PM survives confidence vote but still issues

Papua New Guinea Prime Minister Peter O’Neill survived a noconfidence vote yesterday, an outcome unlikely to end upheaval in a country developing lucrative projects with energy companies ExxonMobil Corp and French giant Total SA.

The Supreme Court last week ordered parliament to reconvene, for the first time since June protests between students and police boiled over into violent clashes, to allow the opposition to lodge a no-confidence motion against O’Neill.

Deputy Opposition Leader Sam Basil moved the motion at the opening of the session yesterday, detailing numerous accusations of corruption against O’Neill since he took office in 2010.

‘‘To make the wrong decision here would be a mistake,’’ Basil told parliament. ‘‘Today it is up to us on the floor to make a change.’’

But Basil only secured 21 of the 56 MPs needed to oust O’Neill, leaving unclear how long a strike by aviation, maritime and public transport workers that has effectively cut off the country, would continue.

Australia’s Oil Search Ltd on Thursday cleared the way for ExxonMobil to take over InterOil Corp for A$2.2 billion (NZ$2.35b), giving the US giant access to a rich new gas field to expand its exports from Papua New Guinea.

The move could lead Total and ExxonMobil to unite their competing gas interests in the country, cooperating to reduce costs as they battle cheap oil and liquefied natural gas prices.

However despite the growing resource wealth, corruption and violence are endemic, raising concern about its long-term stability and the ability to deliver a higher quality of life to citizens.