Canadian court upholds appeal against ExxonMobil takeover bid for InterOil, BSP CEO says 2017 Budget reflects prevailing conditions, and Sepik Plains holds high potential for beef industry. Your weekly digest of the latest business news.

The Chairman of  InterOil, Chris Finlayson, has said the company is considering an appeal to the Supreme Court of Canada after the Appeal Court of Yukon upheld an appeal against the  US$2.5 billion sale of InterOil to ExxonMobil. Founder and former CEO, Phil Mulacek objected to the original sale terms, saying they did not properly remunerate InterOil shareholders. Chris Finlayson, Chairman of InterOil also says ExxonMobil is ‘fully supportive of the transaction’. Discussions are taking place with ExxonMobil to extend the purchase date.

***

Bank of South Pacific CEO, Robin Fleming, says the 2017 Budget settings are reflective of the macroeconomic conditions prevailing for countries whose economies are largely commodity based. Fleming told The National that, with revenues constrained, the Government had little option but to deliver a prudent budget that focused on reducing expenditure and introducing other revenue measures, including improved tax collections.

***

The Sepik Plains holds a huge potential for cattle industry development in PNG, says David Galvin, Chairman of the Australian Livestock Export Corp. According to Loop PNG, Galvin toured the Sepik Plains last weekend.

Australian High Commissioner, Bruce Davis.

Australian business investment in PNG stands at K45 billion, according to Australia High Commissioner Bruce Davis. He told the UPNG/ANU 2016 Update conference that two-way trade amounted to almost K14 billion last year, with 60 per cent of that trade going from PNG to Australia, adding that more than 5000 Australian companies run businesses in PNG.

***

The PNG Forest Industries Association has objected to the proposed changes to the log export tax, announced last week in the 2017 National Budget. CEO Bob Tate told the Post Courier that the changes would put at risk a major national industry and greatly reduce government revenue and foreign exchange earnings, which exceeded K1 billion in 2015. He said this could result in as many as 15,000 job losses.

***

Spanish energy firm Repsol, in its capacity as operator of the Stanley joint venture, has reportedly engaged Kramer Ausenco to undertake a power generation feasibility study using gas from local petroleum development licence 10, in Western Province.

***

APEC Haus. Credit SPTO

The government will build a special centre to host the 2018 APEC Leaders Summit and the Leaders Dialogue with the APEC Business Advisory Council. APEC Haus is expected to be completed by August 2017 and will be constructed on reclaimed land from the foreshore at the juncture of Paga Hill Ring Road and Ela Beach. Prime Minister Peter O’Neill said that after APEC 2018 the APEC Haus would become a major tourist attraction and event facility.

***

Provincial leaders in Solomon Islands have agreed to adopt a federal constitution and change the country’s system of government, reports Loop PNG. The premiers of the nine provinces and the mayor of the capital, Honiara, signed an agreement to pursue the introduction of a federal system of government.

The South Pacific Islands brand logo.

The South Pacific Tourism Organisation (SPTO) is launching a new regional destination brand ‘South Pacific Islands’ at Asia’s largest professional travel show this week in Shanghai. SPTO Chief Executive Chris Cocker says the brand ‘should help to solidify an identity for the South Pacific in China and drive greater tourism arrivals from this important emerging market to the Pacific Islands.’