KPPU penalizes Husky-CNOOC Madura for breaching monopoly law

The Business Competition Supervisory Commission (or KPPU) announced on Monday that Husky-CNOOC Madura Limited has breached Law No 5/1999 on anti-monopoly practices and unfair business competition when carrying out tender of jack-up drilling rig services for the BD field in the Madura Straits PSC, offshore East Java.

KPPU said in a statement 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.

Editing by Reiner Simanjuntak