Record 2015 Budget and higher deficit, Sime Darby happy with 51% of New Britain Palm Oil and Marengo Mining raises funds for drilling program. Your weekly digest of the latest business news.

Treasurer Patrick Pruaitch has delivered a record K16 billion Budget for 2105, with a K2.272 billion deficit, a debt reduction strategy and provisions for a sovereign wealth fund. Our full report here.

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Treasurer Patrick Pruaitch at a post Budget breakfast briefing

The CEO of Sime Darby, Tan Sri Mohd Bakke Salleh, says the company will be happy with a controlling 51% stake in New Britain Palm Oil Ltd (NBPOL), and that the O’Neill government plans to increase its shareholding from 18% to 30%.

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Junior explorer Marengo Mining Ltd has raised US$7.5 million to fund a drilling program at the Yandera copper project in Madang Province of Papua New Guinea. The company is working to increase geological knowledge of the site and will commence the drilling program immediately, it announced.

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InterOil Corp has delivered a net profit of US$353.9 million for the nine months to end September, an improvement on the US$15.5 million net loss in the corresponding period a year ago. The company said the result was driven by the sale of its interest in PRL 15 to Total S.A. and the sale of the refinery and downstream business to Puma Energy.

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Prime Minister Peter O’Neill says the K3 billion UBS loan used to buy 10.1% of shares in Oil Search is in the best interest of the country and people. His comments follow a request by Public Prosecutor Pondros Kaluwin requested Chief Justice Sir Salamo Injia to set up a leadership tribunal to investigate O’Neill’s involvement in the loan.

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Frontier Resources Ltd has completed diamond drilling at the upper zone of its Swit Kia gold project in Hela Province. The company says six holes were drilled and provided a good cross section through the upper zone, however, the program was terminated due to logistical problems and field durations.

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Private company PIE Holdings has invested A$18 million into Kina Petroleum Ltd, taking about 20% of the company. President and Chief Executive Officer Phil Mulacek, former CEO of InterOil, says the investment establishes a better exploration and oil and gas team in the country.

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Train 1at the massive PNG LNG gas plant north-west of Port Moresby. Credit: ExxonMobil

Energy researcher Wood Mackenzie believes there will be a ramp up of 70 million tonnes per annum of liquefied natural gas (LNG) supply over the period to 2019 on the back of new production from Papua New Guinea and Australia.

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RD Tuna Canners Ltd says its business licence will not expire next month, but it must renew an agreement with the state instead. Managing director Pedro Celso has clarified the company’s position following concerns from locals in Madang who rely on the company to sustain their livelihood.

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Shareholders in the junior miner, Quintessential Resources, which owns several gold and copper tenements in New Britain province, will vote next month on taking over technology company, Yonder and Beyond, which specialises in mobile, technology and entertainment. QR will retain its tenements, but directors have warned shareholders: ‘There can be no assurances that the company will have sufficient capital resources, or that it will be able to obtain additional resources on terms acceptable to the company or at all’.

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And a second junior explorer, Goldminex Resources, has announced a change of strategic direction with the acquisition of financial technology and e-learning business, Enzumo Group. Goldminex holds five Exploration Licences and two Exploration Licence Applications covering about 864 square kilometres  in the Owen Stanley ranges.

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The PNG Games in Lae is providing a boon for local businesses. Post Courier reporters say there are long queues, particularly at food counters, although one shop has offered discounts of up to 75% on some sporting goods.

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Airlines PNG

Airlines PNG shareholders meet next month to approve the company’s proposed capital restructuring. The airline is also looking at acquiring a total of six ATR 72-600 aircrafts over the next three years as part of its restructuring plan.

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French president Francois Hollande has announced funding for Pacific nations to help restore ecosystems affected by climate change. During a visit to New Caledonia, Hollande explained that France had particular responsibility to address climate change in the region.