Australian oil company InterOil Corp. said Friday that its application for authorization to purchase an aviation fueling business in Papua New Guinea, has been rejected by Papua New Guinea's competition authority.
In July, a subsidiary of InterOil sought to purchase Shell Oil Products (PNG) Ltd., the owner and operator of an aviation fueling business located at the Jackson International Airport, in Port Moresby, Papua New Guinea. In a statement made in July, InterOil said it would acquire the Shell entity for $7.5 million.
The authority said the move could substantially hurt competition in the market.
"We will continue to explore alternative means by which to grow and improve our aviation business in Papua New Guinea, while continuing to monitor other acquisition opportunities in the region," said Phil Mulacek, CEO of InterOil.
Shares of InterOil rose 35 cents to $50.71 in morning trading.