O’Neill seeks judicial review of Ombudsman’s direction to freeze loan for Oil Search shares, Treasurer predicts annual K10 billion boost from LNG, and food labelling must now be in English. Your weekly digest of the latest business news.

Prime Minister Peter O’Neill has announced that the government will seek a judicial review this week of an Ombudsman Commission direction to “freeze all further progress” on the government’s arrangement to borrow US $1.2 billion (K3 billion) from investment bank UBS for its 10.1 per cent stake in Oil Search. However, the PNG government has made its first interest payment of the loan.

* * *

Treasurer Patrick Pruaitch

Treasurer Patrick Pruaitch says export revenues will grow by some K10 billion to K12 billion (US $3.4 – 4.1 billion) in a full calendar year, now that LNG exports have begun. He predicts the economy will grow by an unprecedented 21%, but did not specify the timeframe.

* * *

The Independent Consumer and Competition Commission (ICCC) has banned foods not labelled in English. Acting CEO Elastus Geroro says ingredients, the name of the manufacturer and contact details, minimum weight and country of origin are key requirements. He says the ICCC will shortly commence a nationwide program of inspecting shops. 

* * *

A senior official from the Department of Minerals has admitted the government has no specific policy in place to make informed decisions regarding tax holidays. He said the government was currently granting tax holidays to certain investment companies without using any guidelines or policies.

* * *

Vanuatu-based Interchange has been granted a licence to bring a fibre-optic submarine cable to Port Moresby from Port Vila, linking PNG with Vanuatu and Solomon Islands. CEO Simon Fletcher told Business Advantage PNG the 3,000 km cable will deliver wholesale broadband, television and internet links for PNG retailers. Interchange recently built a 1,259 km fibre-optic cable between Vila and Suva.

* * *

Nautilus Minerals’ Mel Togolo. Credit: INA

Seafloor production tools for the Solwara 1 project are 90% complete with production expected in 2016, according to Nautilus Minerals‘ Country Manager Mel Togolo.

***

The Southern Highlands Chamber of Commerce president Berry Mini and the Provincial Business Coalition against Corruption chairman, Garry Kulangil, have called for an investigation on how the K25 million Provincial Services Improvement Funds have been used. The two leaders said some pictures shown in the 2013 annual report were completely different from the actual projects on the ground.

***

A United Nations’ agency has labelled PNG’s growing HIV and AIDS public health emergency a pandemic. UNAIDS’ Steve Kraus says people living in Port Moresby, Hela Province and Lae are most at risk.

* * *

The board of New Guinea Energy has agreed to a 50% drop in remuneration, while some staff have agreed to a salary and work hours reduction. Board Chairman Michael Arnett made the announcement at the company’s annual general meeting, describing 2013 as ‘a year of difficulty’, but expects ‘more positive news over the coming months’.

* * *

Clive Palmer. Credit: ABC

Australian mining magnate and politician Clive Palmer says a seismic survey of the Palmer Petroleum gasfield project in the Gulf of Papua is finished and his team is looking at drilling in the field, which he estimates could contain about 28 trillion cubic feet of gas—worth, he says, more than A$35 billion.

* * *

Horizon Oil has been awarded its Stanley gas project petroleum development licence, paving the way for Horizon’s sale of 40% of its PNG petroleum interests to Osaka Gas of Japan. That in turn meets a condition of the proposed merger with ROC Oil.

* * *

Cott Oil and Gas has received a concept study demonstrating that a LNG development for its Pandora Gas Field about 200 kms west of Port Moresby is technically and commercially feasible. Pandora has an estimated 800 billion cubic feet of gas. The plan involves a floating LNG vessel.

* * *

Gold miner Crater Gold is reporting continuing strong results from diamond drilling at its High Grade Zone project at Crater Mountain in Milne Bay. Managing Director Greg Starr says he believes that in its first year of operation, the company can produce 10,000 ounces of gold.

* * *

Beautfiying Port Moresby with street art ahead of 2015 Pacific Games (Credit: ABC)

Efforts are underway to beautify Port Moresby for the Pacific Games next year. An Australian-based artist has been teaching kids how to use stencils and spray cans to express themselves, and their work is providing a colourful platform to fight graffiti. 

* * *

A senior New Caledonian politician says after the latest acid spill, the Vale nickel plant should be closed and ore processing done elsewhere, possibly in Australia, New Zealand or Papua New Guinea. Demonstrators protesting against acid spills have caused US $34 million worth of damage to the plant.

* * *

New Zealand’s new ambassador for economic development in the Pacific will aim to find out the best economic and development opportunities in the region, including jobs. Prime Minister John Key says ‘the most significant thing we can do outside of education for the people of the Pacific is make sure they have an economic base’.