PNG COMMISSION OKs INTEROIL-BP DEAL

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PORT MORESBY, Papua New Guinea (The National, April 27) – The Independent Consumer and Competition Commission (ICCC) has granted the proposed acquisition of BP PNG Ltd by InterOil Ltd.

ICCC acting general manager Thomas Abe said yesterday the decision to grant clearance was not easy, considering that this is an important industry on the verge of undergoing major structural changes where efficiency, competitiveness and the net gain to the economy and the people remain the main determining factors.

"In addition, it was important to take into account the fact that InterOil, through its 30-year agreement with the government, will soon become the principal supplier of petroleum products in PNG and the ICCC had to ensure the acquisition does not in any way adversely affect the market," Mr. Abe said. 

Under these circumstances, he said it was important to seek some clear understanding and assurances from InterOil that the varying interests resulting from this acquisition are adequately safeguarded and protected. 

It was important to seek InterOil’s understanding and assurances that all participants in the market will enjoy the same terms and conditions in their dealings, particularly in relation to price and availability of the product.

However, Mr. Abe expressed satisfaction that all market participants will be afforded the same treatment by InterOil, free of any discriminatory or preferential treatment.

He also noted InterOil’s acknowledgement that its proposed future acquisition and commercial arrangements with Shell’s distribution business cannot be completed without clearance or authorization under the ICCC Act. 

April 28, 2004

The National: www.thenational.com.pg/

 

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