Oil Search cuts its 2019 capital spending budget, delays in the Wafi-Golpu project, and Bank South Pacific reports liquidity in Papua New Guinea’s banking sector has decreased. Your weekly digest of business news.

It’s been reported that Oil Search has cut its 2019 capital spending budget from US$545 million (K1.84 billion) – US$655 million (K2.21 billion) to US$500 million (K1.69 billion) – US$610 million (K2 billion). The reduction reflects ‘revised timings for FEED [front-end engineering and design] entry for LNG expansion in PNG and development activity on the Angore field’. (Financial Review)

***

Wafi-Golpu is a joint venture between Newcrest Mining Limited and Harmony Gold Mining Company Limited. Credit: Wafi-Golpu Joint Venture

Delays in the Wafi-Golpu project have led to the ‘release’ of several employees. The project has been halted due to a delay in the grant of a special mining lease, which was expected by 30 June.

‘The Wafi-Golpu Joint Venture has in turn delayed the planned work programme it has hoped to commence this year. This has necessitated the downsizing of the workforce.’ (The National).

***

According to The National, Bank South Pacific’s CEO Robin Fleming said that domestic liquidity across the banking sector has decreased to K19.9 billion from K21 billion in January 2018. Fleming said that these could be due to ‘the depletion of deposits with the biggest factor being the unavailability of foreign currency’.

***

Mayur Resources Limited has announced the appointment of Morgans Financial Limited and KPMG Corporate Finance to secure US$350 million (K1.18 billion) in project finance for its Central Cement and Lime Project in Port Moresby. (Finance News Network)

***

Papua New Guinea has become the 160th state party to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, otherwise known as the New York Convention.

The New York Convention is widely recognised as a foundation instrument of international arbitration. It requires courts of contracting States to give effect to arbitration agreements and to recognise and enforce awards made in other States, subject to specific limited exceptions. (United Nations)

***

Community on the RSE Scheme. Credit: Ministry of Business Innovation and Employment

New Zealand’s Recognised Seasonal Employers (RSE) Scheme, which employs Pacific and non-Pacific workers under the RSE Scheme, has helped boost employment and business expansion in rural areas in the country. According to a recent survey by New Zealand’s Ministry of Business Innovation and Employment, 96 per cent of RSEs employers agreed on the benefits of participating in the scheme, 45 per cent have expanded their business as a result of employing workers from the Pacific, and 47 per cent reported changes in how seasonal staff and managed and supervised. (LOOP)

***

A new business incubation centre has opened at Six Mile in PNG’s National Capital District. The K17 million centre has 160 kiosks and will be available for small and medium enterprises (SME) as well as professionals. (Post-Courier)

***

Discussions are now underway for the reopening of three rural airstrips in the Rigo LLG, Central Province. Central Province MP Lekwa Gure mentioned that the airstrips could help local communities access markets, basic goods and services.