Delay in royalty payments feared after quake

ROYALTY payments may be delayed as an after-effect of the earthquake in the highlands regions, says Bank South Pacific chief executive Robin Fleming.
He said it would have an immediate impact on the extractive sector because of the companies operating in the impacted areas.
“Oil Search and ExxonMobil are in a better place to make those announcements for their internal operations,” he said.
“I understand that there is no significant damage to the PNG LNG pipeline and facilities and that Exxon and Oil Search have made statements to the effect of a re-commissioning process that may take four to eight weeks perhaps.
“From a fiscal perspective, I would think it potentially could have some impact on the receipt of royalties in 2018 in terms of delays because that it where the most immediate impact is. From a tax perspective I don’t think there are any major issues.”
He said the bank’s operation in the region had been affected which in turn would affect businesses.
“Ten to 11 of our branches and sub branches have been affected in various ways in the Highlands. The ones that were most immediately affected are Moro, Tari and Mendi,” Fleming said.
“Our staff have also been moved from Moro. The branch at Tari was opened when we were able to get communications and power (up again). And Mendi too when he had power and communication (back).