The Papua New Guinea Government plans to rebuild the country’s military barracks by 2017, InterOil halts drilling at Wahoo-1, and Bank of South Pacific plans share buyback. Your weekly digest of the latest business news.

The Papua New Guinea Government says it plans to deliver improved infrastructure at all military bases in the country. Prime Minister Peter O’Neill says that before 2017 the government will rebuild military barracks throughout the country.

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InterOil Corporation says it has suspended drilling at the Wahoo-1 well in PPL474 in the Gulf Province fields after intersecting gas and higher-than-expected pressures that could compromise rig safety.

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BSP’s Kostas Constantinou

Bank of South Pacific chairman Kostas Constantinou has announced that its board of directors will undertake a program to buy back up to K15 million (US$6.16 million) of its own shares. The buyback opened on July 15 and will continue for up to 12 months.

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The Employers Federation has urged all employers to comply with the new minimum wage, which was gazetted last week. The minimum wage rate is now K3.20 per hour, a 40 per cent increase, effective from 3 July, 2014

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Oil Search Limited chief executive officer Peter Botten says the company is confident that enough new gas will be found in Papua New Guinea to justify expansion in the country. Botten said by the end of the year Oil Search ‘will have a pretty good idea’ as to the size and shape of the Hides field in PNG’s Highlands.

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ANZ has won the global award for Best Digital Channels Strategy under the 2014 Retail Banker International Awards in recognition of its mobile phone banking tailored for the Pacific markets.

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David Lamotte, director of the International Labour Organisation (ILO) office for Pacific Island Countries, believes there may be resistance among employers but that modern legislation can have significant social and economic benefits. Lamotte has handed over the ILO’s final report on labour law reform to stakeholders in Port Moresby.

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Horizon Oil’s drill rig at Ketu-2 in Western Province.

Horizon Oil Limited says the proposed merger with Roc Oil Limited ‘remains on track’ despite an attempt by shareholders to prevent the scheme from eventuating.

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Each year K1 million will be spent on replanting cocoa seedlings in the Yangoru area of East Sepik Province, according to Yangoru-Saussia administrator Fenssen Yaninen. Under the agreement with the Cocoa Board of Papua New Guinea, each party will contribute K500,000 annually towards the project.

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Prime Minister Peter O’Neill has outlined plans to extend the national pension program to all Papua New Guineans once they turn 65. According to O’Neill, it is the right of all men and women to be taken care of in their old age.

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Asian Development Bank economist Aaron Batten believes the development of a sovereign wealth fund in Papua New Guinea is ideal as it would mitigate foreign revenue inflow from the country’s mining and petroleum assets.

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Australia’s Crater Gold Limited has started commissioning of the mining plant for the high grade gold project in the Eastern Highlands Province of Papua New Guinea.

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HBS has won a contract to distribute and sell assets from the PNG LNG project. The contract will see HBS sell and distribute equipment surplus to requirements following completion of project construction.

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The Bank of Papua New Guinea says the country’s revenue and foreign grants in the March quarter was more than K2 billion (US $821 million), a 12.2% rise on the corresponding period a year ago.

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Nadi International Airport in Fiji

Fiji Airways and Solomon Airlines are feeling the impact of bans imposed by their governments on the Honiara–Fiji direct route. The Solomon Islands Government issued a ban on Fiji Airways following a disagreement between the national carries over the route.

The leaders of the five BRICS countries – Brazil, Russia, India, China and South Africa – have reportedly signed a deal to create a new US$100 billion development bank and emergency reserve fund. The emergency reserve fund will aim to help developing nations avoid short-term liquidity pressures, promote further BRICS cooperation, strengthen global financial safety and complement existing international arrangements.

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A campaign, known as Connect the Blue Continent, has been launched by volunteers in Australia, New Zealand and across the region to ensure improved access to the internet in the Pacific.