Karaha Bodas seeks to recover damages from Pertamina

Karaha Bodas seeks to recover damages from Pertamina

Agence France Presse, New York

Independent power firm Karaha Bodas said Monday it had launched legal efforts to seize assets of Indonesian state oil and gas company Pertamina to collect US$261 million in unpaid damages.

Karaha Bodas, a Cayman Islands firm, which is majority owned by Florida Light and Power and by New York-based Caithness Energy, said Pertamina had failed to pay damages awarded against it.

Karaha said it had invested more than $100 million in developing the Karaha Bodas geothermal contracts in Indonesia under 1994 contracts with Pertamina and another Indonesian entity.

But the projects were suspended by Indonesia in 1998.

Independent Swiss-based arbitrators ruled against Pertamina in December 2000, awarding Karaha about $261 million in damages, Karaha said in a statement.

The U.S. Federal Court in Houston, Texas backed that ruling with a judgment against Pertamina in December last year, it said.

But "Pertamina has still refused to pay any portion of the award or judgment," Karaha Bodas said in a statement. "As a result, Karaha has been forced to begin execution against Pertamina's assets around the world."

Karaha said it had filed garnishment and discovery requests on Feb.21 in Texas, New York and Delaware against banks believed to hold Pertamina funds, and against a number of Pertamina oil and gas partners.

It also began enforcement proceedings against Pertamina in Canada to attach assets there.

"Karaha will continue to vigorously prosecute these execution proceedings in any location where it can identify Pertamina assets," the company statement said.