Papua LNG

BSP Group Chief Executive Officer,  Robin Fleming made the announcement at the BSP Annual General Meeting, while giving an update on BSP’s full year results for 2020 and first quarter results for 2021.

The bank’s listing on the Australian Stock Exchange will give them the opportunity to grow the business while ensuring stronger returns for their shareholders.

According to BSP Group Chairman, Sir Kostas Constantinou, BSP is on track to join the ASX in the first half of 2021.

Prime Minister James Marape says this assurance has been made to stakeholders in the mining and petroleum sectors.

The Prime Ministers revealed this when announcing the non-renewal of the Porgera Gold Mine Special Mining Lease.

Marape said the announcement of the non-renewal of the SML should not scare investors and stakeholders in the mining and petroleum sectors.  

During the launching of the World Bank Economic Update Report on PNG, World Bank Senior Economist for Papua New Guinea, Ilyas Sarsenov, said PNG’s economy in the future remains positive.

The delays in major resource projects means the mid-term will remain sluggish.

Western Governor, Taboi Awi Yoto, and North Fly MP, James Donald, announced in a joint statement their endorsement of the Prime Minister stance to stop negotiations and focus on other resource projects currently in the pipeline.

According to the statement the leaders said PNG was entitled to a fair deal. And after the PNG LNG Project, they expectied ExxonMobil and project partner, Oil Search, to display commercial fairness and reasonableness.

The leaders said the companies chose to discard these core virtues.

This is according to the ANZ’s Economic Update report of PNG.

ANZ projects an impressive GDP of 3.5 percent for this year, however, says no one should be carried away, as this is all coming from a rebound in gas production following the earthquake-induced disruptions in 2018.

Released on December 17^th, the ANZ report warns not to be misled by a strong GDP for 2019, stating the economy remains weak.

The report says the strong GDP is due to a rebound in gas production following the 2018 Highlands earthquake.

The landowners have demanded for a review into the oil and gas agreement signed by the previous government with the Gulf landowners.

The landowners of Baimuru in the Kikori district of Gulf Province, through their umbrella association, Purari Development Association, took out a court order, restraining the development of the Papua LNG Project.

Peter O’Neill thanked the Central Bank for their negotiations in this regard, saying this will address the foreign exchange (forex) issues faced by the country.

The Prime Minister said this at the signing of the Papua LNG Project Agreement.

“I wish to thank the Governor for the Central Bank about the negotiation we are having with project partners,  to give visibility so that we do not have foreign currency issues when we are exporting all these  resources out of the country; our currency must be stable.

The signing was supposed to take place on Friday, 5th April.

Prime Minister O'Neill told this newsroom that lawyers are still working on the final terms of the project.

The Papua LNG project, in Gulf Province, is projected to be much bigger than the first LNG project (PNG LNG) in the country.

However, some landowners recently filed a judicial review asking the court to identify the genuine landowners before the agreement is signed.

This is to ensure the state does not borrow to purchase equity in a project.

“The initial understanding we have with the second LNG and in particular Wafi-Golpu is that our participation in equity will be carried by the developer until the first export of either the gold and copper from Wafi-Golpu or in the second LNG Project, meaning we don’t have to borrow large sums of money that we are unable to repay.

Prime Minister Peter O’Neill said both projects, if approved, will bring in an investment of US$26 billion (K82.6 billion) and will have a significant injection into the economy of our country.

He said this in parliament on January 22^nd.

“In total there will be close to US$26 billion, which is close to K100 billion investment in the country and that will have a significant injection into the economy of our country,” said O’Neill.