PM seeks more investments

PRIME Minister Peter O’Neill says it is still the best time to invest in Papua New Guinea despite the rough patch the country is going through.
Opening the annual PNG Mining and Petroleum Investment conference in Sydney, Australia, yesterday, O’Neill said the country had gone through challenging times this year, especially with the lower commodity prices and the effects of the drought and climate change, which had affected the economy.
“But today, there is some upward swing. No one knows when oil will reach US$120 (K381) a barrel again,” he said.
“But we do know that in the future it will.”
O’Neill thanked resource companies “who have continued to not only maintain confidence in our economy but have increased their investment in our country”.
“Companies such Total, ExxonMobil and Oil Search to name a few, but there are also many of you in this room today,” he said.
O’Neill said other important investments taking shape in the country included the Wafi-Golpu minerals exploration project, Papua LNG and the expansion of the LNG project.
“Freida River has the largest known gold and copper deposits in the world – over two billion tonnes,” O’Neill said.
“The Government is fully committed to these projects and a number of other projects at various stages of development and approval processes.
“There are a number of reforms that are underway in our resources sector as we seek to increase productivity in the tough global economy.”
O’Neill said Government revenue from the oil and gas sector had fallen from nearly K2 billion a year at the height of prices, to around K260 million a year.
“Adjusting to changing realities has been challenging but is key to surviving the challenges that we face today and into the future,” O’Neill said.
“The Government will do what it can, without exceeding borrowing and spending limits, so that we continue to promote that growth.”