Chief Secretary says 2017 will be very tough, moratorium on beche-de-mer may be lifted soon, and PNG LNG spends K12 billion on local services. Your weekly digest of the latest business news.

Chief Secretary Isaac Lupari has warned of drastic cuts in the 2017 National Budget, according to The National. He reportedly said the nation will have to brace for the worst next year because conditions will be very tough. Lupari says some public offices will not be included in the 2017 budget, adding ‘the public service has grown out of proportion’.

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The National Fisheries Authority will meet in the next few days to consider lifting a moratorium on the harvesting of beche-de-mer, or sea cucumber, the Post-Courier reports. The PNG Government introduced the moratorium in 2009 because of over-fishing. A four-year, A$1.7 million (K3.6 million) project began earlier this year to map out how to revive Papua New Guinea’s dormant sea cucumber industry.

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Chief Secretary, Isaac Lupari. Credit: Loop

ExxonMobil Managing Director Andrew Barry says that more than K12 billion has been spent on services provided by PNG companies, including more than K3 billion spent directly with landowner companies, the Post Courier reports. Barry reportedly said they are now trying to engage local suppliers for a range of production-related activities.

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Prime Minister Peter O’Neill says the National Executive Council has approved a discounted Option Exercise Price, which will enable landowner groups and provincial governments to counter the effects of lower than expected gas prices in the future. He says Kumul Petroleum will be able to offer vendor financing for landowner groups and provincial governments to buy discounted shares in Kroton, the company overseeing the State’s interest in the PNG LNG project.

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Kina Securities has won the mandate to provide fund administration services to the National Superannuation Fund (NASFUND). NASFUND has 543,000 members, PNG’s largest membership base. It oversees total assets of over K4.09 billion.

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Oil Search Managing Director Peter Botten has been recognised for the second time by the Harvard Business Review as one of the world’s 100 top performing CEOs.

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Brisbane-based Highlands Pacific and joint venture partner Anglo American have begun a US$3 million (K9.5 million) drill program at the Star Mountains copper-gold project in West Sepik Province. The project is expected to finish in January, 2017.

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Coppermoly has signed an agreement with Quest Exploration Drilling to carry out exploratory work at the Mt Nakru copper-gold project in New Britain Island. The drilling aims to define the extension of Nakru mineralisation system.

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(l-r) Clarke Energy’s Kong Leong, GE’s Peter Loko, Clarke Energy’s Mike Dixon, Credit: Clarke Energy

British company, Clarke Energy, is the latest international entity to enter the PNG resources sector after GE awarded Clarke Energy distributor and service provider status for their Jenbacher, Waukesha and diesel engine products in PNG.

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The Institute of Banking and Business Management in Port Moresby will begin offering an Australian Bachelor in Business program in 2017, reports EMTV. The Executive Director of the IBBM, Sweta Sud, says the program allows for Papua New Guineans to study for an Australian recognised degree program, without having to travel to Australia and incur the steep costs of living and studying there.

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The EU has approved a €3.5 million (K12.2 million) project to improve the competitiveness of small cocoa producers in the Pacific. The three-year initiative will implement pilot projects in selected countries.

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Contemporary art on display in Brisbane. Credit: SBS

And finally, the largest exhibition of PNG contemporary art ever staged in Australia has opened in Brisbane at the Queensland Art Gallery. Among the artists’ work on display is that of Taloi Havini, the daughter of Bougainville independence fighter Moses Havini, whose work includes photographs of the polluted Panguna mine site and ceramics representing traditional shell money.