Analysts predict Woodside will up its takeover offer for Oil Search, business leader estimates K1.5 billion in foreign currency waiting for processing, and NZ re-opens its trade office in Port Moresby. Your weekly digest of the latest business news.

Woodside Petroleum is reportedly seeking talks this week with the PNG government to try and sweeten its A$11.6 billion (K22.83m) takeover bid for Oil Search. Last week’s offer implied a 14% premium for Oil Search, according to analysts, but Oil Search rejected the proposal, saying it was ‘highly opportunistic and grossly undervalues the company’. Hong Kong analysts Bernstein Research say there is a better than 50% chance that Woodside will increase its offer in the next 30 days.

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The Australia–PNG Business Council’s Phil Franklin

The President of the PNG branch of the Australia–Papua New Guinea Business Council, Phil Franklin, says about K1.5 billion in foreign currency orders with PNG-based commercial banks is awaiting processing. He told a council breakfast attended by former Australian Prime Minister, Tony Abbott, that PNG’s foreign currency situation is affecting the ability of businesses to purchase goods and services from Australia, compelling some companies to extend credit to their subsidiaries or delay purchases until the problem is rectified.

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NZ Prime Minister, John Key, says the re-establishment of New Zealands trade commissioner position (see People Moves) reflects a strong interest by New Zealand companies in the PNG market. Key says PNG is NZ’s second largest trading partner in the region.

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Julie Bishop is expected to retain her role as Australia’s Foreign Minister, following the election of Malcolm Turnbull as Australia’s Prime Minister, replacing Tony Abbott, who was ousted after serving just under two years.

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Airlines PNG staff at ATR Singapore. Credit: Airlines PNG

Airlines PNG flight attendants have been training in Singapore in preparation for the arrival of the airline’s first ATR 72-600 aircraft next month. Chairman Murray Woo has told shareholders the airline will be a 100% ATR operator by 2020. He says three ATRs will be operating by February 2016 and 7 by December 2017.

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PNG-owned Pearl Resort in Fiji has re-opened for business after undergoing extensive redevelopment. It is owned by the Mineral Resources Development Company and landowner partners from Southern Highlands, Gulf and Western provinces, which have invested K106 million in the project.

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The Australian newspaper has released a special report on Papua New Guinea to commemorate the country’s 40th birthday this week.

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The annual Lukim PNG Nau tourism expo will be held on 27 September at the Port Moresby Nature Park.

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Bank South Pacific is anticipating the second half of the year to be difficult, but CEO Robin Fleming says he hopes to match the first half year’s result, when the bank recorded a profit after tax of K266.95 million.

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The Star Mountains project. Credit: Highlands Pacific.

Highlands Pacific Ltd has improved its cash position in the first half of 2015, reporting a balance of US$10.5 million up to the end of June, bolstered by a US$5 million payment from new joint venture partner, Anglo American plc. In the second half of the year, Managing Director John Gooding said, the company would continue to see solid progress, including ‘completion of the Frieda River feasibility work, continued exporation at Star Mountains, further progress in ramp-up of production at Ramu and the potential for more exploration at Sewa Bay’.

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Credit Corporation says it is satisfied with its half-year results despite a downturn in the economy. Chairman Garth Mcllwain reports net profit after tax was K52.17 million compared to a record of K28.68 in June 2014.

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City Pharmacy Group is flying in fresh vegetable and fruit from Mt Hagen in the company’s efforts to support local farmers. Chief executive Ravi Singh says the company flies in five tonnes of vegetables each week.

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Over 60% of respondents to a Business Advantage PNG poll on tax reforms say they would prefer a reduction in personal tax rates in any revamp of PNG’s tax regime. You can participate in the poll and read analysis from PricewaterhouseCoopers’ Jason Ellis here.

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The DC3 at Lae Botanical Gardens.

And finally, Lae businesses, individuals and plane enthusiasts have come together to restore a WWII RAAF DC-3, which sits in the Lae Botanical Gardens. The restoration work includes building a shelter to protect the plane from the elements, compiling a history of the plane and its use during WWII, as well as plans, archival footage and photographs, according to Curator, Michael Lovave.