Treasurer Patrick Pruaitch rejects notion of Budget blowout, Kumul Petroleum to evaluate methanol plant and small rise in inbound tourism. Your weekly digest of the latest business news.

Treasurer, Patrick Pruaitch, says budget cuts and new borrowings show the government is demonstrating responsible fiscal management. In a statement released before Tuesday’s opening of the new parliamentary session, Pruaitch rejected there would be a budget blowout. Pruaitch says new cuts will bring the final 2015 deficit in line with the government’s original projection of US$783 million (K 2.26 billion) dollars.

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Kumul Petroleum has signed an agreement with Japanese petrochemical company Sojitz to evaluate the potential of developing a methanol production facility. Kumul Petroleum Managing Director Wapu Sonk says the methanol project could generate US$183 million (K492 million) by 2030.

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The TPA’s Alice Kuaningi.

The Tourism Promotion Authority Marketing Director, Alice Kuaningi, says PNG has had more than 191,000 international visits in 2014, a slight increase on the 182,188 visitors the country had in 2013.

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Oil Search is open to any proposal that reflects value for shareholders, but has repeated its opposition to last month’s takeover bid from Woodside Petroleum, according to Managing Director Peter Botten. In his September quarter report, Botten reported record production although revenues fell three per cent from the June quarter.

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Marengo Mining will issue US$14 million (K41 million) worth of debentures to its major shareholder, Sentient Executive GP IV. Marengo says the use of proceeds will primarily be for drilling and exploration work at the Yandera Project and the company’s operations in PNG, exploration work in Mexico, working capital and general corporate purposes.

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Santos Executive Chairman Peter Coates says he is reluctant to sell its strategic liquefied natural gas interests in PNG and Queensland, saying other assets were ‘much more suited’ to the asset sale process currently under way.

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InterOil is stepping up its appraisal program at the Elk-Antelope site, by assigning one of its drilling rigs to the project. Chief Executive Dr Michael Hession said the move reflected the joint venture’s priority to complete field appraisal.

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Port Moresby business people should be wary of police officers who arrive in ‘civilian and tinted’ vehicles, Superintendent Ben Turi has warned. His warning follows a robbery last week when K100,000 was stolen from a business house by armed men in police uniforms who had arrived at the premises in such vehicles.

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Department of Works’ David Wereh

The Department of Works Secretary David Wereh says the first phase of the Lae-Nadzab super highway project is ahead of schedule despite delays in the early stages. Work on two lanes will be completed in December. Work on the other two lanes was continuing and the first phase of the project will be completed by next September.

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The Central Bank of Solomon Islands has given the approval for Bank South Pacific to acquire Westpac’s banking operations.

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PNG Chamber of Mines and Petroleum Executive Director, Greg Anderson, says two proposed mining projects, the Frieda River copper-gold project in Sandaun Province and the Wafi-Golpu project in Morobe Province, will not go ahead if proposed changes to the Mining Act are enacted. But, he says, Prime Minister Peter O’Neill has given industry leaders an assurance his government will maintain fiscal and regulatory stability for future mining ventures.

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The Niugini Organics stand at the Fine Foods Australia 2015 in Sydney last month. Credit: PT&I

India’s new High Commissioner Nagendra Kumar Saxena will push for the establishment of a pharmaceutical base in PNG, which would manufacture drugs locally instead of importing them.

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And finally, thinking global is paying off for small rural producers from seven villages in East New Britain.They’re supplying Niugini Organics with coconuts from which a range of premium quality, organically certified range of oils and soaps. Niugini Organics is expanding its horizons and now exporting to Australia, NZ, the UK, Kazakhstan and Russia.