Total E&P’s MD outlines Papua LNG schedule, the Internal Revenue Commission signs Memorandum of Agreement with the SME Corporation and Air Niugini to resume services to Sydney. The business news you need today.

Prime Minister Marape, Total SA executives and ministers during the signing of Papua LNG in February 2021. Credit:

Infrastructure

PNG has received a US$325 million loan from the Asian Development Bank (ADB) to help fund road infrastructure in the Highlands region. The ADB’s Director General for the Pacific Leah Gutierrez and PNG’s Treasurer, Ian Ling-Stuckey, signed the agreement that will fund the upgrade of 71 bridges (41 two-lane and 30 single-lane) along the national Highlands Highway, between Nadzab Airport in Lae and Kagamuga Airport in Mount Hagen, hence increasing mobility for about three million people in the region. (ADB)

Resources

Prime Minister James Marape met with Santos CEO Kevin Gallagher and Oil Search CEO Peter Fredricson last week to discuss the merger of both companies. He said the deal between the two companies ‘must meet national interest.’

Petroleum Minister Kerenga Kua has been quoted as saying that ‘all things considered, the State would like to pick a portion of whatever Santos will make available in their rebalancing.

‘The Prime Minister is asking that the joint venture partners should all agree for the state to be given the first right of refusal to acquire some portion of that equity.’ (Reuters)

***

Total E & P Managing Director Jean-Marc Noiray, said that the much-anticipated Papua LNG project is scheduled to commence in 2027.

‘After three years of delay, we are again mobilising our project team, targeting front end engineering and design (FEED) entry through to 2022, final investment decision (FID) in the fourth quarter 2023 and start four years after in the fourth quarter of 2027,’ he told a business conference in Port Moresby last week.

The project that will mainly impact Gulf and Central provinces is expected to produce 5.6 million tonnes of liquefied natural gas (LNG) per year over 15 year.

SMEs

The Internal Revenue Commission (IRC) and the Small and Medium Enterprise Corporation have signed a Memorandum of Understanding to share resources to ensure tax compliance of small and medium enterprises in the country. Sam Koim, IRC Commissioner, said that ‘with this partnership we hope to move the unbanked into banking, where every individual can be able to pay tax.’ (Post-Courier)

National

After Australia announced that New South Wales (NSW) will open quarantine-free travel for fully-vaccinated international arriving passengers from 1 November, Air Niugini has opened sales from 1 November for its Monday Port Moresby to Sydney flight (PX001). The airline said in a statement that additional flights will depend on the number of passenger requesting services. Entry to NSW, however, does not guarantee entry to other Australian states and territories. (Air Niugini)

***

The proposals for the Gazelle Agro-Industrial Development Corporation and the Rabaul Tuna Export Processing Zone, two pilot projects under the PNG free trade zone development policy and strategic development plan, have been completed and are ready to be tabled in the National Executive Committee, reports The National. (The National)

Telecommunications

Reuters reported last week that the Australian telecommunications giant Telstra Corp Ltd ‘is close to completing a deal to buy the Pacific operations of telecommunications firm Digicel Group‘. The acquisition deal is in partnership with the Australian government and is considered a move to curtail China’s influence in the Pacific region. (Reuters)

Photographs of the week

This slideshow requires JavaScript.

Several SMEs, including Hannah’s Beauty Tool Box and Devine Management Services, showcased their organic products, crafts and services last week during a networking event at EmStret co-working space in Port Moresby with Adrian Weeks, Senior Trade Commissioner at the Australian Trade and Investment Commission. Weeks is responsible for assisting and connecting Australia with PNG and Solomon Island companies as well as looking for emerging opportunities.