I spoke to a person who is much more in touch with the political process in PNG than Pavel, and he thinks that this is actually positive for the project approval. He thinks that with the elections delayed, Parliament will remain in session and that any parliamentary reviews will not be stalled. He also think that this further empowers O'Neill, who voted for the delay last night and is very supportive of IOC's project. Also, notice that Oil Search's stock was up last night!
This news has had no noticeable impact on companies like newcrest or oil search who have big operations in png, so apparently it's only pavel and the ignorant investors who follow him that are concerned about delayed elections impacting png's reputation.
Quite frankly it is absolutely REMARKABLE, that someone following this company so closely as Pavel, knows so little about the political climate. Unreal. Let's hope for a bounceback tomorrow, then onward and upward as these deals are finalized, approved, rubber stamped, etc.
IOC's management team is arguing that this election development is a positive, as it keeps O'Neill in power and REMOVES uncertainty associated with PNG politics over the next few months. Even O'Neill voted for the delay, and now with Australia likely to threaten subsidy reductions to PNG, getting the LNG projects off the ground will be even more important for PNG's cabinet. Pavel, who seemingly knows very little about PNG politics has caused a great buying opportunity ahead of upcoming logging and DST results.
I checked out the Aussie response. There was no hint of any sanctions against PNG as Pavel suggested. He also suggested that election delay would scare aware investors. There was no indication that this was not a peaceful event dictated by finances and logistics.