An Australian Energy company is seeking authorization from the Independent Consumer and Competition Commission (ICCC) for its proposed merger with Oil Search Ltd.
The ICCC has formally announced this to key stakeholders, the public and participants in the oil and gas industry, that it has received an Authorization Application from Santos Ltd, an Australian energy company.
The Authorization Application is consistent with section 82 of the ICCC Act 2002, for business, mergers and acquisition. This process allows a business to seek approval from the ICCC before proceeding with any business mergers and acquisitions that would otherwise raise serious concerns.
Santos main activities include exploitation for development, production, transportation and marketing of crude oil and natural gas.
Santos with Asia is the leading supplier of natural gas and biggest supplier of domestic gas and it aims to become the leading Asia-Pacific LNG Supplier, and does not operate any assets in Papua New Guinea, as it is merely the holder of ownership interests in projects operated by other parties or Joint Venture partners.
Oil Search operates all of PNG’s producing oil fields and it exports and supplies crude oil to both international and domestic markets on behalf of its partners not including ExxonMobil. Oil Search owns PNG’s only oil pipeline and oil processing plant.
ICCC Commissioner and CEO, Paulus Ain said Santos and Oil Search entered into a binding Merger Implementation Deed, under which Santos proposed to merge with Oil Search via a scheme arrangement under PNG law.
“This proposed Authorization Application is before the ICCC to progress with. The ICCC is now inviting relevant stakeholders, key government departments and agencies and the public to provide comments and submissions on the likely competition effects this proposed merger may have on the oil and gas industry in PNG,” said Mr Ain.
He said that it is very important for all concerned stakeholders to independently asses the likely effects it may have on this merger and to provide their views and comments on any likely public benefits and detriments this proposed merger, if it proceeds, may have on other business, consumers, and the economy at large.