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OPPORTUNITIES

Investment opportunities in
Papua New Guinea

Papua New Guinea is richly endowed with natural resources, including mineral and renewable resources, such as forests, marine (including a large portion of the world's major tuna stocks), and in some parts agriculture. The rugged terrain—including high mountain ranges and valleys, swamps and islands. There are opportunities in investing in infrastructure, education, health, and access to finance.

Agriculture, for subsistence and cash crops, provides a livelihood for 85% of the population and continues to provide some 30% of GDP.

Mineral deposits, including gold, oil, and copper, account for 72% of export earnings.

Oil palm production has grown steadily over recent years (largely from estates and with extensive out grower output), with palm oil now the main agricultural export.

Coffee remains the major export crop (produced largely in the Highlands provinces); followed by cocoa and coconut oil/copra from the coastal areas, each largely produced by smallholders; tea, produced on estates; and rubber.

The first major gas project was the PNG LNG joint venture. ExxonMobil is operator of the joint venture, also comprising PNG company Oil Search, Santos, Kumul Petroleum Holdings (Papua New Guinea's national oil and gas company), JX Nippon Oil and Gas Exploration, the PNG government's Mineral Resources Development Company and Petromin PNG Holdings. The project is an integrated development that includes gas production and processing facilities in the Hela, Southern Highlands and Western Provinces of Papua New Guinea, including liquefaction and storage facilities (located northwest of Port Moresby) with capacity of 6.9 million tonnes per year. There are over 700 kilometres (430 mi) of pipelines connecting the facilities. It is the largest private-sector investment in the history of PNG. A second major project is based on initial rights held by the French oil and gas major Total S.A. and the U.S. company InterOil Corp. (IOC), which have partly combined their assets after Total agreed in December 2013 to purchase 61.3% of IOC's Antelope and Elk gas field rights, with the plan to develop them starting in 2016, including the construction of a liquefaction plant to allow export of LNG. Total S.A. has separately another joint operating agreement with Oil Search.

Further gas and mineral projects are proposed (including the large Wafi-Golpu copper-gold mine), with extensive exploration ongoing across the country.

The PNG government's long-term Vision 2050 and shorter-term policy documents, including the 2013 Budget and the 2014 Responsible Sustainable Development Strategy, emphasize the need for a more diverse economy, based upon sustainable industries.