PAPUA New Guinea has reportedly raised A$1.68 billion to pay off a bond it issued to Abu Dhabi’s International Petroleum Investment Company in 2009.

Reuters reported the bond was exchangable for the PNG Government’s stake in Oil Search in March 2014 at a strike price of A$8.55 a share.

But instead of selling the stake, the government has elected to raise the money, which Reuters said was initially needed to help PNG pay its PNG LNG development costs.

Oil Search holds a 29 per cent stake in PNG LNG, which is due to begin first shipments of gas in the second half of 2014.