18/02/2015 (Radio Australia) - Papua New Guinea's palm oil industry has a new player in Sime Darby, but questions are already being asked about whether the country's reputation for sustainable practices is at stake.

Prime minister Peter O'Neill has welcomed the sale of New Britain Palm Oil to the Malaysian-based Sime Darby, saying that with its privatisation the PNG government was negotiating a possibility of buying 30 per cent of the company.

In a media release last week, Prime Minister O'Neill said the public financing of agricultural products, such as palm oil, could follow the success of the nation's investment in oil and gas assets.

And Paul Barker says Sime Darby has paid well above market price, which suggests its intent on expansion.