Government plans to merge Telikom, bmobile and DataCo, Highlands Pacific Chairman says PanAust’s resignation requests amount to a takeover, and PNG LNG reports 25 per cent increase in LNG. Your weekly digest of the latest business news.

Telikom, bmobile Vodafone and PNG DataCo are to be merged under Telikom, according to the acting Minister for Public Investment and State Enterprises, Charles Abel. The new entity will operate under a single board which will be headed by Telikom’s current chairman, Mahesh Patel, with representation from the previous boards of bmobile and DataCo. He said the restructuring is being undertaken by government to create co-ordination and efficiencies across management and infrastructure to build a stronger vertically integrated company.

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Oil Search expects to spend big this year, after returning to profit, with the bulk going on exploration and evaluation projects in Papua New Guinea. Oil Search anticipates spending about US$250 million (K794 million) to US$300 million (K952 million) on exploration and evaluation in 2017, part of its forecast capital costs of US$360–US$460 million (K1142 billion–K1460 billion). It outlaid US$217.6 million (K690 million) in capital costs in 2016. Managing Director Peter Botten says 2017 is shaping up to be ‘very busy’ with development of PNG LNG expansion projects.

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ExxonMobil PNG reports a 25 per cent increase in the amount of gas in the PNG LNG gas fields. It follows an independent review and recertification study. This brings the recoverable resource base to 11.5 tcf, which is a 25 per cent increase beyond the earlier 9.2 tcf assessment.

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Meanwhile, more than 1,000 villagers have reportedly protested in Port Moresby about their overdue royalty payments.

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InterOil has announced the Supreme Court of Yukon in Canada has approved its takeover by ExxonMobil, which will now own InterOil’s assets in the undeveloped Elk-Antelope gas fields, in the Gulf Province. Last week InterOil shareholders overwhelmingly approved a revised transaction agreement with Exxon Mobil with more than 91 per cent of  votes cast in favour.

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Papua New Guinea’s Governor-General, Sir Michael Ogio, has died in Port Moresby after a long illness. Government House said the 75-year-old died at the state residence on Saturday. Sir Michael, originally from North Bougainville, was entering the final week of his six-year term as Governor-General. The former defence minister, Bob Dadae, was due to take over the role after being nominated by Parliament early last week.

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PanAust has asked Highlands Pacific for the resignation of three of its board directors, reports The Post Courier. PanAust is seeking to remove Highlands Pacific’s Ken MacDonald (chairman), Ron Douglas (director), Mike Carroll and Dan Wood (independent director) and replace with three nominees from Chinese state-owned enterprise, Guangdong Rising Assets Management.

In a statement, Highlands Pacific chairman MacDonald said the PanAust proposal effectively would amount to a takeover of HPL without offering to acquire any shares, adding: ‘It is important for shareholders to be aware that HPL is currently in dispute with PanAust regarding the funding and methods of progressing the Frieda River project’.

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The World Bank has approved a credit of US$70 million (K223 million) to improve access to clean and reliable water supply services for the population of nine provincial towns and 10 rural districts. The WHO says only 40 per cent of the population has access to safe water, and just 20 per cent have access to safe, reliable sanitation.

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Executive Director of the Institute of National Affairs, Paul Barker, says a review by the Asian Development Bank reveals PNG’s state-owned enterprises performed poorly by international and regional standards. He says most SOEs were badly under-capitalised from the start, weakly managed, plagued with cronyism in board and management appointments and had lost many key professional and technical staff.

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Australia is funding an upgrade of roads in Buin township on Bougainville. The K4.8 million project will seal roads and provide all-weather access to Buin Secondary School, residences, shops and essential services.

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The ban on the harvesting of beche-de-mer (sea cucumber) in the 14 maritime provinces will be lifted in April, reportedly says Fishing Industry Association President Sylvester Pokajam. The ban was imposed in 2009 to replenish the stock because of overfishing.

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Supreme Court judge, Justice Ambeng Kandakasi, has reportedly stressed the need for Parliament to enact ‘whistle blower’ legislation to help rid the society of law breakers and corruption. He made the comments after finding the former general secretary of the Public Employees Association was unlawfully sacked by his superiors in 2015 after he queried some legal discrepancies within the organisation.

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New Zealand Foreign Minister, Murray McCully has asked the PNG Government to pay millions of dollars that is owed to New Zealand businesses. One company, Evaluation Consult, says it is owed more than K1 million. They, along with numerous others who do not wish to be named, are still waiting for payments to be made, reports Radio New Zealand.

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Government House, Parliament House and Police headquarters were without electricity for two days last week after power was disconnected for non-payment of outstanding bills. PNG Power reportedly said these institutions owe more than K1 million. The Post Courier quotes officials saying Government House owes PNG Power K200,000, Parliament House owes PNG Power K600,000 and the Department of Police has outstanding power bills of K300,000.

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A continent two-thirds the size of Australia has been found beneath the south-west Pacific Ocean, scientists reported in the journal of the Geological Society of America. The land mass of 4.5 million square kilometres (1.74 million square miles) is 94 percent underwater. Only its highest points, New Zealand and New Caledonia, poke above the surface. They say it could be the world’s seventh continent.

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And, finally, The National reported that nine new political parties registered in PNG on Friday. They are: the Paradise Kingdom Party, the PNG First Party, the Model Nation Party, the Trust PNG Party, the PNG Youths Party, the Nations Interest Party, the PNG Socialist Party, the Wantoks in Godly Services Party and the Papua New Guinea Human Rights Party. Two other new parties, the Grassroots United Front and the PNG One Nation Party will join the nine.