Risky reforms

 THE opposition has warned the government of the negative implications its decision to dismantle Petromin Holdings Ltd will have on foreign investment.

It also warns about the repercussions of bringing the Papua New Guinea Sustainable Development Program Ltd’s Singapore re­gistered office to the country.

Deputy opposition leader and Bulolo MP Sam Basil said two international companies – Royal Dutch Shell which entered into a strategic alliance with Petromin Holdings Ltd in 2011, and mining giant BHP Billiton whose 52% share was voluntarily surrendered under the PNG Sustainable Development Program Ltd arrangement – would be watching the government’s decisions and actions closely.

“I must warn the government of Prime Minister Peter O’Neill that they won’t be the only ones,” he said. 

“The mining, oil and gas players worldwide will also be watching to see whether the decisions reflect PNG as a good investment destination or put them off as future investors and potential joint venture partners.”

O’Neill had announced last Friday that Petromin and the Independent Public Business Corporation would be wound up and their assets transferred to three new Kumul entities.

He also hit out at the PNGSDP saying it had not achieved anything except pay millions of kina to consultants “who are most likely their mates”. 

Basil said decisions which could have expensive implications, and involving investors here and abroad, should be handled with finesse.

“The opposition is extremely concerned to hear that Petromin Holdings Ltd, a state company established by former prime minister Sir Michael Somare in 2007, to manage the state’s interest in oil, gas and minerals would now be axed,” he said.

“What consultations, if any, have been made on how to address the assets and shares of Petromin Holdings Ltd in the problem-plagued Tolukuma gold mine, the Elk-Antelope field, the PNG LNG project, the central Moran field and even the new Petromin Building opposite Murray Barracks sports field? 

“And what about the strategic alliance deal between Royal Dutch Shell and Petromin in 2011?”

Basil said the decisions, if true, again exposed the knee-jerk decision-making style that was becoming a trademark of O’Neill’s leadership.