Total files complaint over delayed project<\/p>\n
Fabiola Desy Unidjaja, The Jakarta Post, Jakarta<\/p>\n
With its bankruptcy trial in progress, Total E&P Indonesie has
\nfiled a complaint to the Indonesian National Board of Arbitration
\n(BANI) over its US$12 million in loses caused by delays to a
\nconstruction project by its contractor PT Sanggar Kaltim Jaya
\n(SKJ).<\/p>\n
Citing the contract, Total claimed that the contractor had to
\nbear all possible losses due to delays in construction projects
\ncaused by the subcontractor or third parties.<\/p>\n
Total lawyer Fredrik J. Pinakunary told a press conference on
\nMonday that the contract also stipulated that any dispute between
\nTotal and the contractors that could not be settled amicably
\nshould be settled through arbitration under the Rules of
\nArbitration of the Indonesian National Board of Arbitration
\n(BANI).<\/p>\n
\"This matter is mentioned in the contract. The contractor has,
\nin fact, failed to meet requirements as stated in the contract to
\ncomplete the construction project,\" he said.<\/p>\n
SKL had been named to construct platforms and a gas processing
\nplant at the Tunu field, and a pipeline at the Peciko field, both
\nof which supply the PT Badak plant in East Kalimantan.<\/p>\n
Total -- a local affiliation of the world's second-largest gas
\nproducer Total SA -- is facing a bankruptcy petition from PT SKJ
\nalong with subcontractor PT Istana Karang Laut (IKL). IKL is the
\nfirst plaintiff in the bankruptcy petition, while SKJ is the
\nsecond, despite its former position as Total's main contractor
\nfor the project.<\/p>\n
An audit by the Development Finance Comptroller (BPKP),
\nrevealed during the bankruptcy trial, claimed that Total was
\nobligated to pay some US$3.952 million in compensation to SKJ and
\n$3.178 million to IKL.<\/p>\n
Total's production -- an average of 2.39 billion cubic feet of
\nnatural gas per day in 2004 -- has made it the biggest gas
\nproducer in Indonesia.<\/p>\n
The contractor's lawyer OC Kaligis said Total's complaint to
\nBANI was baseless, saying it was only a move to influence the
\nongoing trial at the Jakarta Commercial Court.<\/p>\n
He claimed that he had not yet been informed about the
\ncomplaint but emphasized that it was Total's right to file its
\nreport.<\/p>\n
\"They don't have any proof, but it's their right to proceed
\nwith the complaint. We are thinking of turning this into a
\ncriminal case because they are lying,\" Kaligis told The Jakarta
\nPost.<\/p>\n
He said the complaint to BANI was presented as additional
\nlegal evidence by Total during the trial on Monday.<\/p>\n
The bankruptcy case is now in its last session with both
\nparties presenting evidence before the court. They will read
\ntheir conclusions on Wednesday before a verdict is handed down on
\nMarch 7.<\/p>\n
During the trail, Total's defense team presented additional
\nevidence, including letters from Kutai Kertanegara regency
\nadministration and legislative council that stated that Total
\ncontributed some 35 percent to the regency's budget.<\/p>\n
\"We hope the court will take our interests into account in
\norder to ensure security and stability in our regency before it
\nissues its verdict,\" stated a letter from Kutai council speaker
\nBachtiar Effendi that was read out during the trial.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/total-files-complaint-over-delayed-project-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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