In brief: Papua New Guinea’s banking sector gets ready for more competition and other business stories


Central Bank awards in principle banking licence to Credit Corporation, Japanese delegation visits proposed Special Economic Zone locations in Papua New Guinea, Newmont’s proposal to combine with Newcrest Mining, and Santos posts record full-year cash flow. Your business news in summary.

Credit House in Port Moresby  Credit: Credit Corporation


Teachers Savings and Loan Society (TISA), as part of its plans to become a commercial bank, has announced the Oracle Banking Suite as its core banking system.

‘We will provide sustainable, value-based and customer-centric financial services and ensure that our 50-year-old DNA and culture are preserved when we become a fully-fledged commercial bank,’ said TISA’s Chief Executive Officer, Michael Koisen. (The National)


Credit Corporation PNG has announced that the Bank of PNG has granted it an approval in principle for a banking licence for 12 months.

‘We are working with the Bank of PNG on the necessary steps we will be taking in preparation for our launch as a new PNG bank next year,’ said Credit Corporation PNG Chairman, Albert Mellam. (Post-Courier)


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After reaching an agreement to pay K10 million a month to Nambawan Super against outstanding rental arrears, the State has announced that the Department of Education, Teaching Services Commission and the PNG National Commission for UNESCO will be moving to Vulupindi Haus in Port Moresby. The building is 100 per cent owned by Nambawan Super.

‘As at the end of January 2023, the State had paid K102 million of its outstanding rental arrears. We expect that the State’s rental account with NSL will be brought up to date and all outstanding arrears will be settled by the end of February 2024 if the K10 million monthly payments are not missed,’ said Sayer in a statement. (Nambawan Super)


PNG’s State Negotiating Team (SNT) is now trying to get a ‘much more mature deal’ on the Wafi-Golpu project in Morobe Province that guarantees all involved, including landowners and the provincial government, get strong benefits, according to Dairi Vele, Chairman of the State Negotiation Team.

He told a national newspaper that the SNT should be able to make an announcement within the next couple of months. (Post-Courier)


US mining company Newmont Corporation has confirmed its non-binding proposal to acquire 100 per cent of the share capital of Newcrest Mining, which operates the Lihir gold mine in PNG. If the proposed transaction goes through, both companies will combine which, according to a release, means a company 30 per cent owned by Newcrest and 70 per cent owned by Newmont. (Newmont)

Special Economic Zones

A delegation of experts from the Japan Development Institute has been visiting all the proposed Special Economic Zone (SEZ) locations in the country to help PNG formulate a SEZ master plan. A draft master plan in expected to be presented in April when PNG hosts its first SEZ Summit in Port Moresby. (Post-Courier)


The Department of Information and Communications Technology has released a first draft of the National Media Development Policy for consultation. Comments are invited by 17 February. Read the document here. (ICT)


Santos posts record full-year cash flow

Boosted by significantly higher oil and LNG prices, plus a higher interest (42.5%) in PNG LNG following its merger with Oil Search in December 2021, Santos (PNGX: STO) posted a record full-year FY22 cash flow of $US3.6 billion (K12.6 billion) and raised its final dividend to around 80 per cent.

During the year PNG LNG maintained strong gross production at 8.6mtpa in 2022, 20-plus per cent above forecast for spot cargoes in 2022, with Santos-operated assets delivering 14 per cent (in 2022) of PNG LNG gas supply.

Meantime, Santos is progressing the Angore development to backfill PNG LNG.

The oil major, together with its international partners, led by French energy giant TotalEnergies and also including ExxonMobil, in the $US10 billion (K35.2 billion) Papua LNG project expects to announce a decision later this quarter to start engineering and design work.

Everything going to plan construction is targeted for the end of 2023 or early 2024, with production start-up targeted by early 2028.

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