PNGX to launch six indices, Oil Search reports third quarter results, and Geopacific Resources on track to fund Woodlark. Your weekly digest of business news.

PNGX list of indices. Credit: PNGX

On 1 November, Papua New Guinea’s National Exchange (PNGX) will launch six indices for the national market.  PNGX Domestic Index (PNGXD) and PNGX Domestic Capitalisation Index (PNGXDC) are expected to become the predominantly utilised indices in the country. The three domestic ones will be restricted to national incorporated companies while the rest will include both PNG and foreign companies listed. (PNGX)

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Oil Search Ltd made public its third quarter (Q3) results for 2019. Total revenue for the quarter was US$361.1 million (K 1.2 billion), which is five per cent lower than the second quarter of this year and 24 per cent lower than the same quarter in 2018. According to Peter Botten, Oil Search’s outgoing Managing Director: ‘The PNG LNG Project produced at a gross annualised rate of nearly 9 MTPA in July. However, in August and September, it was necessary to reduce Project production rates for a short time when damage to one of the six mooring chains at the offshore liquids loading facility was detected.’ (Oil Search)

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Credit: Geopacific

Geopacific Resources Ltd completed a A$40 million (K93.2 million) share placement to fund the Woodlark Gold Project in Milne Bay Province. The company also announced that it has offered ‘eligible Australian and New Zealand shareholders’ a share purchase plan which, if successful, will deliver another A$5 million (K11.68 million) for Woodlark. (The National)

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Kumul Petroleum Holdings Ltd (KPHL) has filed a restraining order against the Public Accounts Committee (PAC), who is inquiring into the K5 billion PNG LNG paid in dividends to the state after 500 shipments were distributed by KPHL. The Chairman of PAC, John Pundari, said: ‘This was the single biggest project that was supposed to transform the lives of our people and the PAC has a legal duty and we as Members of PAC have a moral duty to inquiry and establish what has become of it.'( EMTV)

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The Acting Chief Executive of PNG Power, Douglas Mageo, released a statement after some local media reported that the Government ‘has settled K50 million in outstanding bills and therefore the fuel payment issue had been resolved’. Whereas PNG Power has received payments from the Government, Mageo said these have settled only current bills owed. Amounts in arrears total about K38 million.

He pointed out that for the company to reduce its fuel bills to a sustainable level, PNG Power ‘will continue to load shed in provincial centres that are not connected to the Port Moresby and Ramu Power Grid.’ Mageo said that once the Niu Power Gas Plant supplies electricity to Port Moresby, the situation would ease. The gas plant is scheduled to complete a transmission line early next year.

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Air Niugini’s Managing Director, Alan Milne, announced last week that the airline will be taking on the Cairns to Hong Kong route, via Port Moresby, from 30 October 2019.

Milne said: ‘This is a great opportunity for freight shippers and passengers alike and we are keen to make this work. There is agricultural produce and fish trade which we can uplift out of Cairns to Hong Kong via Port Moresby using our wide body 767 aircraft.  We know this is a significant service for the people of Far North Queensland and it’s now a significant service for Air Niugini and Papua New Guinea as we continue to grow our airline and continue to explore new opportunities.’ (Air Niugini)

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PanAust has got the results of an independent peer-review of the Sepik Development Project’s Environmental Impact Statement and Dam Integrity and has met with regulatory agencies in Papua New Guinea. The company also launched the website www.friedariver.com. It contains the environmental impact documents and information about the project. (Post-Courier)

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The Managing Director for the National Fisheries Authority, John Kasu, said that he is planning to find and develop markets for local fish farmers. ‘We are looking at setting up hubs that will supply fingerlings to surrounding areas and processing methods to prepare fish to sell at whatever available market we have.’ Kasu also mentioned he plans to look into international markets. (The National)

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Oil Search also announced plans to spud the Gobe Footwall exploration well. The plan is to drill from an existing well pad in the Gobe main field; if successful it could extend the life of the Gobe fields. (The National)

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PNG’s Ambassador to the European Union and Greece, Joshua Kalinoe, travelled to Greece to meet with Greek-based PNG investor Nick Roniotis. Kalinoe met with CEO’s of companies in the renewable energy and shipping sectors, and with Dimitrios Kamposos, Mayor of Argros-Mycenea. Kamposos said: ‘There is keen interest by Greek companies that I have spoken to and the embassy will provide the appropriate information to relevant stakeholders in PNG.’ (Post-Courier)

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With only 65 days left this year, it is time to start planning for 2020. Here’s the list of PNG’s public holidays.

Photograph of the week

PNG’s Treasurer Ian Ling-Stuckey [left] and ADB President Takehiko Nakao [right]. Credit: Takehiko Nakao/Flickr