Moody’s downgrades Papua New Guinea ratings, National Broadband Network to be launched by year’s end, and warnings of a ‘crisis’ in the oil services industry. Your weekly digest of the latest business news.

The credit ratings agency Moody’s has downgraded Papua New Guinea’s foreign currency and local currency issuer ratings from B1 to B2. Moody’s says heightened balance of payments pressures have put strains on foreign currency reserves and will continue to do so for two years. Another driver of the downgrade is the government’s persistent unfavourable domestic funding conditions. Moody’s says the outlook on the ratings is stable with medium term economic growth prospects remaining robust.

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The National Broadband Network (NBN) is set to be launched before the end of the year. The US$203 million (K637 million) project, funded primarily through China Exim Bank, was commissioned by Telikom PNG and built in partnership with Chinese telecommunications company, Huawei.

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The head of the world’s largest provider of services to oilfields has warned of a “full-scale crisis” as the industry is lashed by an unprecedented slump in trading conditions. Paal Kibsgaard, Chairman and Chief Executive of Schlumberger has announced a further 8,000 job cuts to the 34,000 already cut since 2014.

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The development of small-to-medium enterprises and their integration into global value chains will feature prominently when PNG hosts APEC 2018, says PNG’s APEC Ambassador, Ivan Pomaleu.

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E-commerce is set to become key for small-to-medium enterprises globally in the coming years, according to IT consultant, Diane Wang, speaking at an E-commerce in SME summit in Port Moresby this week. Google representative, Elodie Benoist, urged entrepreneurs who are using technological channels to pay more attention to mobile devices because they are a more effective tool in e-commerce.

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The East New Britain Development Corporation’s William Lamur

The East New Britain Development Corporation has spent about K17 million in refurbishing two of its properties in Port Moresby. Chairman William Lamur says its properties at Koki and Harbour City are being leased to the CPL Group.

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CPL Group has reported an increase in sales from K401.11 million in 2014 to K462.08 million last year. In its 2015 annual report, the company recorded a net profit-after-tax for the parent company of K7.35 million (K7.55 million in 2014). The company has also opened its 7^th Stop N Shop supermarket in Port Moresby at Koki, with another to be opened next month at Harbour City.

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New Guinea Energy says it will be de-listing from the Port Moresby Stock Exchange in June because it has been experiencing minimal trading.

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Oil Search Managing Director Peter Botten has told an APEC Business Advisory Council (ABAC) meeting in Port Moresby this week that the petroleum industry has invested more than US$53 billion (K127.8 billion) in the country, up to the end of 2015. He said PNG was unique in that it allowed landowners to be directly involved in these large scale mining and petroleum projects, something that is not seen elsewhere globally.

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The ratings agency Standard & Poor’s has issued a revised ratings assessment of Bank South Pacific. It has continued to affirm its ‘B+’ long-term and “B” short term ratings outlook on the Bank. The long-term issuer credit rating outlook for BSP remains negative.

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Australian liquidators have been appointed to chase down about A$200 million (K484 million) in debts owed by Clive Palmer’s failed Queensland Nickel enterprise.

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French media reports say the government will lend $US330 million (K1.04 billion) to stave off the collapse of the loss-making New Caledonian SLN Nickel company. The reports say the rescue plan will be announced in Noumea later this week by French prime minister, Manuel Valls.

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And finally, border officials say they stumbled into a smuggling network between Papua New Guinea and Indonesia confiscating K34,000 worth of goods and medicines in West Sepik. Goods include 12 cartons of chicken eggs, 25 frozen chickens, 20 boxes of intravenous glucose water and 44 cartons of cigarettes.