The Independent Consumer and Competition Commission has given clearance to Kumul Petroleum Holdings Limited to acquire another five percent project interest in the PNG LNG Project from Santos proposed acquisition.
ICCC Commissioner and Chief Executive Officer Paulus Ain said ICCC made this decision following its assessment and considered that the proposed transaction will not affect competition or change the competitive dynamics of the market in PNG.
“The ICCC was satisfied that the Proposed Acquisition of up to a 5 percent project interest in the PNG LNG Project from Santos by KPHL would not likely have the effect of substantially lessening competition in any market in PNG,” Ain said.
He said the proposed acquisition would increase KPHL’s interest in the PNG LNG Project to 21.8 percent increasing PNG’s interest in the PNG LNG Project. This would contribute to achieving the objective of ensuring that the people of PNG benefit more through greater equity interest in the development of their natural resources.
“While the 5 percent additional interest acquired by KPHL is a positive investment in the PNG LNG Project, the ICCC considered that it does not give additional control of influence over the operation of PNG LNG Project and its related markets or any markets in PNG,” Ain said.
Ain added that the proposed transaction is just a transfer of project interest in the PNG LNG Project between two existing JV partners with non-operatorship interest that will have no impact on competition locally or globally.