Prime Minister Peter O'Neill has defended his government's decision to secure equity interest of 10-point-1 percent in Oil Search, as the best deal for PNG.
Mr. O'Neill said the decision to secure PNG's participation in Oil Search, is because the share value is expected to double over the next few years. He said PNG cannot continue to be a by-stander while others reap benefits from PNG's resources. Mr. O'Neill said concerns raised by the Opposition are only aimed at sensationalizing this transaction, and the loan secured is not going to increase the overall debt of the country. O'Neil however says, the loan will reduce it from around 1-point-6 billion Dollars of the IPIC loan to 1-point-2 billion Dollars, from the Swiss Global Financing Services Bank U-B-S, on better terms including reduced interest of under five percent. He said officials are also keen on refinancing this loan within the next 24-months to a concessional rate of around two percent for increased benefits. The Prime Minister also says, leading financial experts, familiar with this transaction have described it as a huge financial gain for PNG, because the country is fast becoming a major player in the oil and gas industry. Comments are closed.
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