Capital raising launched by Santos, Australia to provide drought relief for Papua New Guinea and National Fisheries Authority secures South Korean contract. Your weekly digest of the latest business news.

Santos Ltd, a key stakeholder in the PNG LNG project, plans to raise AUD$3.5 billion after announcing it will sell a stake in a gas field, issue new shares and form a partnership with a Chinese investor to raise funds. The company, which has also hired Kevin Gallagher as its new CEO, has been hit hard by the downturn in oil prices and recently rejected a takeover offer from Scepter Partners.

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Australia will provide AUD$3.5 million (K10.3 million) to PNG for drought relief. The package includes determining water and sanitation needs, supporting vulnerable groups, and supporting the National Disaster Centre. It also provide mapping of the impact of the drought on water, vegetation and crops, as well as seeds for drought-resistant crops to improve food security.

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A bluefin tuna in Pacific waters.

The National Fisheries Authority has signed a contract worth US$35 million (K102.8 million) with the South Korean tuna fishing company, Dongwon Industries, to build a sixth tuna factory in Morobe Province in early 2016. This project will provide approximately 2,000 direct jobs and 4,000 indirect jobs. This will be the sixth tuna processing project to be built in Lae. The Dongwon tuna project will commence in the first quarter of 2016. Dongwon Industries is one of the world’s largest tuna catching companies and the first Korean company to invest in a shore-based tuna project in Papua New Guinea.

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Australia and China are working together on a new health project to help tackle malaria in Papua New Guinea as part of a partnership between the countries to enable practical collaboration on development issues in the Asia-Pacific region. The Australian aid program will contribute AUD$4 million over three years, while China will provide technical expertise, as well as an in-kind contribution over three years to fund the project.

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The Independent Consumer and Competition Commission has warned the government not to introduce the National Rice Policy, in particular giving a monopoly rice producer a quota to control rice imports. The Commission found that the Rice Policy in its current form will increase prices that consumers will pay for rice; decrease the quantity of rice consumed in PNG; increase the profits of domestic rice producers; and not protect consumers at all from the effects of price shocks in the international markets. It adds that ‘because of tax incentives, the PNG government will not receive any financial benefits from the policy’.

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The seismic survey area. credit: Searcher Seismics

Australian-based Searcher Seismics will carry out a 2D seismic survey of the geology in the Gulf of Papua, according to spokeswoman, Rachel Masters. The 17,000 km survey will start in early 2016 for the Department of Petroleum and Energy.

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The French Trade and Investment Commissioner to Singapore and Brunei, Frederic Rossi, says he is anticipating French companies will follow the lead of energy giant, Total and trade with PNG. He was part of a delegation visiting Port Moresby and Lae last week, which included five companies from New Caledonia.

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PM Peter O’Neill speaks at the launch of the new route.

The inaugural direct flight from Brisbane into Gurney International Airport in Milne Bay Province took place last Saturday, with delegations from both PNG and Australia on board. Marianna Ellingson, Director General of the Office of Tourism, Arts and Culture, says this was a trial flight of Air Niugini’s new international route set to be launched next year. PM Peter O’Neill believes the route will open up a new market for visitors to PNG, adding that flights direct from Asia to locations such as Alotau and Mt Hagen were being investigated.

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The Pacific Islands Forum is launching a global social media campaign this week ahead of the Climate Change Conference in Paris, to raise awareness of the impact of greenhouse gas emissions on Pacific countries. The campaign will use Facebook, Twitter and other social media platforms using the #4PacIslands tag.

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David Beckham poses with members of PNG’s under-20 women’s soccer team and sports minister Justin Tkatchenko in Mount Hagen. Credit: Facebook/Justin Tkatchenko

And finally…. British soccer legend, David Beckham, has played an exhibition match in Papua New Guinea’s Highlands as part of a global project to mark his 10-year anniversary as an ambassador for the United Nations Children’s Fund (UNICEF). PNG is one of seven countries in which Beckham is scheduled to play a charity match to promote awareness and raise funds for UNICEF’s work for children.