to provide a catalyst for further gas-based industry development in the country. It supports capacity building of government agencies involved in the petroleum sector as well as supporting capacity building and skills development of domestic SMEs and workforce. [d]

To move national content, TotalEnergies and its partners are working closely with an independent panel of experts highly recognized for their contribution on environment and socio-economic development, to make the Papua LNG project best-in-class in terms of sustainability. [d]

Technological aspect - LNG e-Trains

The most important infrastructure needed for LNG production and transportation is an LNG plant consisting of one or more LNG trains, each of which is an independent unit for gas liquefaction (melting and condensing) and purification. [3]

A typical LNG train consists of a compression area, propane condenser area, and methane and ethane areas. In the context of the midstream oil & gas sector, a train consists of various components to process, purify, and convert natural gas to liquefied natural gas (LNG). [3]

They are called trains because of the consecutive  arrangement of the equipment used to process and liquefy natural gas.[3]

TotalEnergies confirmed the use of four electric LNG trains to process gas at 6 million tonnes a year. The use of the revolutionary new technology for processing gas will ensure lower emissions and better efficiency. [4]

The electric trains will be supplemented by two of the existing conventional trains used at the PNG LNG facility at Caution Bay, which is 20km out of Port Moresby.[4]

One of the new LNG trains would be fed by the P’nyang expansion and the other two by Papua LNG. By sharing infrastructure at the PNG LNG plant, it is estimated that stakeholders could save US$2bn-3bn in construction costs. Altogether the two projects would almost double the country’s LNG export capacity, with Papua LNG alone adding 5.5m tonnes per year to existing capacity at the PNG LNG plant. [4]

Papua LNG is expected to have liquefaction capacity of up to six million mt/year of LNG, with first production expected by the end of 2027 or early 2028.

Current Project Timeline

Prime Minister Hon James Marape recently remarked that the project is on track, setting the stage for 4 years of Papua LNG construction, immediately followed by another 4 years of the P’ynang project construction, and that the FEED phase will be completed in less than 12 months, which will include the marketing project resources to potential markets and counterparts abroad compared to PNG LNG FEED phase which spans over 16 months. [5]

Papua LNGs FID is expected by 4th quarter 2023 or 1st Quarter 2024 and construction is to begin thereafter from 2024 to 2027. P’nyang LNG will commence construction in 2027 to 2032, effectively giving 8 years of construction phase and its benefits to the economy. [5]

The venture partners in the Papua LNG project are currently TotalEnergies (31.1 per cent), ExxonMobil (37 per cent) and Santos (22.8 per cent). A final investment decision is expected to trigger the PNG State’s direct involvement in the venture, with the following percentages expected. [2]

 

References:

1) Australian Financial Review (23 March 2023) |  PNG hatches plan for new,gas fields https://www.afr.com › ... › Energy

2) TotalEnergies insight into  Early Works and Infrastructure of Papua LNG (11th May 2023/ Business Breakfast and Infornation Session (Attended session)

• Papua LNG Project - Early Works  and Infrastructure
• National Content
• Wan PNG platform
• Papua LNG Project objectives

See press releases and full insight and speeches on website: https://papualng.com.pg/

3) What is an LNG Train? Cameron LNG/ LNG and Liquefaction https://cameronlng.com › lng-facility

4) Papua New Guinea: TotalEnergies launches integrated engineering studies ... ( 7th March 2023) https://www.google.com/url?sa=t&source=web&rct=j&url=https://totalenergies.com/media/news/press-releases/papua-new-guinea-totalenergies-launches-integrated-engineering-

5) Oil & Gas Journal (7 March 2023) TotalEnergies launches integrated FEED for Papua LNG project https://www.ogj.com › ... › LNG

Photo: Pacific Towing towed a replacement 250m oil transfer hose from Port Moresby to an offshore export terminal in the Gulf of Papua in February as part of the terminal’s scheduled routine maintenance.  Pacific Towing also towed the replaced transfer hose back to Port Moresby.

Pacific Towing (PacTow) is increasingly performing ocean towages, including outside of Papua New Guinea and broader Melanesia.  Recent months have seen the marine services company perform two towage projects from Northern Australia and another for an oil and gas major in the Gulf of Papua.  PacTow anticipates further growth in ocean towage services as barges and vessels, as well as heavy plant and equipment are sourced internationally for the imminent construction phase of PNG’s next LNG project.

PacTow is a PNG business in its 46th year of operation.  Employing in excess of 200 staff, the company operates out of PNG’s five main ports as well as in Honiara, Solomon Islands.  Although harbour towage represents approximately 70 percent of its business, PacTow also provides a range of niche services to the oil and gas sector and is Melanesia’s leading salvage operator.

General Manager Neil Papenfus reports that PacTow has provided international towage services for at least two decades but that these have increased in frequency over the last five years.  Two significant projects were the 2019 towage of a stranded barge from Micronesia to Indonesia, as well as the 2020 tandem towage of a vessel and barge from American waters in Guam.

Papenfus says that PacTow has increased its capacity to perform long distance ocean tows and that this is “primarily due to the company’s refleeting programme” which it embarked upon in 2020.  The company’s 20-vessel fleet has been modernised and more than half of its tugs are Azimuth Stern Drive (ASD) tugs.  Several vessels in PacTow’s fleet are also specialised ‘blue water’ tugs ideally suited to long distance tows, including multi-week projects such as international tows and salvages.

The company’s diverse fleet and experienced crews have the capacity to tow a wide range of vessels and even ‘items’ as evident by its first three ocean tows for 2023.

PacTow delivers excellent, reliable, and safe marine services through PNG and the broader region. A well-maintained fleet, as well as a dedicated and exceptionally trained team underpin the company’s ongoing expansion and success. PacTow is part of a larger sea and land logistics group wholly owned by Steamships Limited.  To learn more about PacTow:  www.pacifictowingmarineservices.com.

Photo: Senator Tim Ayres. Credit: Senator Tim Ayres Facebook Page

Australia Assistant Minister for Trade and Manufacturing, Senator Tim Ayres, addressed the 38th Australia PNG Business Forum and Trade Expo, highlighting Australia's focus on investing in roads, ports, and electricity in Papua New Guinea (PNG). He stressed the importance of reliable infrastructure for uninterrupted travel, trade, and commerce within PNG.

Senator Ayres pointed out the long-standing collaboration between Australia and Papua New Guinea in maintaining the national road network through the Australia PNG Transport sector program (TSSP). He noted that the TSSP, initiated in 2007, represents the largest bilateral program Australia has invested in within PNG's transport sector. The program has significantly improved the lives of the people of Papua New Guinea.

"Australia is PNG's number one infrastructure partner, and these investments play a significant role in creating employment opportunities in these projects," stated Senator Ayres. He further emphasized the involvement of local companies in PNG, saying, "Most of Australian contracts go to local companies here in PNG. It isn't just a case of Australian workers arriving to do quick-built projects and buggering off with the profits."

According to Senator Ayres, the focus extends beyond completing projects; it involves investing in local communities, providing training for young people, promoting entrepreneurship, creating opportunities, and building up the economy. The ultimate goal is to foster sustainable development and strengthen the partnership between Australia and PNG.

Australia's dedication to infrastructure development in Papua New Guinea underscores its commitment to enhancing connectivity, stimulating economic growth, and improving the overall well-being of the people of PNG. Through these ongoing investments, Australia aims to forge a long-term partnership with PNG and contribute to the region's sustainable development.

Photo: Professor Stephen Howes. Credit: Australia National University

Papua New Guinea is grappling with a foreign exchange shortage, resulting in higher imports and lower exports, according to economist Professor Stephen Howes from the Australia National University (ANU) Development Policy Centre. Speaking at the 38th Australia-PNG Business Forum and Trade Expo in Port Moresby, Professor Howes highlighted the country's loss of competitive economic gains from the 1990s during the resource boom between 2000 and 2014 as a major contributing factor.

"The country is faced with a foreign exchange (forex) shortage largely because PNG lost its competitive and hardline economic gains from the 1990s during the resource boom between 2000 and 2014," Professor Howes explained.

While the growth of the economy and forex was observed following the boom, the real exchange rate remained persistently high over the past decade, exacerbating the shortage. This high exchange rate has both boosted the economy and contributed to the scarcity of forex.

"The PNG Kina has depreciated from 2013 to 2020 according to statistics from the Bank of Papua New Guinea (BPNG), however the real exchange rate has remained high," Professor Howes stated.

The depreciation of the Kina was primarily driven by an increase in imports and inflation, impacting the country's forex reserves over the last decade. The highest depreciation rate, amounting to 14 percent, was recorded at the end of 2015, coinciding with Papua New Guinea hosting the 2015 Pacific Games, where significant infrastructure spending occurred.

"In the last three years, the kina had hardly moved against the US dollar, however it did appreciate by 17 per cent over other currencies on a trade-weighted basis, which included a depreciation rate of zero per cent from the end of 2021 to September 2022," Professor Howes noted.

The resource boom generated increased revenue for Papua New Guinea; however, the real exchange rate offset the economic shortages that followed, significantly impacting forex availability.

"The Kina was floated in 1995 to make PNG exports competitive on the international market. The Kina value is now determined by demand and supply in the foreign exchange market," Professor Howes explained.

Regarding the exchange rate policy of the Bank of Papua New Guinea, Professor Howes clarified that the central bank was not obligated to meet all market demands and did not require buyers to bid for forex or set prices. This policy primarily aimed to control inflation, limiting the growth of the country's forex reserves in preparation for future resource booms.

The Wan PNG platform has been moving from strength to strength over the last few weeks as it prepares for its official launch soon.

After signing the Memorandum of Understanding between Papua LNG and Kumul Petroleum Holdings Limited, the platform has now been presented at a number of events such as the recently organised Port Moresby Chamber of Commerce and Industries breakfast on the 11th of May. The presentation was well received with numerous engaging questions.

Significant interest was expressed by the audience after the event with a number of attendees reviewing the platform after the event and signing up. An additional session was organised at Kumul Petroleum Holdings Limited (who are the organisation who initiated, sponsored and had the vision to launch the project) which was attended by further local Papua New Guinean employers.

Since then, the FM100 team carried out a live streamed interview that received a number of interested callers discussing how the platform will help the nation. It was explained how the platform will solve a number of challenges around skill shortages and finding jobs.

The Wan PNG team is preparing for an official launch coming up over the next months which will be announced soon. Papua New Guineans will be encouraged to sign up during the official launch and take part in the platform which is aimed at driving prosperity in PNG by:

1. Showcasing Local Talent: First and foremost, Wan PNG’s goal is to showcase the best PNG talent to both local and foreign business through a national candidate database.
2. Kickstarting Careers: Wan PNG is dedicated to the promotion of internship and entry-level positions to school-leavers and other entrants into the workforce.
3. Expanding Diversity: Wan PNG is committed to highlighting women and other under-represented people to employers to build a more diverse, successful workforce.
4. Training and Upskilling: Job Seekers can access expert career advice and courses offered by the community of training partners to develop the skills they need to succeed.
5. Educating and Informing: Job Seekers have instant access to news, resources, and courses offered by the community of educational partners to build the foundation for their future.
6. Supporting Landowners: Wan PNG is dedicated to raising the participation and prospects of landowners across Papua New Guinea, including highlighted Wan PNG profiles.

Beyond allowing employers to find suitable employees, the platform reveals the data on skill gaps identified on the platform, allowing training and education institutions to ensure they offer the right skill development needed by the nation now.

New features are being continually added to help increase the development and sustainable employment of local PNG talent, so everyone can share in newfound resources and growing prosperity.

Photo: The apprentices and OTML Training Centre Staff at the indenture signing

Thirty-seven (37) new apprentices have joined Ok Tedi Mining Limited’s (OTML) Apprenticeship Training Program, bringing the total number of apprentices currently undergoing the program to 73.

The first-year apprentices signed their Indenture Contracts with OTML and the National Apprenticeship Trade Testing Board (NATTB) on May 16th in Tabubil, Western Province.

The 37 apprentices include 19 males and 18 females who are enrolled in various trades including auto electrical, carpentry, cabinet making and joinery, electrical, heavy equipment fitter , maintenance fitting and machining, metal fabrication & welding, plumbing and refrigeration and air-conditioning.

The apprentices will undergo 4 years of apprenticeship training which will include practical placements within the company, extension and block courses either onsite or through various registered institutions in the country that will contribute to the final attainment of their trade certificates.

OTML General Manager People and Capability, Mark Stone welcomed the new apprentices and highlighted the importance of safety, discipline and professional conduct while in training emphasising the OTML values of Safety, Integrity and Teamwork to be used as guiding pillars in their apprenticeship journey.

He said “safety is the most important thing in everything we do. If we can’t do it safely, then we simply can’t do it! We want people to work hard but go home at the end of the day without having done any damage to themselves, others or any equipment.”

NATTB Officer, Lyn Kila, appealed to the new hires to ensure they embrace the opportunity with OTML and do their best to successfully complete the training program.

Ms Kila said, “This is an opportunity that cannot be taken for granted and with the signing of this contract you are bonded by the contract to both NATTB and OTML. Follow the binding contract and the OTML rules and regulations to complete this training. This is a privilege that you need to take advantage of for a good career path in life."

Since 1989, a total of 1,093 apprentices have undergone the OTML Apprenticeship Training Program.

Photo credit: Australia Papua New Guinea Business Council

Hon. Richard Maru, Minister for International Trade and Investment, in his keynote address on the 16th of May at the 38th PNG-Australia Business Forum and Trade Expo at Hilton Hotel Port Moresby, said Papua New Guinea's trade was always in favor towards Australia.

“For the last 47 years, trade has been in favour of Australia; that has been the status quo. PNG’s exports to Australia are gold and other precious metals, which comprise over 98% of total exports. This means less than 2% are from the non-extractive sector and are valued at about K50 million per annum,” he said.

Australia’s total exports to PNG are estimated at over K1.5 billion, which translates to a ratio of 1 to 10 -- a very huge trade imbalance. In terms of investment, Australia has invested AU$24 billion in PNG, while PNG invested AU$ 4 billion in real estate,” said Minister Maru.

“Australia has been using its very stringent technical barriers and biosecurity to make it very difficult for PNG to export its taro, sweet potato, fish, and other food products to Australian market. So as far I as the Minister for International Trade and Investment is concerned, there is no need for us to talk about a trade agreement,” he added.

“There is no need to talk about Placer Plus or even a study on a Free Trade Agreement between our countries. There is no point when the trade and investment imbalance is so big and so skewed to Australia and unlikely to be reduced in the foreseeable future,” said Minister Maru.

The minister encouraged Australian businesses to seriously canvas more new and emerging business opportunities in PNG and seek to partner with local SMEs and PNG-owned companies in their business endeavours. 

On the other hand, Australian Senator the Hon. Tim Ayers, Assistant Minister for Trade and Assistant Minister for Manufacturing, in his keynote address said Australia is proud to be Papua New Guinea's largest economic, security, and development partner, with two-way trade reaching $5 billion in 2021-2022.

"Trade isn't just about commercial benefits, it's also about dealing with big challenges, building capacity to meet international market standards, and creating businesses that deliver good local jobs,” he said.

“Australia is proud to support Papua New Guinean companies and reach their potential by elevating the quality of production to meet international market standards and establish commercial links with Australia and New Zealand,” said Senator Ayres. 

A testament to Australia's commitment is the PHARMA Plus program, where the Queen Emma Chocolate Factory received expert training and technical expertise in producing international-standard products certified to the Australian and New Zealand Markets as outlined by Senator Ayers. 

Regarding trade, Ms. Jane Ravusiro, Advocate for Sustainable & Inclusive Agriculture Growth & Livelihoods for Abt Associates Australia, commented that the Papua New Guinea market was not viable with strict security protocols, and that the Australian market was structured differently. 

An example of this barrier of trade put into picture was a presentation made by Mr. Navin Raju, Chief Executive Officer for City Pharmacy Limited, who gave an account of CPL's work in Papua New Guinea, especially in engaging local farmers in the agriculture sector to better equip them in selling their produce.

He explained there was no proper market access available from the farmers’ end to the buyers and that relevant stakeholders and authorities should work together in making sure Papua New Guinea's agriculture produce does reach Australia. 

“When I go to the Australian markets, I usually see taro from Tonga or Fiji. How about PNG and why can't our taro reach Australian Markets?” said Mr. Raju.

The forum showed Papua New Guinea and Australia's perspective on how each country had a different type of business environment and a dire need to address outstanding technical and political issues regarding trade.

United States President Joe Biden has canceled his visit to Papua New Guinea, citing the need to focus on debt limit talks in Washington. While security arrangements for other leaders, including India's Prime Minister Narendra Modi, were already in place, Biden's visit has been called off. He was scheduled to arrive in Port Moresby on Monday afternoon, sign important agreements during his three-hour visit, and then proceed to Sydney, Australia, to attend the Quad leaders meeting.

In a statement released by the White House on Tuesday, it was emphasised that the cancellation was necessary for Biden to address the pressing issue of the debt limit in Congress. The President called upon members of both the Republican and Democratic parties to unite and prevent a default.

The US embassy in Port Moresby will provide information about which senior US official will visit PNG to sign the key agreements on behalf of the President.

Despite the cancellation of Biden's visit, Internal Security Minister Peter Tsiamalili Jr confirmed that security planning and preparations would continue. He assured that the Indian Prime Minister Narendra Modi's visit was still on schedule and that security measures would be maintained accordingly. Tsiamalili clarified that the closure of the country's airspace would only be implemented if President Biden had come.

Assistant Police Commissioner Anthony Wagambie Jr, responsible for National Capital District and Central, will oversee the operational side of the security exercise. The Defense Force, Correctional Services, and Fire Services will also be involved in ensuring the safety of the visiting leaders.

The White House's statement emphasised the importance of revitalising and reinvigorating alliances and partnerships like the Quad. While the cancellation of Biden's visit is a setback, the United States remains committed to engaging with Australia, the Quad, PNG, and the leaders of the Pacific Islands Forum to promote global stability and prosperity in the coming year.

Photo: (L-R) President Anthony Smaré – PNG Chamber of Mines and Petroleum, Paul Hueper – Director of Energy and Mineral Programs for the Bureau of Energy Resources, US Department of State with his colleagues on the right, and MRA’s Managing Director Jerry Garry (centre) at the Prospectors & Developers Association of Canada (PDAC) in Toronto, Canada early in March 2023 promoting investments in PNG’s mineral sector.

Papua New Guinea (PNG) has been ranked as one of the least attractive jurisdictions globally for mining investment according to the Annual Survey of Mining Companies published last week by the Fraser Institute, an independent, non-partisan Canadian policy think-tank.

President of the PNG Chamber of Mines and Petroleum, Mr Anthony Smaré has called for urgent dialogue with National Government and all stakeholders to address this decline in PNG’s international standings. “The results of the Fraser Institute Global Survey shows how much PNG has fallen as an international destination for mining investment and needs to be urgently addressed if we are going to preserve this industry to benefit future generations beyond our current operating projects. If we want this industry to have a future, to continue to provide employment, business opportunities, royalties, dividends, taxes and other benefits for future generations, it is imperative that all stakeholders, led by the National Government, take note of these survey results, and engage in dialogue to urgently address the policy matters deterring investment in PNG, particularly regulatory uncertainty and aspects of our taxation incentives.”

The Fraser Institute’s global mining survey is the most comprehensive report on government policies that either attract or discourage mining investors. This year’s report ranks 62 jurisdictions around the world based on their geologic attractiveness (minerals and metals) and government policies that encourage or deter exploration and investment. PNG is ranked in the bottom seven countries in both Investment Attractiveness and Policy Perception.

In 2018, PNG ranked 41st out of 83 jurisdictions in the Investment Attractiveness Index and has now slipped to 54th out of 62 jurisdictions. PNG has slipped from ranking 61st out of 83 jurisdictions in the Policy Perception Index in 2018 to a new low of 57th out of 62 jurisdictions in 2022.

This decline in PNG’s standings is reflected in the significant drop off in exploration activity in PNG over the last 10 years. Records from the Mineral Resources Authority (MRA) indicate a steady decrease in the number of explorations licenses issued since 2012 from 177 Exploration Licenses (Els) granted and 379 applications awaiting processing to the June 2022 numbers of 158 granted and 112 applications.

The Global Survey assesses how mineral endowments and public policy factors such as taxation and regulatory uncertainty affect exploration investment. The survey was circulated electronically to approximately 1,966 individuals between August 23rd to December 30th, 2022. Survey responses have been tallied to rank provinces, states, and countries according to the extent that public policy factors encourage or discourage mining investment.

An overall Investment Attractiveness Index is constructed by combining the Best Practices Mineral Potential index, which rates regions based on their geologic attractiveness, and the Policy Perception Index, a composite index that measures the effects of government policy on attitudes toward exploration investment.

Neighbouring Australia continues to be the most attractive region in the world for mining investment. Western Australia (2nd), Northern Territory (6th) and South Australia (9th) appeared in the global top 10 on the Investment Attractiveness Index in this year’s survey. Zimbabwe ranks as the least attractive jurisdiction in the world for investment with PNG slightly higher.

The ranking is a result of the survey responses from participants comprising of managers, executives mainly company presidents around the world in companies involved in mining exploration, development, and other related activities. All these respondents indicated that PNG’s legal system, infrastructure, political stability, and quality of the geological database are the main policy factors deterring investment.

Alarmingly, the report is an indication of how low PNG ranks globally, in terms of investability in the mining sector as the survey was designed to identify countries that have the most attractive policies for encouraging investment in mining exploration. And countries that investors assess as relatively unattractive may therefore be prompted to consider reforms that would improve their ranking. The Global Survey can be found here https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2022 

Photo: Students from Tabubil International School with OTML Safety Mascots PITA and SES after a Road Safety Awareness.

Ok Tedi Mining Limited (OTML) staged a week-long awareness campaign in all its operational sites, of Fubilan/Folomian, Tabubil, Kiunga, Bige and Port Moresby focusing on ‘Light Vehicles and Mobile Equipment Safety’ during its National Mine Safety Week from April 30th to May 6th.

According to Manager Safety, Anna Ila, “There has been an increase in trends from Light Vehicles and Mobile Equipment incidents over the past months. The theme is timely as it complements our efforts in addressing the issue.”

OTML started off its National Mine Safety Week with a Fun Run/Walk on Sunday morning, 30th April, which saw over 200 participants from OTML and Business Partner employees.

OTML Managing Director and Chief Executive Officer Kedi Ilimbit said the theme for this year highlights the need for more awareness with employees and the public.

“The more awareness we do, the better we improve the outcome.”

“We need to prevent and eliminate light vehicle and mobile equipment fatalities and incidents because as human beings we are in control of light vehicles and mobile equipment, it is not the other way around so we should be able to operate these machines safely,” Mr Ilimbit said.

Speaking at the launch of the event on 30th April, OTML General Manager People and Capability, Mark Stone, emphasised the importance of working together with business partners to ensure OTML performs well in terms of safety.

Much of the awareness activities that were rolled out included the safety pre-start activities, school awareness on road safety, games, quizzes and a panel discussion on OTML’S Community Radio Station, Radio Fly that saw active participation from OTML Departments and Business Partner employees.

The Mineral Resources Authority (MRA) sanctioned week is recognised each year by mining companies and projects in PNG.

Geopolitics in the Indo-Pacific region

Looking at the Indo-Pacific region, observers came to realise that creating ties to it was quite a significant bilateral topic for developed democracies before Russia invaded Ukraine. Suddenly, these global economies shifted preferences and drew all their attention back to Europe.

Within this period when concentration had shifted, most asserted that the Indo-Pacific region was doing better, but reports have shown that Chinese dominance was consistent yet going unnoticed through maritime incursions and unnecessary military drills, all happening in the shadow of the Russia-Ukraine crisis.

Over several decades, China has become a substantial source of trade, aid, and infrastructure for developing Pacific Island countries, as it seeks to isolate Taiwan diplomatically and build its own set of global institutions. [1]

Biden’s visit to PNG

But later this month, US President Joe Biden is travelling to Papua New Guinea. This will be an historic event as it showcases the first United States leader to grace the shores of PNG since the Pacific nation gained independence.

Biden is stopping by Papua New Guinea for several hours on his way to Australia later this month, official and media reports have said, to highlight a renewed US commitment to the Pacific after inroads by China. [2]

Biden will be attending the Pacific Islands Forum in PNG, where 18 leaders of the region will join the leaders of Australia and New Zealand. Interestingly, Papua New Guinea will also host India’s Prime Minister Narendra Modi from May 22 to 23, according to PNG's foreign minister Justin Tkatchenko. [2]

In a front-page report on PNG's Post Courier, the newspaper stated that Biden would visit the capital of Port Moresby for three hours in May, without giving a specific date. But an official in the Papua New Guinea prime minister’s office confirmed that May 22 is the expected date of the visit if it goes ahead. [3]

While this looms as a step forward for PNG, critics have had their say, lashing out that this should show us something about the neglect of the US towards Pacific Island nations over the years.

The South Pacific was seen as a relative diplomatic backwater after World War II, but it is an increasingly important arena for powers to compete for commercial, political, and military influence -- and could prove vital in any possible military conflagration over Taiwan, Agence France-Presse reported.

Last month, US special envoy Joseph Yun said the United States was playing "catch-up" after years of relative neglect in which China's influence soared across the South Pacific.

"Let's face it, it is strategic competition between China and us," he told the Hudson Institute.

"Have we neglected the Pacific? The answer is yes.... We are trying to correct that quite a bit."

China recently signed a secretive security pact with Solomon Islands, east of Papua New Guinea, that could allow Chinese troops to be deployed or based there.

And a state-backed Chinese company won a contract in March to develop the international port in the capital Honiara, a major victory in Beijing's quest to gain a strategic toehold in the South Pacific.

Biden's trip may also put the finishing touches on a US-Papua New Guinea Defence Cooperation Agreement that would allow more joint training and the development of security infrastructure.

Washington is also working to establish a joint naval facility at Lombrum on PNG's Manus Island.

China, however, has been playing the long game in the region, and has now become the biggest bilateral lender in the Pacific, much bigger than America and Australia. It had been funding major projects throughout the region -- roads, airstrips, ports, strategic assets with civilian, business, and military uses to which China has an investment in all aspects of this sectors. [1]

China's current dominance in PNG

Over several decades, China has become a significant source of trade, business, infrastructure, and aid for PNG. In November 2018, Chinese President Xi Jinping visited Papua New Guinea for several days when Port Moresby hosted the Asia Pacific Economic Cooperation (APEC) summit. China also funded much of the infrastructure for the summit, such as new roads and the APEC conference center.

Earlier this year China had raised concerns about a proposed security agreement between Papua New Guinea and Australia, which has grown cold to its erstwhile biggest trade partner. PNG's former foreign affairs minister Justin Tkatchenko confirmed this in a press conference as he returned home from his official visit to China seeking development assistance for PNG. [4]

Tkatchenko stated that the Chinese Foreign Minister Qin Gang had raised China’s concerns on the proposed PNG-Australia Bilateral Security Treaty and its intended purposes when the two counterparts met.

Tkatchenko said: "Qin was seeking reassurances that the purported bilateral security arrangement with Australia was not in some way seeking to counter China’s influence in PNG and the Pacific."

Tkatchenko’s statement during the conference highlighted the balancing act for Pacific Island countries as China and the United States vie for influence in the vast ocean region. [4]

Last year China had pushed for even greater influence through an extensive security pact with 10 Pacific nations. Reports said it would have given China military bases in the region and even allowed them to deploy troops.

PNG along with other Pacific nations rejected it, and that might have given Biden some hope to cement the superpower's presence in the region. [4]

What is to be expected?

In fact, Joe Biden's Pacific pivot started last year when he hosted Pacific leaders in the White House in September as part of efforts to counter China's influence in the region.

During the meeting, the US President pledged financial aid and dispatched his Vice President Kamala Harris on a tour of the Pacific region. But now that he himself is on the job, the question remains if the newly established and forged relations will be enough for the US to cement its dominance in the region.

Critics have pointed out that Biden must be willing to commit to two main bilateral aspects.

Firstly, the US must commit to all financial aid that have been pledged towards the region as most small Pacific Islands need help to fight climate change, as it’s an existential threat for them and they need millions of dollars in investments to tackle it. [5]

Secondly, Biden needs to build a broad coalition, as the US alone cannot convince the Pacific region, but a broader alliance of democracies can -- which is why Indian PM Modi's presence can be a gamechanger. [5]

Over the years, many small Pacific Island nations have been let down by the US, Australia, and New Zealand, but India's inclusion may be different as it is a member of the so-called Global South and is now on the high table.

India's lessons and skills could be a key for the Pacific region, and in return it will be able to get some valuable diplomatic support, as every vote counts at the United Nations and the Pacific Forum alone has 18 votes.

All these meetings will conclude at the Opera House in Sydney where the Quad Leaders’ Summit will be held this year. The White House has said Biden will take part in a G7 leaders’ summit in Japan from May 19-21 and attend the May 24, Quad Leaders’ summit in Sydney with the leaders of Australia, Japan, and India.

 

References:

1) E-International Relations| The Emergence of the Indo-Pacific: Geopolitical Turn or Continuity? April 11 2023 https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.e-ir.info/2023/04/11/the-emergence-of-the-indo-pacific-geopolitical-turn-or-continuity

2) PNG Report 30th April 2023 https://www.pngreport.com › news Biden to visit Port Moresby in May

3) Post Courier May 1st 2023/ by Keneath. G https://postcourier.com.pg › envoy-...Envoy: Biden visit significant for PNG

4) Australian Financial Review Jan 12, 2023 https://www.afr.com › World › Asia The upside for PNG in Australia's and China's Pacific rivalry

5) US Indo-Pacific Strategy is Widely Criticized scspi.org| http://www.scspi.org › dtfx › us-ind...

6) The White House (.gov) https://www.whitehouse.gov › state... Statements and Releases Archives

Photo credit: Post Courier 

The National Trade Office (NTO) has recently unveiled Papua New Guinea's inaugural National Trade Portal and the Export Readiness Assessment Guidebook, which have garnered significant praise as vital resources for accessing trade information. These initiatives aim to provide small and medium enterprises (SMEs), traders, and investors with unparalleled opportunities to explore new markets, establish global connections, generate employment, and contribute to the economic prosperity of the country.

According to Richard Yakam, the Chief Trade Officer of the NTO, "Providing the right information to our private sector, especially our SMEs, is very important to our drive towards building a resilient and vibrant private sector for sustainable growth-based economic development."

The National Trade Portal serves as a comprehensive gateway to various trade facilitation agencies and commodity boards, offering invaluable insights into the acquisition of certificates, customs clearances, and other trade-related procedures. By centralizing this information, the platform simplifies and streamlines trade processes for businesses of all sizes.

In the same vein, the Export Readiness Assessment Guidebook is a crucial resource that assists SMEs in navigating the complexities of international trade. Written in simple language, it provides a step-by-step breakdown of the processes and documentation required for SMEs to engage in global markets.

Likewise, the investment guide seeks to provide essential information to potential foreign investors interested in Papua New Guinea. This comprehensive guide encompasses various aspects, such as the regulatory framework, tax regime, political and economic climate, and the country's investment potential.

"I applaud the NTO, a department under the Ministry of International Trade and Investment, for successfully delivering these key documents with limited budget support," praised Deputy Prime Minister John Rosso during the official event.

Funding for the trade portal was allocated from the 2022 development budget, aligning with Papua New Guinea's commitment to implementing Article 1-5 of the World Trade Organization's Trade Facilitation Agreement, signed by the country in 2016. This initiative aims to make trade information readily available to all stakeholders while ensuring transparency throughout the process.

By launching the National Trade Portal and the Export Readiness Assessment Guidebook, the NTO has taken a significant step towards enhancing trade facilitation, empowering SMEs, and attracting foreign investment in Papua New Guinea. These resources are expected to contribute to the country's economic development by creating an environment conducive to sustainable growth.

Prime Minister James Marape recently announced that the Foreign Affairs Minister, the Honorable Justin Tkatchenko has stepped aside from his Ministerial portfolio with immediate effect.

This followed public uproar after a tiktok video from his daughter Savannah Tkatchenko was circulated widely on social media. The Minister’s defense of his daughter drew further harsh criticism from the public over the poor choice of words used to show his frustrations.

The Prime Minister announced that he will oversee the Ministry of Foreign Affairs in the interim, and that includes making sure that the preparation towards hosting the Prime Minister of India, the President of the United States, the Prime Minister of Fiji, and all other Pacific Island leaders go ahead as planned.

“I want to commend the Minister for putting the interest of the country ahead of his own. I also want to apologise to his family, and especially his daughter Savannah for the traumatic experience over the last couple of days. No woman deserves to be treated the way Savannah was treated over the last few days”.

The Prime Minister acknowledged that the Minister did what any father would do, but his responsibility as an elected leader and a state minister required that his conduct and words must remain exemplary and above board at all times.

“In that regard I announce to the nation that I will take charge of the foreign affairs ministry and ensure that all the preparations for the upcoming historical visits remain on track in the next few days until our first visitor touches down on Thursday, 18 May 2023.”

The Prime Minister also thanked Minister Tkachenko for the preparation work done thus far and said he will ensure that all work is progressed with a multiagency effort so that we make our country proud when our visitors come on shore beginning next week.

Photo: PM Marape and Acting Minister for Commerce and Industry Hon. Soroi Eoe with the National Gold Bullion Policy 2023.-PM’s Office Media

Prime Minister Hon. James Marape says the landmark National Gold Bullion Policy 2023 complements his Government’s vision to fully industrialise the economy.

He said this on May 12, 2023 when launching the comprehensive policy in front of a fullhouse crowd in Port Moresby. PM Marape was accompanied by Acting Minister for Commerce and Industry, Hon. Soroi Eoe, whose department was responsible for drawing up the policy

PM Marape assured small-scale mining operators that the policy was not intended to disrupt or undermine their operations, but provide opportunities for greater benefits.

The policy provides a framework that will encourage the accumulation of the national wealth through extraction, production, storing and trading of gold.

The State’s participation in Papua New Guinea’s gold industry is only limited under the current royalty-tax regime with foreign-owned mines in PNG. The Government, therefore, is keen to rebalance the sector towards a greater public ownership of mines, undertaking explorations, engaging in mining activities, and supporting this policy for refining, minting, and trading of State-owned gold. Through this policy, the Government will provide a regulatory framework and build a vibrant domestic gold bullion ecosystem to create sustainable wealth to improve quality of life and the socio-economic status of its population.

“This policy complements my Government’s intentions to fully industrialise our economy by harvesting and adding value to our vast natural resources,” PM Marape said.

“Since the early days of gold prospecting and gold mining, our economy has grown, and so too have the challenges facing the gold industry. The National Gold Bullion Policy represents a significant step forward in the responsible and sustainable management of PNG’s gold resources. It represents a significant opportunity for us to maximise the value of our gold resources for the benefit of our people.”

PM Marape said the National Gold Bullion Policy would, among others:

• Aim to address downstream processing of core gold into bullion bars and promote the trading of the bullion bars through a transparent and accountable process in the country;
• Create a more-transparent and efficient process for the sale and export pf gold, ensuring that all gold produced in the county is refined onshore into bullion;
• Establish a competent domestic gold bullion programme to refine PNG’s high-grade gold;
• Advocate for establishment of a gold refinery that meets London Gold Bullion Standards; and
• Work towards getting more gold in PNG to be processed in the country

Photo: PM Marape meeting with the Korean delegation on Friday.-PM’s Office Media

Prime Minister and Acting Foreign Affairs Minister Hon. James Marape says relations between Republic of Korea and Papua New Guinea are “very important”.

He said this was exemplified by trade between the two countries worth worth US$1.8 billion (K6.33 billion) in 2022, a massive 240 per cent increase from 2021.

PM Marape confirmed that he would attend the first Korea-Pacific Islands Summit in Seoul later this month, to discuss issues of climate change as well as furthering bilateral relations. He pledged PNG’s support to host World Expo2030 in Busan.

PM Marape said this after a high-level meeting with Members of the Republic of Korea Assembly in Port Moresby on Friday (May 12, 2023). The delegation was led by Chairman of Foreign Affairs and Unification Committee Kim Tae Ho, and comprised of Vice-Chairperson Lee Jae Jung and committee members Cheol Soo and Woo Sangho.

“At the end of this month, I will visit Korea’s lovely capital, Seoul, with other Pacific leaders,” he said.

“I am happy that this delegation has visited our country, and will reciprocate with a visit to their country, to further strengthen our relations.”

PM Marape said the big increase in trade between Korea and PNG had not gone unnoticed by his Government, and there was room for even more growth.

“I want to offer PNG as an investment destination for Korean companies, as well as for our producers to export to Korea’s markets,” he said.

“We have energy sources; we have raw materials. My Government is pushing for downstream processing and we invite companies in relevant industries in Korea to come into our Special Economic Zones (SEZs).

“Our GDP (gross domestic product) is well-placed to expand rapidly in the next 10 to 15 years, based on the resources we have, so we are inviting companies from friends of PNG – including Korea – to come and do business here.”

Photo: PM Marape in discussions with Indian High Commissioner to PNG H.E. Imbasekar Sundaramurhti and Chief Liaison Officer H.E. Visvas Sapkal.-PM’s Office Media

Prime Minister and Acting Foreign Affairs Minister Hon. James Marape says Papua New Guinea is ready to host Indian Prime Minister Hon. Narendra Modi from May 21-22.

He said this after a high-level meeting with Indian High Commissioner to PNG H.E. Imbasekar Sundaramurhti and Chief Liaison Officer H.E. Visvas Sapkal, on Friday, May 12, 2023, to discuss preparations for the visit.

PM Marape said PM Modi would be given a red-carpet welcome with a 19-gun salute when his plane lands in Port Moresby on the evening of Sunday, May 21.

“He (PM Modi) will then meet with members of the Indian community in Port Moresby,” he said.

“The next morning (Monday, May 22), he will go to Government House, to pay a courtesy call on Governor-General Sir Bob Dadae.

“At 9.15am, PM Modi will have a bilateral meeting with me. After that, from 10am-12pm, he will meet Pacific leaders at the Forum for India-Pacific Islands Cooperation (FIPIC) Summit.

“After lunch, PM Modi will have another meeting, and then depart to give us ample time to prepare to meet US President Joe Biden.”

The National Executive Council has endorsed possible deliverables to be formalised when PM Modi visits.

PM Marape said some of the possible deliverables include:

• A Memorandum-of-Understanding (MOU) on Cooperation in Micro Small to Medium Enterprises (MSMES) between India and PNG;
• Reciprocal visa-on -arrival arrangements (PNG is benefiting from that at international airports in India);
• Visa exemption agreement for diplomatic and official passport holders;
• Cultural exchange programme (CEP);
• MOU between election commissions of India and PNG;
• MOU between State-owned Indian broadcaster Prasar Bharati and National Broadcasting Corporation PNG;
• MOU on foreign office consultation;
• MOU on Information and Communication Technology cooperation; and
• Various proposals on assistance to be given by India to PNG.

The non-implemented MOUs are:

• MOU on US$100 million line of credit from Exim Bank of India signed in April 2016 for the construction of Madang-Baiyer road and Kimbe-Hoskins Road;
• MOU on cooperation in the fields of health care and medical science signed in April 2016; and
• MOU on the US$150 million Line of Credit signed in September 2019 at the FIPIC Summit.

“Cabinet has directed the Department of Foreign Affairs to liaise with relevant sectoral agencies and departments to ensure the above deliverables are ready on time to be announced during my meeting with Prime Minister Modi,” PM Marape said.

“Cabinet also directed the departments of Treasury, Works and Health to furnish reports of non-implemented MOUs signed with India and submit to my Office by Wednesday, May 17, 2023.”

After years of neglect, the Central Governor's office of Central Province has been renovated under the leadership of Central Governor Honorable Rufina Peter. The inauguration took place on May 5th, 2023, at the Central Provincial Government office in Konedobu.

"When I first took office, the two places that I inspected were the Governors office of Central Province and the residents of Central Governor's office, which were in a state of disrepair and not conducive to work and live in," said Governor Rufina Peter.

"At last year's Provincial Executive Meeting, we allocated Two Million Kina to renovate the Administration office and the Central Governor's Residence."

Governor Rufina Peter expressed her commitment to providing prudent leadership in serving the people of Central Province and establishing it as an attractive destination for potential investors and development.

The occasion was attended by Parliament members of Central Province, senior leaders of Central Province, and international dignitaries. Deputy Head of Mission, Australian High Commission Dr. Joanne Loundes, spoke about the Central Governor's request for assistance in relocating and building a proper office in a more spacious area to accommodate the entire workforce of the Central Province Government. She assured the Governor that her request would be forwarded to the Australian High Commission for possible assistance.

Mrs. Irina Pruidze, Chief Technical Advisor UNDP, emphasized the role of UNDP in promoting women's leadership and capacity building, particularly in fostering good and sustainable governance. She pledged UNDP's support in the construction of the Central Provincial Assembly and the Central Administration Office.

Honorable Ano Pala, representing the Central Provincial Government Member for Rigo, expressed gratitude to Governor Rufina Peter for her exemplary leadership and milestone achievement in improving the administration of Central Province. He acknowledged Central Province as a peaceful and welcoming region, which is an essential quality for welcoming development.

During the event, awards were presented to staff members for their outstanding performance in the Central Provincial Government's Administration. This initiative aimed to boost the morale of public servants in Central Province and encourage them to provide meaningful service to the people.

ExxonMobil has appointed Tera Shandro, currently Senior Opportunity Evaluation Advisor to the ExxonMobil CEO & Management Committee, as its new Chairperson and Managing Director at ExxonMobil PNG Limited.

Shandro takes over from outgoing Chairman and Managing Director, Peter Larden, who will become the Senior Upstream & Low Carbon Solutions Advisor to the Exxon Mobil Corporation CEO & Management Committee in Dallas, Texas.

Since joining ExxonMobil’s Canadian affiliate Imperial Oil in 2003, Shandro has held both global Upstream and Downstream senior roles across engineering, research, operations, business planning

and finance. She brings to PNG significant capital project execution experience in both Canada and the United States.

“Tera is a people-first leader who will bring broad international expertise and perspective to PNG,” said Larden.

“She is uniquely qualified to drive ExxonMobil’s continued growth in Papua New Guinea.”

Appointed to PNG in March 2021, Larden's leadership has resulted in the achievement of multiple major milestones. The PNG LNG Project recorded two of its safest years on record, with the LNG

Plant marking nine consecutive years without a Lost Time Incident.

The Angore Project recommenced and is now on track to begin production in 2024.

In collaboration with the PNG Government, he secured the successful execution of the P’nyang LNG Project Gas Agreement, and progressed Papua LNG Project FEED entry based on an enhanced downstream concept.

“Two years passes quickly, especially when you reflect on all the amazing things that we have collectively achieved,” Larden said.

“Thank you to our stakeholders for your partnership, I am deeply

grateful for this opportunity to have led a world-class project that continues to redefine global benchmarks.

“To my ExxonMobil PNG wanwoks I am honored to have worked with a team that delivers beyond all expectations. Because of you, my family and I depart PNG with fond memories and lifelong friendships.”

Photo: Mrs Iarume with RJI Manager Pat Niuni at the Aumbi lodge.

In a district, so fragmented by lawlessness and an absence of government service and community leadership, few individual leaders in Porgera who have been on the ground trying to maintain hope for the people are now feeling that glimmer of hope begin to diminish as community and local stakeholder efforts continue to fall over toward resolving the Nomali and Aiyala conflict.

Local female leader, business woman and President of the Porgera Women In Business (WiB), Elizabeth Iarume has called for a higher level of government intervention and leadership to resolve the ongoing tribal conflict in Porgera.

Mrs Iarume expressed this week that if there was ever a time Porgera needed real leadership, it was now.

“The fighting has escalated and guns rule by day and night here in Porgera. Innocent lives taken, communities displaced and homes and properties in the thousands destroyed, for how long?

She said despite community and stakeholder efforts such as those of the local law enforcement, churches, Restoring Justice Initiative (RJI), Voluntary Crisis Management Committee, external security deployment and others to stop the fighting and establish peace, the lawlessness continues to escalate.

“We need a higher level of leadership to come in and take control of the situation. We need the State, the Provincial Government to also come in and participate. If we want to stop this, we have to look at the root cause and everybody should be involved. The State, Provincial Government, landowners, PJV, etc.  How do we all fix this? We cannot work in isolation and try to do this by ourselves.

“We can go on fighting over the shares and benefits of the New Porgera mine  but all of these will come later or not at all if we don’t fix and stabilise law and order in this Valley,” Mrs Iarume expressed.

Similar concerns were raised by the Porgera Urban Town Councilor Peter Mark Malipu who lost his son in the tribal conflict at Paiam last year.

Cr. Malipu said the District Administration must function and be present on the ground to provide the link between the community and the upper levels of government.

“We have a leadership crisis on the ground. Instead of uniting for a common cause to fight the lawlessness, leaders are instead infighting and where does that leave the people?

“The district leadership needs to be present. It needs to monitor and report on the situation on the ground to government for us to get real help,’’ Councillor Malipu said.

Both Mrs Iarume and Councillor Malipu have acknowledged the ongoing efforts of the RJI in facilitating and providing support toward the peace and restoration efforts in the valley and for providing a sense of hope for the communities in the absence of local leadership and the rule of law.

Photo from left to right: Luke Liria (KPHL), Richard Kassman (TotalEnergies), Wapu Sonk (KPHL), Jean Marc Noiray (TotalEnergies), Marie-Alix Dognin (Total Energies), Evan Shellshear (UBIDY). Credit: Kumul Petroleum Holdings Limited

To increase job opportunities for Papua New Guineans, the country's national petroleum frontrunner Kumul Petroleum Holdings Limited (KPHL) is aiming to reduce the breach for the recruitment of potential national candidates for major resource projects and industrial sectors within the country.

In a recent Memorandum of Understanding signing in Port Moresby with one of PNG's major LNG operators, KPHL welcomed the commitment of TotalEnergies to support the unique nation-building platform WAN PNG.

The MoU was signed on Tuesday the 5th of May by TotalEnergies with a sponsorship of K250,000, making PNGLNG a major sponsor for the launch of the WAN PNG recruitment platform developed by Ubidy, a global recruitment marketplace for employers, jointly with KPHL.

The platform is dedicated to expanding opportunities for local Papua New Guineans and increasing the development and employment of local PNG talent with the newfound opportunities in the country's booming resource and industrial sectors.

In his remarks during the signing, managing director for KPHL Wapu Sonk said they have previously learnt from past instances in the PNG LNG project that job participants within the sector faced significant difficulties when using different recruitment platforms.

This had influenced and prompted the state entity to establish WAN PNG, which is a national career database and career portal.

"What we did was to build from lessons learnt in the PNG LNG project where we have different people processing the different applicants. We wanted to invest in a platform that every Papua New Guinean will register their interest ahead of time for jobs," he said.

"KPHL has identified an opportunity to assist petroleum and other industries’ development and had established the WAN PNG portal. Similar to our support of Kumul Petroleum Academy, (and) plans for a fabrication facility and construction academy, we have a responsibility to play a much bigger role in the industry than just passively holding the State equity in petroleum developments," Mr Sonk said.

The platform is managed by KPHL to increase the sustainable employment of local talent. This commitment by TotalEnergies demonstrates their intention to maximise national content in this LNG project with respect to employment of qualified Papua New Guineans during construction and operation, he added.

"The platform will provide a clear pathway to employment no matter whether one is a student, school leaver, university graduate, employed or unemployed. It will provide access to training, life skills, career advice and employment opportunities," Mr Sonk said.

An official and representative of TotalEnergies expressed during the signing of the MoU that the firm is very glad to contribute to the platform, mostly to the rollout and the expansion of such an important tool for development.

"We understand that this is such an important aspect to bring out competency towards the development of the Papua LNG project," the official said.

KPHL's strategic vision for the future includes investment in initiatives that serve to diversify the economy beyond the extractive industry, in which the establishment of WAN PNG is part of the strategy to build a foundation for broadening employment opportunity across regions and industry sectors throughout the nation.

The development has shown that Kumul Petroleum and its partners recognize their responsibility as a National Oil Company to deliver greater prosperity to the people of Papua New Guinea.