JP/12/Karaha
JP/12/Karaha
Pertamina appeals ruling in Karaha case
Moch. N. Kurniawan The Jakarta Post Jakarta
State-owned oil and gas firm Pertamina said on Friday it had filed an appeal with the Central Jakarta District Court against an arbitration ruling ordering Pertamina to pay US$261 million to independent power producer Karaha Bodas Co. LLC in compensation for the suspension of a power project in 1998.
Pertamina's finance director, Ainun Naim, said the appeal was filed in response to legal actions by Karaha, which won confirmation from the U.S. Federal Court in Houston, Texas, and began seizing Pertamina assets around the world to satisfy the ruling.
"We filed the appeal today (Friday). The international arbitration ruling should be based on Indonesian law as the case occurred here," he told The Jakarta Post.
Karaha entered into contracts with Pertamina and state electricity company PT PLN in 1994 to develop a geothermal power plant in Karaha Bodas, West Java.
It had invested $100 million developing the project when the government suspended it, along with other independent power plant projects, in late 1997 to help ease PLN's financial burden during the economic crisis.
The moved prompted Karaha to file a suit against Pertamina, PLN and the government with the International Arbitration Board in Switzerland in 1998.
In December 2000, the arbitration board issued a ruling ordering both Pertamina and state electricity company PLN to pay $261 million to Karaha, plus 4 percent interest per year, beginning from January 2001.
In December last year, Karaha won a confirmation from the U.S. Federal Court in Houston approving the execution of the arbitration board's ruling.
The company began a campaign to seize Pertamina's assets around the world, including in Texas, New York, Delaware and Canada, following Pertamina's refusal to pay the compensation.
2. Duit ( 2 x 21) ;DJ; ANPAf..r.. Asian-Currencies-Mixed-Lat Asian Currencies Mixed Late; HKD Dlr Wet Blanket On Mkt JP/
Asian monies mixed late HK dollar wet blanket
Netty Ismail Dow Jones Singapore
Asian currencies were mixed late Friday, after largely relinquishing their earlier gains as renewed jitters over the Hong Kong dollar's fate overwhelmed the support from a strong Japanese yen and growing optimism of a U.S.-led economic recovery, dealers said.
Federal Reserve Chairman Alan Greenspan's markedly more upbeat assessment of the U.S. economy Thursday, compared with his comments made just last week, failed to sustain the recent upward momentum in Asian currencies.
"You would expect good sentiment on global reflation because of Greenspan's speech last night and the strength of the yen to help Asian currencies," said Mansoor Mohi-uddin, a regional currency strategist at UBS Warburg.
Instead, anxieties about the Hong Kong dollar peg and the unwinding of short yen positions against Asian currencies tossed a wet blanket on the market, he added.
The risk premium on holding one-year Hong Kong dollar forward shot up to 225-270 to the spot rate, compared with 160-170 late Thursday.
Dealers blamed the rise in Hong Kong dollar forward premiums to a report issued recently by U.S.-based consultancy Medley Global Advisors, questioning the future of the Hong Kong dollar's peg to the U.S. currency.
Late Friday, the Singapore dollar was slightly weaker at S$1.8213, compared with S$1.8208 late Thursday.
After posting its biggest single-day gain against the dollar in three-and-a-half years Thursday, the dollar was quoted at 127.72 yen at 0920 GMT (4.20 p.m. Jakarta time) Friday, above 126.99 yen in New York but well below 129.91 yen in Tokyo late Thursday.
The South Korean won ended barely changed against the U.S. dollar, but weaker against its Japanese counterpart - which continued to outperform the rest of the region's currencies.
Late dollar purchases by offshore participants and importers in South Korea pared the won's earlier gains, dealers said.
The dollar ended at 1,314.3 won, steady compared with 1,314.5 won Thursday. The dollar hit an intraday low of 1,306.5 won Friday.
The yen was quoted around 10.29 won, higher than 10.17 won late Thursday.
The U.S. dollar closed at NT$34.947, down from NT$34.989 Thursday. The U.S. dollar hit an intraday low of NT34.886. Dealings were valued at US$634 million.
The Thai currency was marginally stronger at 43.250 baht to the dollar, compared with 43.275 baht late Thursday, but was off its new one-year high of 43.110 baht reached early Friday.
On the Philippine Dealing System, the dollar ended at 50.97 pesos, relatively steady compared with 50.99 pesos Thursday. The dollar opened at its intraday low of 50.90 pesos, but spiked toward 51 pesos toward the close.
The Indonesian rupiah retreated to Rp 10,035 against the dollar, compared with Rp 9,945 late Thursday, as local corporations snapped up the U.S. currency following its slide to a fresh five-month low of Rp 9,890 earlier in the day.
3. Belum
4. Oil ( 2 x 18) ;AFP; ANPAf..r.. Oil-price Oil prices eases on UN-Iraq talks JP/OIL
Oil prices eases on UN-Iraq talks
Agence France Presse London
The price of oil eased off recent five-month high points on Friday after a meeting of UN Secretary General Kofi Annan and the Iraqi foreign minister eased concerns about possible military action against Baghdad.
Benchmark Brent North Sea crude for April delivery fell to US$22.75 in morning trading here, from $23.30 on Thursday evening. At one point on Thursday, the April Brent broke through $24 for the first time since September.
In New York, the April light sweet crude reference contract closed up 56 cents at $23.71 on Thursday, having also reached five-month highs earlier in the day.
Analysts have attributed much of the recent revival in the oil price to signs that the U.S. economic recovery is on the mend. U.S. Federal Reserve chairman Alan Greenspan said on Thursday that "an economic expansion is already well under way."
But prices have also been beefed up by rising concerns that Iraq, an important source of oil which also enjoys support from some other Arab producers, might be a future target of the US-led 'war on terrorism'.
Commerzbank oil watcher Clay Smith said that the latest talks on Thursday between Annan and Iraqi Foreign Minister Naji Sabri on the possible return of UN arms inspectors to Iraq had gone some way to calming market jitters over Iraq, and the price of oil had come off recent highs.
"The intense nervousness has been calmed down slightly," Clay said.
"An oil price at $23 is not sustainable under the current fundamental dynamics," he told AFP.
Iraqi Foreign Minister Naji Sabri told reporters after Thursday's talks: "We had a constructive and positive exchange of views."
A UN spokesman in Washington, Fred Eckhard, said that as well as the issue of arms inspectors, the pair had discussed problems dating from the 1990 Iraqi invasion of Kuwait, such as missing persons and the return of Kuwaiti property.
5. gold ( 2 x 20) ;Reuters; ANPAf..r.. Market-Precious-Report Gold easier in Europe, hovers at one-month low JP/
Gold easier in Europe, hovers at one-month low
Reuters London
Gold prices were easier around one-month lows in Europe on Friday, struggling to stay above the bottom of their new range after long liquidation overnight, traders said.
The yen's rally and firmness in the Nikkei index prompted long liquidation in gold, contributing to bullion's retracement towards US$290.00 from levels near $300.00 last week. Gold eased marginally under critical support at $290.00, but some buying interest emerged at the lows.
A stronger yen means that yen-holders now have less incentive to sell and switch to gold in an effort to protect themselves from a depreciating currency.
In early trading, prices touched $288.15 but eventually regained some lost ground and at 1119 GMT spot gold was indicated at $289.00/289.50.
The market is now veering towards the lower end of a $288.00/292.00 range. Any breach of $288.00 could see stops drive gold back towards the low-$280s, they said.
"It's basically a technically-driven market, it's just following what the charts are indicating," one trader said.
"I can't see the market collapsing...the market is going to be in support territory between here and all the way down to $286.00. But, on balance, I think the market will hold these areas of support," another trader said.
The metal was fixed softer in the morning at a one-month low of $289.30 a troy ounce versus Thursday's afternoon fix at $291.00 an ounce.
Activity is expected to pick up later once COMEX opens. Latest U.S. payroll data, as well as the COMEX option expiry, is expected to lend some direction to the market, traders said.
Spot silver was almost unchanged, and was last indicated at $4.47/4.49 from Thursday's close at $4.48/4.50.
Spot platinum was quoted at $515.00/520.00 against $506.00/511.00 in New York, in a market supported by buying interest. Palladium was at $364.00/374.00, slightly up from $360.00/370.00 previously.