KPPU completed its assessment on the acquisition of Conocophilips Indonesia Inc Ltd.
KPPU on 13 March 2018 has completed its assessment on the share acquisition of Conocophilips Indonesia Inc. Ltd by Medco Natuna Pte Ltd, and issued a non-potential competition law infringement due to this acquisition.
Medco Natuna Pte Ltd is a subsidiary of the Medco Energy business group which owns several business lines, including oil and gas mining industry. ConocoPhilips Indonesia Inc Ltd has business activities in the upstream oil and gas industry, and currently controls the Block B of South Natuna.
KPPU’s analysis on the acquisition focused on the extent to which the acquisition affects the domestic market, and the extent to which the merging enterprises misuse the contract he has made with other business actors. Based on the assessment results and information obtained, KPPU found that in the upstream oil and gas industry Indonesia is highly regulated and competition occurs for obtaining the market.
The distribution of oil and gas products is also regulated by government regulation and in the implementation of the business activities, the parties are bound by the cooperation contract (KKS) with the Government, so it is not easy for business actors to cancel their on-going contracts following the acquisition.
Based on the above view, KPPU considered that the share acquisition of Conocophilips Indonesia Inc Ltd by Medco Natuna Pte Ltd has no impact on the upstream oil and gas industry in Indonesia. Therefore KPPU issues an opinion that there is no allegation of potential monopolistic practices and/or unfair competition due to the share acquisition of Conocophilips Indonesia Inc Ltd by Medco Natuna Pte Ltd.