LNG growth projects a focus for Oil Search, ANZ warns on PNG debt risk, and Barrick plans to offload Porgera mine. Your weekly digest of the latest business news.

Despite significantly lower commodity prices, Oil Search Ltd has lifted profits in the year to end December 2014 by 71.7% to US$353.22 million. To offset the falling value of oil, Oil Search says it has reprioritised its 2015 work program to focus on ‘high-returning core LNG growth projects’.

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The ANZ’s Pacific Quarterly analysis warns that if the anticipated income from asset sales of K2.5 billion fails to materialise, the country’s gross level of debt could exceed K10 billion. It says there is too much on short-term treasury bills and limited market participants. But it says the fall in oil prices is ‘not enough to derail the positive medium to long term view of PNG’s ongoing development’.

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Meanwhile, Prime Minister Peter O’Neill says there is no need to panic and there is no shortage of foreign currency, after Sports Minister Justini Tkatchenko claimed a lack of foreign reserves had slowed down work on the Pacific Games netball stadium. O’Neill says the Bank of PNG holds a record K5.6 billion (US$2.2 billion).

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The Porgera gold mine in Enga province. Credit: Barrick Gold Corp.

Canadian precious metals giant, Barrick Gold Corp, is investigating options to sell its majority share in the Porgera gold mine in Enga province. The company is aiming to reduce its debt position by at least US$3 billion in 2015 and, as part of that strategy, hopes to offload non-core assets, including Porgera, in which it owns a 95% share.

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The Papua, the PNG LNG project’s first custom-built ship, has arrived at the operation’s marine facilities in PNG to prepare for loading of its first cargo. The 172,000 cubic metre, 290-metre-long LNG carrier has entered service on a long-term charter with the project, providing LNG transportation to major customers in Asia.

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Papua New Guinea’s Indigenous Business Council has welcomed efforts to encourage participation of locals in small-to-medium level enterprises. Richard Maru, PNG Minister for Trade, Commerce and Industry, has slated a parliamentary bill that would require businesses under US$3.8 million to be restricted to Papua New Guineans. Port Moresby Chamber of Commerce and Industry President Ron Seddon says, while the Chamber is keen to promote local entrepreneurship, the plan ‘needs more thought’.

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The small and medium enterprises (SME) policy and master plan, which will aim to promote development of a competitive and sustainable SME sector, are still in their draft stages, according to the PNG Department of Trade Commerce and Industry.

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Australian-based St Barbara Ltd says it will still consider a third-party buying its Solomon Islands’ Gold Ridge gold mine on Guadalcanal, even though it is negotiating a sale to the new government.

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The Solwara-1 seabed project offshore PNG. Credit: Nautilus Minerals.

Nautilus Minerals Inc, which is developing the Solwara 1 seabed mining project offshore PNG, has announced that the commissioning and factory acceptance testing of its ‘third and final’ seafloor production tool has commenced.

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Santos Ltd has reported a A$935 million full-year loss as substantial asset write-downs impacted the company following a fall in the oil price. Despite the loss, CEO David Knox believes Santos made ‘significant progress in 2014’, with the early start-up of the PNG LNG project a key highlight.

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Highlands Pacific Ltd has exercised a right to begin receiving its share of operating income from the Ramu nickel project in Madang province, in which it holds 8.6%. The project achieved its first annual operating surplus of approximately US$67 million in 2014, according to operator, Metallurgical Corporation of China (MCC).

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Air Niugini plans to reduce airfares following the oil price crash.

Air Niugini says it will reduce its airfares in response to falling oil prices. This is the second time in 2015 that the airline has announced a reduction in prices.

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Canadian-based software company, Redknees Solution Inc, is supporting Digicel to offer PNG consumers with pre-paid electricity.

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The Anitua Group, a company owned by the people of Lihir Island in New Ireland province, has opened a new office in Port Moresby.

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The World Bank will next week consider a new US$50 million roading project in Fiji, as part of its re-engagement after Fiji’s return to democracy last year.

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Electoral officials have begun preparing for general elections due in mid-2015. Technical experts from Australia and NZ will work with Bougainville Electoral Commission staff in Buka, Arawa and Buin. The assistance will include training, election operations, the electoral roll database, logistics, procurement and voter awareness. The team will work in Bougainville for about four months, until the conclusion of the election period.

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Fiji Airways has registered a US$29.8 million profit before tax. Meanwhile the airline’s CEO Stefan Pichler has stepped down to take the same job at Air Berlin. He remains on the board.

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Solar energy is set to become the cheapest source of electricity in many parts of the world within the next 10 years, according to a German think tank, Agora Energiewende.

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Business connects at the Asia-Pacific Incentives and Meetings Expo.

The Asia-Pacific Incentives & Meetings Expos (AIME) has taken place in Melbourne, Australia this week. AIME is utilised as a place for business suppliers and buyers from the Asia-Pacific region, Australia and around the globe to connect and do business.

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And finally … the film Fifty Shades of Grey has been banned in Papua New Guinea after the censorship office refused to give the film a classification, due to its sexual content. An online campaign against the film has also encouraged potential filmgoers to donate the money that would be used to see the film to help victims of domestic abuse instead.