ExxonMobil reportedly behind rival bid to Oil Search for InterOil, claims Momis may sue Rio Tinto for Panguna damages and cruise liner tourism could see five-fold growth by 2017. Your weekly digest of the latest business news.

ExxonMobil is reported to be behind a US$2.2 billion takeover bid for InterOil, threatening an existing offer from Oil Search (OSH). InterOil found the large Elk-Antelope gas resource, set to be the source for PNG’s next LNG project. OSH Managing Director Peter Botten says an OSH takeover would ‘optimise co-operation and/or integration of the existing PNG LNG gas project and the proposed Papua LNG project.’ He says the InterOil board has recommended the OSH offer, which has the backing of the PNG government. French major, Total, is backing the OSH bid, in return for 60 per cent of InterOil’s assets. InterOil shareholders meet on 28 July in New York to consider the offer.

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ABG President John Momis

The President of Bougainville, John Momis, says his government may sue the mining giant, Rio Tinto, according to NEW Dawn FM. Moms is reported to be saying that Rio is walking away from its responsibilities for damages caused by the Panguna mine. Rio Tinto made the announcement after a two-year review of its operation and reports the national government has taken up the offer of 17.4 per cent of the stock in Bougainville Copper Ltd. Rio Tinto is also giving the Autonomous Bougainville Government (ABG) 17.4 per cent of the stock, meaning both governments will have 36.4 per cent each, with small shareholders holding the rest. Momis was reported to have said: ‘If the National Government were to have equal control of the Panguna mine, that would be contrary to the ABG gaining control of mining in Bougainville. It would be contrary to the aims of autonomy’.

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Cruise liner tourism in PNG and the Solomon Islands could grow five-fold within two years, according to a study commissioned by the Australian Government, the IFC and cruise operator Carnival Australia. That means income would soar from its current level of A$0.6 million (K1.4 million) to A3.3 million (K7.75 million). Carnival Australia will have six ships visit the Solomon Islands this year, a three-fold increase from last year, says Executive Chairman Ann Sherry. Each cruise ship arriving in Honiara brings A$46,169 (K109,000) worth of direct benefits to a range of businesses and organisations.

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The UN’s Special Envoy for El Nino and Climate, Ambassador Macharia Kamau, says, according to EMTV, that PNG should prepare for potential heavy rains in December, due to the El Nina effect. Meanwhile, emergency food aid is being handed out to tens of thousands of people in the PNG Highlands who are still struggling to cope after their crops were destroyed by frost and drought last year.

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Sir Mekere Morauta, the Chairman of the PNG Sustainable Development Program’s Long Term Fund, is claiming funds under management have increased from K3.4 billion to K3.9 billion, according to Loop PNG. Morauta tabled the company’s annual report in Port Moresby this week.

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Rawson Resources has signed an agreement to acquire Moira, which currently has a 100 per cent working interest in Petroleum Prospecting Licence (PPL) 391, located along the coast, north of Wewak.

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The Chairman of diversified agribusiness, NGIP Agmark, Donald Manoa, says 2015 was challenging, with revenue falling from K244.5m to K234.2m over the year, driven by hardware sales reductions and a poor result in the coffee division.

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Petromin Holdings Limited has officially changed its name to Kumul Minerals Holdings Limited (KMHL), according to The National. Managing Director, Thomas Abe, said KMHL would now manage all the mineral investments for the country.

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The Government is in the process of reviewing the financial sector to improve services and promote inclusive growth, according to The National. The review team will include staff from Bank of Papua New Guinea and the Department of Treasury with technical support from the World Bank, it is reported.

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And finally, the University of Papua New Guinea has terminated classes for the rest of 2016, because of continuing intimidation and harassment of students and staff through criminal activities, Acting Chancellor Nicholas Mann told the Post-Courier.