PNG Prime Minister Highlights Key Areas of Energy, Mining, Agriculture and Tourism in Sydney
The Prime Minister, Hon. Peter O’Neill CMG MP, delivered the keynote address that provided an update on the National Government’s approach to managing the impact of low energy prices and the way in which new projects are proceeding despite global pressures.
In his address the Prime Minister also advised the Mr Peter Graham has been appointed as the incoming Managing Director and CEO of Ok Tedi Mining.
During the speech and subsequent question an answer session, the Prime Minister further expanded on Government plans to expand agricultural sector development through private sector partnerships in areas such as oil palm, coffee, rubber and other commodities. The expansion of the tourism sector, including plans for direct international flights to Kokopo were further topics of discussion.
PM O’Neill assured investors that following recent ongoing economic growth, and a Government with clear and articulate plans for development, there is great opportunity for investment on Papua New Guinea that will further support the nation.
“There has never been a better time to invest in PNG,” the Prime Minister said to business representatives.
“Since Independence the last two and a half years has given the right level of support to the private sector, and I think it is time that businesses take advantage of those opportunities.
“We are a Government that is very pro-business, we know that business will support our citizens, will provide employment and provide income for our citizens, and that is why we are partnering businesses in many sectors.”
The Prime Minister was introduced by Mr Greg Pawson, President of the Australia Papua New Guinea Business Council, who acknowledged the development taking place in the nation and expressed his appreciation for the Government’s ongoing engagement with the private sector.
“PNG’s economy has experienced remarkable growth over recent years and has such enormous potential,” Mr Pawson said when introducing the Prime Minister.
“The Council, on behalf of its members, applaud the PNG Government’s budget commitment for investment and reform towards four key sectors including health, education, transport infrastructure and the public sector - specifically law and justice.
“The prime minister is a huge advocate for the private sector and is always open and willing to engage, and to understand the opportunities and challenges of doing business in PNG. Moreover he acknowledges that a vibrant and dynamic private sector is the key for continued and sustainable growth for the PNG economy.”
Energy Sector
PM O’Neill highlighted the importance of forward thinking in the nation’s participation in the global energy market:
“As an LNG exporting nation, we also accept that there are global factors which are beyond our control.
“We need, as a country, to adjust to the impact of the low world energy prices, which is a factor that is going to continue to have some effect on our economy into the long-term future.
“But despite the low energy prices we are working closely with industry in ensuring that we continue to maintain the momentum in the development of the LNG projects in the country.
“We are working closely with Exxonmobil, our managing partner of the first LNG project, in ensuring that we deliver a third train in the current project.
“We have just recently made an announcement of the establishment of a team that is going to work through the issues on the P’nyang fields which will enable the third train for this project.
We are also happy with the resolution of the arbitration that took place between Oil Search and TOTAL in the development of the Elk-Antelope resource in the Gulf Province.
“Our government is very focused, we have encouraged TOTAL to enter into a program of work that will ensure that we deliver this project to Papua New Guinea.
“We’re encouraged by their commitment, and to date they have given us a firm commitment that they will enter into a FEED stage before 2017.”
Mining Sector
Prime Minister Hon. Peter O’Neill further outlined developments that are progressing in the mining sector, and advised business representatives at the lunch that a respected resources sector executive was being appointed to lead Ok Tedi Mining:
“I want to assure you that we are giving the same focus in the other sectors like the mining sector.
“As we all are aware, global commodity prices have a huge impact on that industry as well. But I want to assure you that to date we are working closely with development partners in the Wafi-Golpu project. There are some changes to the structure of the development to that project but I can assure you that we are very much staying on course for the delivery of a world class mine in the Wafi-Golpu area.
“We are also encouraged by the new interest that has been expressed in the Frieda Project, with our new partner PanAust, the Government has already put them on notice that we will exercise our right to take up to 30 per cent of that project. We will work together in ensuring that we will deliver a world-class project in the Frieda area of our country.
“I also would take this opportunity to announce to the business community that we are refocusing the management of Ok Tedi mine. The board has just recently appointed Peter Graham, formally of ExxonMobil, as the Managing Director and CEO of Ok Tedi. Which will now ensure that management of that mine continues to adhere to the world’s best practices and I know that many of you aware Peter Graham will deliver for that company and that project.”
Agricultural and Tourism Sectors
The Prime Minster highlighted opportunities in business areas outside of the resources sector and a focus on strengthening agricultural production and expanding the tourism industry in the nation:
“There are great opportunities for new investments and, of course, our old partners who are already investing in the country. Not only in the mining and oil and gas sector, or in the construction sector, but also in other areas like tourism and agriculture.
“Our government is now partnering private investors in major agricultural projects throughout the country.
“We are able to expand on the oil palm industry that we have. We are entering into an arrangement with a private developer, with the Government as a partner, to develop the large Sepik plains which will be converted into a palm oil growing area.
“That will give greater opportunities to our people within that area where there are very poor communities.
“I can say that similar structures have been contemplated for the coffee industry, our rubber and tea and the other commodities that we need to increase production - because we think that we have some of the best available organic agricultural potential anywhere in the world. Because of our fertile soil and abundance of rain and water and sun in the areas we are able to achieve output many other countries cannot.
“We are also investing heavily in tourism. Many of you will be glad to know that KOKOPO is only three and a half hours from Brisbane. You don’t all have to go to Bali as the only tourism destination for Australians. In fact the government is now expanding the runway at airport facilities so that we can have direct flights from Brisbane and Cairns, direct flights from the Narita and direct flight from Beijing.”
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