They will be discussing a range of issues that are already being put forward by officials from each economy.
“I know today many of you will be leaving our shores but let me say that we are very grateful for your visit," says PM O'Neill.
He added the leaders' visit had given hope to the people of PNG.
"In doing so, it will continue to enhance our involvement of our own respective countries in our economies with challenges ahead of us."
The leaders are now having their closed-door discussions.