PNG Ombudsman Freezes Loan to Govt for Oil Search Stake: AFR

2014-03-25 03:28:59.824 GMT

By Edward Johnson

     March 25 (Bloomberg) -- Papua New Guinea ombudsman issues

order freezing progress on loan to government to finance

purchase of 10.1% stake in Oil Search, AFR reports, citing

report in Post Courier newspaper.

  * Loan to be frozen until ombudsman completes investigation

    into government’s move to regain ownership stake in co.:

    report

  * “The ombudsman commission is not asserting that there are

    irregularities involved nor does it want to interfere with

    any development initiatives of the national government, but

    to ensure compliance with all the relevant laws,” ombudsman

    cited as saying

  * NOTE: Oil Search said Feb. 27 it will sell about

A$1.2 billion in shares to Papua New Guinea and will use the

funds to buy 22.8% of a license that includes Elk and Antelope

natual gas discoveries. UBS AG organized the funding for Papua

New Guinea’s stake in the co. NSN N1N90R6TTDUP <GO>

  * Link to AFR report: http://bit.ly/1fWgUEh (Subscription

    reqd.)

  * Loan led to sacking of PNG Treasurer Don Polye, who refused

    to sign some of documentation over concerns about the impact

    on nation’s budget and sovereign wealth fund: report