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PM on International Petroleum Investment Company Loan

Prime Minister Peter O'Neill assured parliament that they will negotiate a better deal with the International Petroleum Investment Company, to take over shares held as security in Oil Search.


In 2008 the PNG Government secured close to 1.6 billion Australian Dollars through the IPIC Loan for its share of the PNG LNG Project, through an exchangeable bond.

Parliament was told today that currently, a team led by Foreign Affairs Minister Rimbink Pato and Central Bank Governor Loi Bakani, are in Abu Dhabi for negotiations.


Member for Kundiawa Gembolg asked Prime Minister Peter O’Neill to give an update of the IPIC Loan and the Oil Search Shares held as Security.


Prime Minister Peter O’Neill said a team is currently in Abu Dhabi to negotiate a deal with the Arabs to take over the shares held as security in Oil Search. 


Mr. O’Neill said the Government desires to retain some shares in Oil Search because; it is a strategic company for PNG, given the fact that it has well over 30 % of the PNG LNG Project and is actively managing the Kutubu Oil Project.


As the concluding  month of March for the negotiations nears, the Central Bank Governor has been tasked to come up with a better deal because the outcome will depend entirely on the Arabs if they are willing to hand over the shares.


 In 2008, the PNG Government took out the IPIC Loan to increase its shares in the PNG LNG Project, placed its shares of Oil Search with IPIC and now the government has the mammoth task of getting some of the shares back.


The outcome of the negotiations will be finalized and tabled in parliament once all negotiations are concluded.

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