PNG $1.2 B loan to OSH Blocked

[Tree]

Papua New Guinea loan for Oil Search shares blocked -report

MELBOURNE, March 25 Mon Mar 24, 2014 10:42pm GMT

(Reuters) - An independent commission has blocked the Papua New Guinea government from taking up a A$1.2 billion loan it lined up to buy a 10 percent stake in PNG oil and gas producer Oil Search, Radio New Zealand reported on Tuesday.

PNG's Ombudsman Commission has frozen the loan while it investigates whether Prime Minister Peter O'Neill followed all the correct legal procedures in deciding to borrow the money, Radio New Zealand's PNG correspondent said.

In February, O'Neill approved plans for the government to buy new shares in Oil Search, giving it just over a 10 percent stake for A$1.2 billion. That allowed the government to gain a new stake in Oil Search after it gave up a bigger holding to Abu Dhabi in a A$1.68 billion convertible bond deal.

The move to borrow $1.2 billion from UBS was opposed by former treasurer Don Polye, who said it breached budget guidelines and was done without approval from parliament. Polye was dumped by O'Neill earlier in March.

Oil Search sold the shares to the government to fund a $900 million acquisition of a stake in PNG's biggest undeveloped gas fields, the Elk and Antelope fields. The share sale and deal were completed earlier in March.

A PNG government official was not immediately available to comment on what could arise out of the Ombudsman Commission's investigation. (Reporting by Sonali Paul; Editing by

[Tree]

PNG Ombudsman puts halt on government loan deal
Updated at 8:13 am today

Papua New Guinea's Ombudsman Commission has blocked a move by the government to take up a massive loan to buy back the state's shares in PNG's largest oil and gas company.
The Prime Minister, Peter O'Neill, had looked to take out a US$1.2 billion loan with Swiss bank UBS to buy back the government's shares in the company, Oil Search.
The former treasurer, Don Polye, was sacked by the government last week over his opposition to the loan.
Our correspondent in PNG, Todagia Kelola, says the commission has used its special powers to stop the loan because it has concerns with the way in which the loan was taken out.
"Everything is frozen until the Ombudsman Commission does its investigation and checks if the leaders that have made this loan followed all the procedures and processes of the law."
Our correspondent in PNG, Todagia Kelola.

[cybersssss]

"Todagia Kelola, says the commission has used its special powers to stop the loan"

They apparently have special powers, like a time machine perhaps? The DeLorean was used to go back in time and stop the issuing of bonds!

This has been done, bonds issued and shares purchased.

[jft310]

Puts a hurt on OSH . The OSH deal with the minority has cleared and the money disbursed to the former minority partners. OSH  may have to sell shares to someone else.

[Palm]

Yikes! Well OSH may just have to go to Plan A. UBS approved offering to buy the 16.3% interest from Total. That's sitting there untapped. If the UBS to PNG loan is blocked, what did OSH use to pay PAC LNG? Or has the cash not actually changed hands? It's all so confusing!!

[jft310]

Cash has traded hands. They B spending the new green some going into IOC share purchases.

[Palm]

This whole thing is turning into this:
http://youtu.be/K0Jg7pvVzKk

[Tree]

The all out, multi-directional pigmy cannibal attack to geld O'Neill has officially been launched.

[Palm]

**** Prime Minister Hon. Peter O'Neill stands his ground ****

Prime Minister Hon. Peter O’Neill has accused Opposition leader Belden Namah of being a self-appointed “financial expert”.He said this in response to Namah releasing a letter from State Solicitor Daniel Rolpagarea who advised the State that Parliament should approve the Government US$1.225 billion (about K3 billion) loan to fund its 10.1% stake in Oil Search.In a letter to acting Treasury Secretary Dairi Vele dated March 5, Ropalgarea said it was a requirement under the Constitution that Parliament must approve such “bridge-and-collar” loans.O’Neill told reporters last Friday: “I know the Opposition leader’s issue about the advice from the State Solicitor.“That was an earlier advice given to Treasury. There was an advice, which was later given to Cabinet which cleared the transaction.“So there’s a later advice from the State Solicitor saying that the transaction was in order for Cabinet to approve it.“What we have seen, of course, is a few leaders taking it upon themselves to become financial experts and try to undermine Cabinet decisions, undermine the integrity and interest of PNG citizens.”O’Neill said he was elected by the people to protect their interests and would not be influenced by Namah.“They gave me that mandate in 2012,” he said.“I know that Namah has been calling for my resignation every time he has a press conference.“Tell him to be patient, tell him to give us his policies. “We know he says that we’re stealing his policies.“Not long ago, he said he went on a three-month overseas tour because he was writing up his policies.“Now he can’t produce one so he’s giving all kinds of excuses.”