Prime Minister Marape announces that after successful negotiations an agreement has been reached for the Pasca A Offshore Petroleum Project, Barrick Niugini lodges an application for Judicial Review of the purported grant of a special mining lease to Kumul Minerals Holdings and Bougainville’s new president. The business news you need to kickstart your week.

Flaring at Twinza’s offshore well. Credit: PNG Loop

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After ‘intensive negotiations between the State Negotiation Team and Twinza Oil’ an agreement has been reached to move forward with the development of the PASCA project, Prime Minister James Marape announced last week. Under the terms, the State ‘will achieve between 61 per cent and 65 per cent of economic benefits, early revenue, provincial and direct economic benefits through a two per cent Development Levy and royalties of two per cent of gross revenue, access to LPG discounted by 30 per cent for national consumption at five per cent, guaranteed, and a commitment to develop a detailed National Content Plan.’ In a statement, Marape said that the basis of this negotiation could inform other upcoming negotiations. (PNG Office of the Prime Minister)

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Barrick (Niugini) Ltd (BNL) has lodged an application for Judicial Review of the purported grant of a Special Mining Lease to Kumul Minerals Holdings Limited (KMHL) in August. In a press release, BNL said: ‘BNL notes that the Special Mining Lease purportedly granted to KMHL is asserted to cover areas of land which are already the subject of valid BNL tenements. As such, the area was not available for grant at the time the Government purported to award KMHL an SML covering that land.’ (Porgera Joint Venture)

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The Morobe Provincial Government and the Babuaf landowners of the Wafi-Golpu site have signed a Memorandum of Understanding to work towards gaining maximum benefits from the Wafi-Golpu project. (EMTV)

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SMEs

East New Britain’s SMEs will have access to the K10 million that will be parked by the end of the year under the East New Britain Savings and Loan Society. Governor Nakikus Konga told The National that after the funds are parked away people ‘can go and borrow money to support their small business.’ He also said that ‘it has not been an easy task for me, especially with the economical and financial constraints the nation is going through, which was a burden on service delivery in the province.’ (The National)

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Small businesses with a turnover of K50,000 or below will have to pay a K4000 turnover tax once in a year. This comes as part of the new small business tax regime that the Internal Revenue Commission (IRC) is planning to roll out. Sam Koim, Internal Revenue Commissioner, further explained: ‘It’s a small subscription tax, or annual subscription, so those are the things that we would like to roll it out to bring the untaxed into the tax regime so that everyone participates in sharing the burden of developing this country.’ (The National)

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Bank South Pacific’s Robin Fleming. Credit: BAI

The State has signed a Memorandum of Agreement with Bank South Pacific (BSP) and the National Development Bank for K200 million. BSP signed the agreement to make K100 million available to small to medium enterprises with an interest rate of five per cent. The National Development Bank will receive K80 million and will lend it at an interest rate of four per cent. BSP’s Chief Executive Officer, Robin Fleming, reportedly said that ‘the bank will start receiving applications for the BSP SME credit enhancement loan when they receive the actual money.’ (Post-Courier)

Banking & finance

After weeks of speculation, Kina Bank’s Chief Executive Officer Greg Pawson reportedly told The National that Kina is not considering acquiring Westpac’s Pacific operations. ‘We haven’t considered an acquisition of them, but if they reached out, we would be happy to have discussions.

‘But bear in mind, we have just completed the ANZ acquisition so we’ve got a national footprint now and we don’t get another one.’ (The National)

Aviation

On 29 September, Link PNG will commence new regular services between Mount Hagen and Western Highlands Province, and Kiunga, Western Province. (Air Niugini)

Photograph of the week

President Ishmael Toroama. Credit: ABG

Ishmael Toroama, the new President of Bougainville, was sworn in by PNG Supreme Court Justice, Sir Kina Bona, in Buka last week.

Toroama is heading a caretaker team until all MPs elected are sworn in.

Bougainville’s new president was a freedom fighter with the Bougainville Revolutionary Army and his election has put an end to the 10-year tenure of John Momis. (RNZ)