PRIME Minister James Marape seized the opportunity to forge and strengthen Papua New Guinea (PNG)-China relations and friendship at a cultural show hosted by China’s Embassy in PNG at the International Convention Centre (ICC) on Sept 26. Marape stayed on throughout the night of the reception, taking group photographs with the Fujian Acrobatic Troupe members and guests comprising local leaders and communities from both countries. He only left the 500-people dinner-cultural show reception at about 11pm after a 15-minute colourful fireworks display that lit the sky above the ICC. The reception, featuring an hour-long exclusive and spectacular performances by acrobats, dancers and a singer, was staged to celebrate the 70th Anniversary of the founding of The People’s Republic of China. Marape said in his dinner address: “We have much to learn from China’s rise from poverty into the world’s second largest economy in just over 40 decades. It managed to lift some 700 million people out of poverty. “Some 95 per cent of Papua New Guineans are still living in poverty. We look forward to greater mutual trade and growth between PNG and China because we want to break free from grant dependency. “We recognised the One China Policy since establishing bilateral relations on Oct 12, 1976. China has never started any war … it only promoted world trade. “We appreciate President Xi Jinping’s visit to PNG for the Asian-Pacific Economic Cooperation (last November) and China’s continuous socio-economic contributions to PNG.” China’s ambassador to PNG Xue Bing said: “PNG, after 43 years of bilateral relations, is today the second largest Pacific trading partner (the largest being Solomon Islands) and the balance of payments is in PNG’s favour. “To date, Chinese investments have created 6,000 jobs for Papua New Guineans. China’s technology-driven economy is today contributing to 30 per cent of global economic growth. “China’s global economic development and activities will always remain as an opportunity for the rest of the world to benefit mutually.”
By REBECCA KUKU - The National Hela Province is host to a number of many natural resources projects that benefit Papua New Guinea. The current biggest project, includes the PNG LNG Project source area of Hides, Angore, Kutubu, Moro, Moran and Mananda oil fields. But despite its beauty and its resources tribal warfare continues to ravage their land as families are left homeless, children fatherless and women widowed at an early age as law and order issues continue to rise. Cassie Kamuni is a 19-year-old widow with two young children aged three and one. Not only was her husband killed in a tribal fight but her father and two brothers as well. “When I was 15 years old, they came in the night and killed my father and two brothers, my mother took us and we ran away back to her village. “Without a father and brothers to stand up for us we were left defenseless, so my mum gave my hand in marriage to an old warrior who already had three wives, I was to become the fourth. “But that is our way of life, one of his daughters is the same age as me, and we became friends.He was kind to me.” “Though there were times when his other wives, older than I would attack me and beat me, we later became good friends and they loved my children and treated them as they were their own. “But soon the tribal warfare began again, my husband left with his men after two weeks word reached us that he had died in battle.” Cassie has gone back to her mother’s village but now with young ones to care for. “All my husband’s worldly things were shared amongst the older sons; my children and I were given nothing.” “We are now left at the mercy of my mother and her people to care for us,” she says. Cassie says tribal fighting robbed her ofa normal childhood. “If my father was not killed, I would be in high school now, but now I am a mother and again tribal fighting has robbed my children of a father. “Such is the way of life for us, but it is how it has always been,” she says. Hela Governor Philip Undialu says that Cassie’s story is just one of the many untold stories of his people. “I can honestly say that tribal fighting has caused many damages, destructionand claimed many lives in Hela. “Tribal fighting unlike the earthquake which just happened and is over, continues on a daily basis. Every day homes are burnt, people killed and it is an obstacle that we face every day. “There areno actual figures, but I can say that there has been too many lives lost in tribal fights,” he said. Undialu said that they have started holding peace mediation talks and called for the surrender of firearms but it would take a while. “Though Hela is a resource-rich province in terms of oil and gas deposits, not everyone is benefiting from the extraction of these resources. “That’s why, our focus is on building the welfare of individuals and that we can achieve through driving the agriculture sector and agribusinesses.” Undialu said that the provincial government has started creating more job opportunities for their people in the hopes that warriors would lay down their arms. “The provincial government in partnership with the LR Group from Israel established the Piwa Agro project at Tari producing around 8,000 chickens per month and Koroba Agro in the Koroba-Lake Kopiago electorate producing around 11,000 eggs per month. “When you look at the benefits of these agribusinesses, they are generating a fair bit of income into the community. “For instance, we have more than 30 local workers for Koroba Agro and if they are paid K350 per fortnight, you are looking at around K10,500 plus injected to the village every two weeks. “In a month, it’s more than K20,000 put directly into people’s pockets.” Undialu said the same was done for Piwa Agro and the price of eggs which used to be K1.50 each is now 70 toea. “Our focus is to improve the welfare of our people and we hope to achieve that by investing more in the agriculture sector.” He said the total investment made to establish the chicken farm was around K20million and the provincial government owns 80 per cent whilst the LR Group owns 20 per cent. “Our next target is Wigman coffee and that will be the biggest agribusiness we will drive in the province with the aim to train around 5,000 farmers and plant around 15million coffee trees.” Undialu hopes that with all these job opportunities people will start laying down their arms. He said they were working on helping their people to become independent and also provide some stability in their lives so that people would have something to protect and will lay down their arms. “We will also be providing materials for building homes for those who willingly surrender their firearms. “If these people have permanent homes and jobs they will lay down arms because they would not want a tribal fight that would probably end with their homes being burnt. “At the moment the homes are made of bush materials so they have no care; they can easily rebuild them again, but if we give them a stable home, they will want to protect them knowing it would not be easy to rebuild again if they get burnt down in a tribal fight,” he said. Undialu said they were doing their best to address the issue within the province through their society context but also needed support from the National Government, non-governmental organisations, churches and other partners to address the ongoing tribal fights.
RETIRING Oil Search managing director Peter Botten believes the company is a leader in the resource sector in promoting the importance partnerships. Botten, who has been in the position for 25 years, was proud to have worked with so many individuals. “I am proud to have worked with so many outstanding and committed individuals, who have not only delivered shareholder value but have contributed so much to the social and economic development of Papua New Guinea, making a real positive impact to the lives of people in that country,” he said. “I believe Oil Search is a leader in the resources sector in promoting the importance of partnerships with governments, communities and other stakeholders to drive socially responsible development, leveraging our respective strengths and building capacity in government and communities for positive social change.” Oil Search’s chairman Rick Lee said the board appreciated Botten’s long and dedicated service to the company over the past 26 years. “Under his leadership, Oil Search has grown from a small exploration and production company to a regionally significant oil, gas and LNG producer and exporter,” he said. “Peter is recognised as one of the world’s most successful corporate executives, as well as a leader in environmental, social governance and corporate social responsibility. “Peter has decided that as Oil Search embarks on its next phase of growth, with major expansion projects in both PNG and Alaska, now is the time to transition the leadership.”
POLICE have more important public safety and security issues to deal with daily than chasing buai vendors off streets and public places, says Police Minister Bryan Kramer. He told The National that it was “just not practical” for police officers to be treating as a priority the enforcement of the ban. “Police (should) be focusing on ensuring public safety, including running operations and addressing major crimes,” he said. “Minor crimes can also be addressed. But it’s just not practical for police to be enforcing the betel nut ban policy.” Police teams on foot or mobile patrol duties often clash with informal market vendors selling items such as buai on roadsides, confiscating the popular fruit and other items they can get their hands on. Kramer told The National that the top priority for police officers was to provide safety and security to the people. National Capital District Governor Powes Parkop earlier told The National that the 2013 betel nut ban policy had been amended with City Hall regulating it. “But Parliament passed laws to make it illegal to sell betel nut in public places at the beginning of this year. It does not apply only to Port Moresby but to the rest of the country as well,” he said. “Currently, the NCDC has not been enforcing the betel nut ban as we are waiting for the magisterial services and police to synchronise our effort before we start enforcing the ban again.” Parkop said Parliament had amended the Summary Offence Act to have the buai ban policy become law, meaning that people would be prosecuted for selling betel nut in public places. “Once the NCDC Magisterial Services and Police synchronise, NCDC will than start enforcing the betel nut ban. And people will then be arrested, charged and prosecuted in court for selling betel nut in public places,” he said. Meanwhile, a police officer appeared in the Waigani Committal Court charged with murder in relation to an incident on Sept 16 in which buai vendor Peter Pamben was killed. Constable John Selan Lavona, 40, from Rombucho village in Manus was charged with one count of wilful murder before Magistrate Cosmas Bidar. “There are also other officers involved and yet to be arrested and charged. These are allegations made against you but investigations are yet to be completed,” Bidar said.
MELBOURNE (Reuters) - Papua New Guinea’s biggest company Oil Search Ltd said on Tuesday long-serving Managing Director Peter Botten will retire from the firm next year after 25 years in the role, just as the company enters a major growth phase in PNG and Alaska. Botten will be succeeded by senior executive Keiran Wulff in February and will step down from the board on Aug. 25. “Under his leadership, Oil Search has grown from a small exploration and production company to a regionally significant oil, gas and LNG producer and exporter,” Oil Search Chairman Rick Lee said in a statement. Wulff currently leads Oil Search’s operations in Alaska, where the company recently doubled its stake in a promising oil prospect and aims to make a final investment decision in 2020 on a roughly $5 billion project. “It’s pretty big shoes to fill. He was the most logical candidate. He’s certainly well regarded,” said Andy Forster, senior investment officer at Argo Investments, which owns Oil Search shares. Botten is stepping down at a crucial time for Oil Search as its larger partners in two liquefied natural gas (LNG) projects in Papua New Guinea, Total SA and Exxon Mobil Corp, look to push through a $13 billion plan to expand gas exports. Oil Search’s shares fell 1.9%, against a 0.6% drop in the S&P/ASX 200 energy index, reflecting some worry about Botten’s retirement, even though it had been well flagged. “His departure presents risks to the company’s internal functioning alongside political and market engagement risks at a delicate point in Oil Search’s growth trajectory,” said Credit Suisse analyst Saul Kavonic. However, Wulff said Botten has set up the company well for the transition, recently creating PNG and Alaska divisions and bringing in experienced international managers. He also played down concerns that political issues in Papua New Guinea could stall an agreement with Exxon on development of the P’nyang gas field, which is needed before a final investment decision on the PNG LNG expansion. “We’re very confident. The reality is these projects are fundamental to Papua New Guinea long term and its aspirations ... to develop a broader based economy,” Wulff told Reuters in an interview. Botten fended off an $8 billion takeover approach in 2015 and the company is again seen as vulnerable to a bid as its share price has slipped amid the political ructions in PNG, but Wulff was undaunted at the prospect.
Keiran Wulff will replace long-standing Oil Search chief executive Peter Botten at the company. Nic Walker
By Angela Macdonald-Smith - Financial Review
Incoming Oil Search CEO Keiran Wulff has big shoes to fill and challenges in both Alaska and the Pacific when longstanding boss Peter Botten steps down next year.
The firm's chief in Alaska and an experienced hand in PNG, he will be able to call on his predecessor's experience and expertise at least until August next year when Mr Botten retires.
But with a $US14 billion LNG expansion in PNG delayed after the change in government earlier this year and lingering investor uncertainty over the Pikka oil project on Alaska's North Slope, the carefully structured leadership transition is still seen as posing risk.
"Botten is a legend of the region's LNG industry and cannot be easily replaced after a spectacular 25-year innings," said Credit Suisse energy analyst Saul Kavonic, pointing to his key leadership role in company strategy and internal organisation as well as political and market engagement.
"We have doubts whether Oil Search is functionally prepared for this departure."
Shares in Oil Search dipped 1.8 per cent to $7.19 after chairman Rick Lee announced Dr Wulff, who first joined Oil Search in 1993, had been appointed chief executive officer designate ahead of the first CEO change for a quarter of a century.
Mr Lee, who flagged in May that succession planning was well advanced, said Mr Botten had decided, with full support from the board, that now was the right time to transition the leadership.
He said that after an extensive internal and external search process, the board had agreed unanimously that Dr Wulff was the person "with the necessary experience, leadership skills and vision to take Oil Search into the future".
RBC Capital Markets analyst Ben Wilson said an insider appointment was a "natural fit" given the growth strategy was well set for PNG and Alaska and given that navigating the political and regulatory environment in both PNG and Alaska was "of critical importance".
"Botten’s depth of relationships in PNG won’t easily be replaced, however Dr Wulff has more relevant experience than most on this front," he said.
Still, Simon Mawhinney at investor Allan Gray, which has reservations about the Alaska entry, said capital allocation decisions were probably more important.
"There are so many uncertain outcomes that present for this company in the coming one to five years that it's really hard to know how they unfold and it's also hard to know how important the CEO is in that, given how large a portion of those assets sit inside a joint venture of which they are not the operator," Mr Mawhinney said.
He suggested that Mr Botten's close relations with the previous PNG government under Peter O'Neill may mean a change of CEO is positive.
The date of Mr Botten's exit has been a source of market speculation for several years. Some have even suggested that it could leave Oil Search vulnerable to a takeover, especially after a softening in the share price earlier this year due to the delays in the $US14 billion ($20.7 billion) LNG expansion.
Speaking to The Australian Financial Review, Dr Wulff rejected any suggestion that Oil Search was vulnerable, pointing to the managed transition process that will see Mr Botten remain an asset for the company for some time.
Long-standing CEO Peter Botten is retiring. Brendon Thorne
"Peter has been such a strong leader, we've made sure that we're not just overnight going to be in a situation where there's a vacuum and there's certainly not," he said.
"There's never a good time for a leader of 25 years to leave and it's just a matter of making sure the company is well prepared when it does occur."
Success under Botten's leadership
Mr Botten, among the three longest-standing chief executives of ASX-listed companies, has taken Oil Search from a $250 million explorer into the big league, primarily through its stake in the ExxonMobil-led PNG LNG venture, which started up in 2014.
Should the next expansion go ahead as planned, Oil Search is set to more than double its production again over the next five years.
Wulff's remuneration
News of the transition comes amid heightened tensions over the benefits flowing from multi-billion-dollar LNG investment in PNG, and the public and political concerns over the UBS loan to the government for the purchase of Oil Search. But Dr Wulff said those issues had "zero" impact on the CEO changeover.
"It's been a long planned process that the board has gone through and those activities or circumstances have had zero impact and that’s categorical," he said.
He rejoined Oil Search in 2015, taking charge of the cost and efficiency drive after the crash in oil prices, and leading negotiations that saw Oil Search enter the Papua LNG project, now led by French major Total.
Dr Wulff will receive fixed pay of $1.7 million plus short-term and long-term incentives and is on an ongoing contract with no fixed term.
That compares with Mr Botten's fixed salary of $2.374 million, which will continue until his retirement date, when he will receive six months' pay plus accrued leave. He is subject to a non-compete clause until August 2021 in return for a further $2.374 million.
KOMO Rugby League Association had its first grand finals on Sunday, signifying a historic achievement for the district. The inaugural season has seen Komo produce female, Under-20 and the A-grade teams. Under-20 player Humule Thomas Wabe made it into the Highlands side at the regional championships in Goroka. Sunday started with Topai Python and Gateway Dust facing off in the women’s division. Gateway Dust won 3-0. The B-Grade fixture was the second match of the day, with Elawi Sharks beating Topai Tigers 2-1. The last game was the men’s grand final. Kupe Eels’ Ikipe Amenaya scored the opening try and man-of-the-match Aipe Kamia scored the last four-pointer to secure a 18-8 win over the Tigers Hela Sports and Youth coordinator Ken Angobe, ExxonMobil PNG’s Kim Hahn, Murray Johnson and Elly Sawa and Hides Gas Development Corporation operations manager Abel Voyorite attended. Kim Hahn when making the presentation said the tournament had brought peace and unity to the community. She said it had broken down barriers and had included all members of the district. “We are glad that we have been here with you since day one when you started this journey and you have truly inspired us as well as other communities who now want to be like you,” Hahn said. Angobe thanked ExxonMobil PNG and Hides Gas Development for their support towards the association. Angobe praised the community and the players for displaying a safe and eventful day of matches.
