Court rules in favor of Husky-CNOOC

The South Jakarta District Court has ruled in favor of Husky-CNOOC Madura Ltd and PT COSL Indo, overturning an earlier decision of the Business Competition Supervisory Commission (or KPPU), Bisnis Indonesia reported on Tuesday.

The court ruled on Thursday that there was no evidence of unfair business practices conducted by Husky-CNOOC in the tender of jack-up drilling rig services for the BD field in the Madura Straits PCS, offshore East Java.

The paper quoted KPPU lawyer Nurul Fadilah as saying that her client was considering to make an appeal with the Supreme Court.

KPPU in November of last year ruled that Husky-CNOOC Madura Limited has breached Law No 5/1999 on anti-monopoly practices and unfair business competition when carrying out tender of the jack-up drilling rig services.

KPPU said that Husky-CNOOC has colluded with PT COSL INDO, the winning bidder, in the tender process as can be seen from the fact that there has been an affiliation between PT COSL INDO and Husky-CNOOC Madura Limited. It said that Husky invited PT ENSCO Sarida Offshore to participate in the tender merely for formality by setting up unusual drill pipe requirement and post-bidding, and the fact that PT COSL INDO did not meet the personnel requirement.

Both Husky-CNOOC Madura Limited and PT COSL INDO denied the accusations, with Husky saying it is not affiliated with PT COSL INDO, while the latter said that its affiliation with CNOOC Group is allowed according to the law.

KPPU ruled Husky-CNOOC Madura Limited to pay penalty of Rp 12.8 billion, while PT COSL INDO must pay penalty of Rp 11.6 billion. The two companies then filed a lawsuit with the South Jakarta District Court to counter the KPPU ruling. (*)