PHE acquisition of Inpex Jawa not against law: KPPU

By Romel S. Gurky

The recent acquisition of Inpex Jawa Ltd by Pertamina?s subsidiary PT Pertamina Hulu Energi is not against fair competition law, the commission for the supervision of business competition (KPPU) says.

KPPU spokesman Ahmad Junaidi said in Jakarta on Saturday that based on the assessment of the anti monopoly agency on the notification filed by PT Pertamina Hulu Energi on June 28, 2011, the acquisition did not violate the business competition law.

?Based on the result of the KPPU examination, there are no indications of monopoly and unfair competition found in the acquisition,? he said.

Ahmad said that although the two companies were involved in four similar markets in gas exploration and production as well as in oil exploration and production, the acquisition would not cause monopoly because their shares in these markets were relatively small.

?In addition, the KPPU also bases its decision on the fact that the oil and gas industry is highly regulated where the appointment and supervision of a contract is closely monitored by the government,? he added.

Editing by Benget Besalicto Tnb