EXXONMOBIL PNG Ltd has welcomed the result of an investigation by the Independent Consumer and Competition Commission regarding its acquisition of InterOil.
It welcomed the conclusion reached that the transaction is not likely to substantially lessen competition in the domestic supply of natural gas. A company spokesperson said the company “is driving economic growth and is helping to produce significant, lasting benefits throughout the country”.
“We believe our involvement in the Papua LNG project will allow the operator Total to take advantage of synergies with PNG LNG to realise time and cost reductions that will benefit the government, co-venturers, landowners and communities,” the spokesperson said.
“We look forward to continuing dialogue with the Government in relation to third party access principles, domestic gas obligations and the maximisation of national value in new projects. ExxonMobil PNG is committed to delivering lasting opportunities to the people of Papua New Guinea.”
ICCC Commissioner and chief executive officer Paulus Ain said the multi-billion kina acquisition had negative impacts on competition in three potential markets.
They are the market for:
- Third party access to natural gas pipelines and other field project facilities;
- natural gas as alternate fuel for electricity generation; and,
- Natural gas as input in the petrochemical industries and production of liquefied petroleum gas.