New PNG PM pledges to 'take back economy' from foreigners

By Angus Grigg, Lisa Murray & Jonathan Shapiro - AFR Financial Review

Papua New Guinea’s new Prime Minister James Marape has put foreign companies on notice, pledging to change laws in the resources sector and “take back the economy”.

Delivering his first speech since easily winning a parliamentary leadership vote on Thursday morning, Mr Marape praised his predecessor Peter O’Neill while indicating he would move the country in a new direction.

“Who says one conglomerate from outside can come and tell me I can’t change the laws for my country,” he told parliament.

“I have every right to tweak and turn resource laws. We are all about maximising resources for our country.”

The nationalistic rhetoric marks a departure from the O’Neill Government and could delay a critical agreement with the government that is needed to proceed with a $US14 billion expansion of LNG as the new Prime Minister seeks to renegotiate the fiscal terms.

There are two separate ventures: Papua LNG, led by France's Total; and PNG LNG, led by ExxonMobil. ASX-listed Oil Search has a stake in both ventures. Shares in Oil Search closed 2 cents lower at $7.13.

At a press conference, Mr Marape pledged to table an Ombudsman Commission report into the government's borrowing of $1.2 billion from investment bank UBS - a complicated deal which cost PNG at least $400 million.

The investigation into the loan, which financed PNG’s purchase of a 10 per cent stake in Oil Search, was one of the main weapons used by the opposition to bring down Mr O’Neill.

Tabling the report, which found the deal may have resulted in 15 laws being broken, is the first step in bringing disciplinary action against Mr O’Neill.

Former PNG Prime Minister Peter O'Neill officially resigned on Wednesday. AP

“Now that he has been dislodged from the office of Prime Minister he can expect to face criminal prosecution,” opposition MP Brian Kramer said on Wednesday evening.

Go to this link for more: https://www.afr.com/business/energy/new-png-pm-pledges-to-take-back-economy-from-foreigners-20190530-p51svy