Malaysia's The Star Online reported that the move was expected to bulk up CBIP's earnings for the 2016 and 2017 financial years.
The palm oil equipment manufacturer and builder will construct a mill with the ability to process 60 tonnes per hour for ENBPOL's Narangit facility in Rabaul, East New Britain Province.
In 2014, CBIP built a similar mill for another PNG palm oil company, the Rimbunan Hijau group.
Last month, Indonesia and Malaysia - the world's largest producers of palm oil - announced the establishment of the Council of Palm Oil Producing Countries, an OPEC-styled body which focuses on developing downstream industries, managing stocks and co-ordinate biodiesel mandates and replanting programs rather than directly supporting prices.
It is based in Jakarta, with both countries initially contributing $US5 million to the council's secretariat.
Editor's note - correction:
This story previously reported that Sime Darby-owned New Britain Palm Oil Limited (NBOL) awarded the contract to CBIP. This is incorrect.
The correct company is East New Britain Palm Oil Limited (ENBPO) which awarded the contract to CBIP.
The editor wishes to apologise for this oversight.