the png government has raised $a1.68 billion

THE Papua New Guinean government has successfully raised $A1.68 billion to pay off a bond in an effort to retain its stake in Oil Search.



Prime Minister Peter O'Neill. Photo by Michael Cairnduff.

Prime Minister Peter O'Neill told the PNG Parliament last week that the Bank of PNG had “already secured the funds for the buyback”.



According to The Australian a team of negotiators led by PNG Foreign Minister Rimbink Pato has been sent to Abu Dhabi to discussing buying back its 14.6% stake in Oil Search from Abu Dhabi-owned investment fund International Petroleum Investment Company.


PNG originally raised the funds from IPIC through the sale of bonds that could be exchanged for its 14.7% stake in Oil Search.


The convertible debt deal, which was struck in 2008 during the financial crisis, is expected to trigger a contest for a slice in the $19 billion PNG LNG project.


But with the March conversion date looming, the government decided to raise the cash instead of giving up the stake in the oil and gas producer.


ExxonMobil subsidiary Esso Highlands is constructing and will operate the project on behalf of Oil Search, NPCP, Santos, JX Nippon Oil & Gas Exploration, Mineral Resources Development Company and Petromin PNG Holdings.


The project is more than 90% complete and on schedule for first delivery of LNG during the second half of 2014.

http://www.pngindustrynews.net/storyview.asp?storyid=801882775§ionsource=s0