O’Neill: Decision is K1bil setback

The National Main Stories

THE decision by Oil Search Ltd to write off more than K1 billion in PNG exploration assets is another nail in the coffin for our economy under the current government, says former prime minister Peter O’Neill.
According to the People’s National Congress Party (PNC) leader, almost every week, there is an announcement by investors that they are downgrading their PNG investments.
“The Oil Search announcement is yet another step backwards for jobs and livelihoods,” O’Neill said in a statement.
“The news goes from bad to worse for our economy and this began well before the coronavirus.”
O’Neill said in just a year, Prime Minister James Marape and his regime had driven our economy into the deepest hole in decades, and the seeds of economic collapse were sewn in the second half of last year.
“The government’s mishandling of the coronavirus response that shut down businesses, with the loss of more than 10,000 jobs, closed government offices and crushed SMEs (small-medium enterprises) just made the situation much worse,” he said.
“This government has caused negative growth of 6 per cent since coming to office, that includes four per cent this year, as stated by the World Bank, after a two per cent decline in 2019.
“On the back of this downturn in growth, the only thing the government is doing is to continue to borrow billions of kina that is just being wasted instead of taking action to stimulate economic activity and increasing government revenue.
“The uncertainty of economic management, and the government’s failure to negotiate major new projects is behind the decision by Oil Search to focus its attention on other projects around the world and to write off PNG assets.”
An attempt was made yesterday to get comments from Marape but there was no response before this edition went to press.

20 comments

  • I maybe mislead or be wrong on this edition but what I think is, our Government is on the right track for our health and our future generations health.
    If PMJM thinks differently like the US president, I think PNG will be in a disaster and we may loose every thing we claim to loose.
    Our economy were declined / bankrupt before PMJM and team took over.
    If COVID-19 wasn’t around we would progress well, seeing how it starts by spinning the wheels of Justice.
    Our blessed land is here to stay and we will make use of it if a good farmer can cultivate it and distribute it equally.
    God bless PNG as always!!.

  • This news is sad and alarming.
    This Government has put PNG back 40 years.
    What hope do our children have now, with no hope no work and no future.
    It is really going to multiply as the downward spiral continues.
    Can’t believe How the O,Neil Government put PNG back on the map with hope ,prosperity and safe and secure reputation that brought back tourism and now all has been destroyed in only 18 months with this new reckless Government.
    Now all is lost again.
    Get rid of this Government…..

    • This Government under the leadership of PMJM are doing a great job so far compared to PO and his cronies. I believe most PNGians who are true NATIONALIST and who LOVE this nation will agree.

      Its not about today, but the future of this NATION..

  • How much stupid is he that he is just eating his own words. He cannot tell the country how he squandered billions of kina only to mismanaged the country with billions to pay the loans facilities in the world. How he with other pngians and expat their deals to misuse millions of kina belonging to the people of PNG. He master minded all this crook deals . He should be ashamed of himself and his crooks.

    I want bring to you PO to be smart like how you misuse the monies with cronies and tell the nations how you will recoup the monies use through fraud and pay those monies back to the country. This is what we should hear from you. Not blaming game with this current government. This is foolishness at the most.

  • One can only see the difference when a bad thing is exchanged for a worst one.
    This is the scenario with PNG politics at the moment.

  • Dear Mr Good and Honest former PM.

    Please be mindful when you talk about issues affecting our country because YOUR Government was and is the main player behind the financial downfall now so just humble yourself and corporate with the current Government to find the best way forward for our country. Why speaking as if the current Government is to be blamed all the time????

  • It’s good to unite, plan and work for the betterment of the nation than throwing stones. PO forget about the past and/or party , leadership difference.

  • O’neil should come out and make it clear on how and why he borrowed the K3billion loan to buy into Oil Search shares which wasn’t worth that much, putting PNG into debt at the first place instead of talking about lousy K1 billion exploration assets?
    Exploration assets are owned by foreign companies and used free of tax to carry out exploration activities to build their resources base so whether they keep them or forfeit is insignificant. PM Marape’s govt is trying to sort those mess up that previous governments done by changing applicable laws so the PNG takes a bigger share of the resources development rather than being a mere spectator. Corrupt crooks & allies like Oneil & his cronies did dodgy deals and build their own personal empires in the name of paper development, while the resources owners (LOs & PNG) miss out and current govt is trying to change this. PNG has to start somewhere & that’s exactly whet PM Marape’s govt. is doing so PO should shut his mouth and support instead of trying to make noise.

  • How sad, we never have been told the expenditures of South Pacific games held in PNG? The outstanding K3 billion Loan. Under PO he sold our Land from Marangis village along the coastline plain to Chimbu to Morobe and down to Popondeta. Is it to do with facilitating the USB Loan? There has been so much corrupt deal before PMJM came into office. We are reaping the results of the bad deep in the past. STOP LYING to cover up

  • Government has made a big mistake. Let the mine reopen. Humble yourself, admit your mistake and let BNL reopen the mine. Too much is a stake for PNG. If you want to take over the mine, do it strategically, not haphazardly, and throwing your weight around. There is much to be desired from the lackluster performance of the State Negotiating Team.

  • Wake up Prime Minister Marape! You are not doing nearly enough to get the Porgera Mine functioning again! Work out an agreement with Barrick and get those 2700 people working again. If you don’t Peter O’Neill is going to have you removed from power in a vote of No Confidence.

  • OH Neil and anti-Marape writers waffle and ignores world oil companies reports because of virus
    20/06/30 (Bloomberg) — Royal Dutch Shell Plc said it will write down between $15 billion and $22 billion in the second quarter, as the company gave investors a wider glimpse of just how severely the coronavirus crisis has hit Big Oil.

    20/06/15 (Sky News) Coronanvirus: BP to take hit of up to £14bn as crisis hits oil demand
    The company says it expects the recovery to accelerate the pace of transition to a lower carbon economy and energy system.

    ENI TO TAKE UP $4 BILLION IMPAIRMENT HIT DUE TO LOWER OIL PRICE OUTLOOK
    (www.brazilenergyinsight.com) Italian oil major Eni is expecting to report impairments of around 3.5 billion euros (cca. $3.96 billion) as a result of a lower outlook for energy prices.
    Eni said on Monday that it was cutting its forecasts for oil and gas prices, both in the short and long term.

  • Observation:
    It looks like PO has been fronting the media regularly during the past few weeks to play blame game and deliberately trying to cover up from his past mistakes.
    He is literallytrying his best to use the current issues faced by the country for his advantage.
    He seems to be Barking out very loudly, by spitting out negative remarks, showing ill-mannered attitudes and being disrespectful towards PMJM and further accusing him and his Government for all the Job losses, country debts ( accummulating into its billions), the closure of the Porgera mine and etc.
    If I am not mistaken, he is the root cause of all that is happening today.
    The more a person talks, the more he is trying to cover up for his wrong doings and win the popularity vote.
    A True Leader will rise up and speak for the good of his people when it is the appropriate time to talk.
    Just relax, fasten your seat belts and enjoy the ride my fellow Papua New Guineans. Our Captain PMJM is in the cockpit, and sure enough he will navigate us through the turbulence.
    The bad storms we encounter during this journey is only for a short period of time.
    There is no reason for panic.
    Short term pain is long term gain..!!
    I salute you Chief PMJM.
    Nobody is perfect, but I have confidence in your Leadership.
    God Bless PNG.

    • U tok stret, Umu!!!!!!!!!

      When a God fearing man rules, everyone is at PEACE.

    • Well said rocky,

      After a very long time and we started seeing changes happening in the system. That’s a good sign. My fellow PNGians, I believe PMJM has more to give, and lets all put him (PMJM) in our prayers. Don’t fall for what PO is saying, he (PO) must have think we are stupid/blind and can not see what he has done in his term.

  • Losing a k1billion exploration asset is not an issue. PNG has now got the opportunity to rise up & do it ourselves. And we can.

  • Peter O’Neil, you should be ashamed of of your past doing, you create this shits during your term, your poor policies for education and Health.
    With your education policy, it was promoting quantities and not quality that degrade the education system of this country . It was done in a way that you and your cronies would benefit which you did reap
    While for health, the same also applies where you and your cronies benefited while many people died with curable disease and the list can still continue. For you to appear on media every now and than is sign of senseless people.

    For PMJM, continue with your positive reform,we are with you. Thanks for changing the Minings’ Act including the Gas & Oil act. PMJM, thankyou once again for setting up Commission of Enquiry into the UBS Loan. Ask the Chairman of COI to fast track and have this animal behind bars, we are tired of seeing his face on the media. He’s an animal , he doesn’t sense of guilt for his past doing.

    Finally, PM JM if you are serious in addressing corruption in this country then, do away with leaders Tribunal act as it serve as a green field for corruption to prevail and furthermore, promote it (corruption) at the highest institution of this country which is the Parliament House. I am begging you PM JM if we could review or do away with it completely for the good of our country

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