Government seeking Budget support from World Bank, LNG partners seek huge savings by co-operating, Ok Tedi performing well after seven months. Your weekly digest of the latest business news.

The Government plans to get US$500 million (K1.6 billion) from the World Bank as budget support over the next three years, reports the Post Courier, quoting Treasury Secretary Dairi Vele. It is also plans to get US$300 million (K954 million) from the Asian Development Bank (ADB) for the health sector. Vele has told a meeting of heads of departments the Government is talking to the World Bank about the facility ‘which is purely budget support’.

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Cooperation in the development of the next phase of the liquefied natural gas (LNG) could see joint venture partners saving between US$2-3 billion (K6.5-K9.8 billion) in capital costs, and ongoing operating costs of US$120 million (K392.1 million) a year. Oil Search Managing Director Peter Botten told shareholders at the company’s AGM that discussions are already underway between the joint venture partners—Total, ExxonMobil and Oil Search—on how to bring the PNG LNG and Papua LNG projects together.

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Oil Search’s Peter Botten Source: Business Advantage International

Botten also told shareholders Oil Search has 10 trillion cubic feet (tcf) of undeveloped reserves, in addition to existing reserves which it is currently developing and processing. The Post-Courier reports he said drilling at the Elk/Antelope fields had been completed, while drilling in P’nyang would continue this year. He said these two reserves, when combined, had the potential to underwrite a two-train expansion.

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Ok Tedi Mining is optimistic this year after a strong return to production in 2016, following a seven month hiatus, says Managing Director Peter Graham. He told the Australia-PNG Business Council Forum that the mine has performed well, generating K2.1 billion from a 10-month production run.

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PNG has been invited to join the Beijing-based Asian Infrastructure Investment Bank (AIIB), a multilateral development bank that aims to support the building of infrastructure in the Asia-Pacific region. Loop PNG quotes the AIIB’s Head of Communications, Laurel Ostfield, saying the bank would consider funding climate change mitigation and adaptation projects.

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Export commodity prices continued to be relatively low during the December quarter, despite some improvement, according to the Governor of the Bank of PNG, Loi Bakani. He said this had affected government revenue and expenditure.

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An attempt by PanAust to win control of the board of Highlands Pacific fell through when shareholders voted in favour of Highland’s existing directors. PanAust is wholly owned by the Chinese government’s Guangdong Rising Asset Management Co Ltd (GRAM), which sought to remove three of Highlands’ five directors, and have them replaced with their nominees. The moves follows a dispute with Highlands over the scale and funding of the Frieda River project.

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Kina Petroleum has won a key licence extension and retained its prospects and leads in the relinquished areas of PPL 338.

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The new Reuben Taureka Highway. Credit: NCDC

The 11.2km Sir Reuben Taureka Highway, which runs from 6-Mile to Bautama in Central Province has opened. Known locally as Dogura Rd, the K167 million highway has been named after Sir Reuben Taureka, a medical doctor and one of the ministers in the first PNG government, from 1972 to 1975.

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Major electronics retailer CHM is likely to re-open its Tabari Place branch in Boroko after it was looted in the wake of a fire in late March, which resulted in a near total loss of merchandise. CHM was among several businesses which were looted and ransacked after the fire.

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Employment levels in Lae and Morobe province have fallen over the last five years, President of the Lae Chamber of Commerce and Industries Allan McLay has told the Post-Courier. He said, however, that companies are indicating they are confident that business will pick up in the next two quarters of the year.

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And finally, treasured dishes which have been locked up by Pacific families for generations are being introduced to diners in Auckland, reports RNZI. The newly-opened Kai Pasifika restaurant is the first Pacific cuisine restaurant to be established in New Zealand. It aims to boost trade from businesses across the region, using products which chef Robert Oliver says will help to make their menu authentic.