SPIJ protests Unocal move

JAKARTA (JP): Local pipemaker PT Seamless Pipe Indonesia Jaya (SPIJ), a subsidiary of the Bakrie Group, protested on Thursday the move of American oil and gas company Unocal Indonesia to unilaterally terminate a sales and purchase contract.

SPIJ president Nugroho I. Purbowinoto said in statement that it would suffer a loss of US$12 million due to termination of the contract.

He said Unocal had terminated the contract to buy pipes from SPIJ after citing a reduction in drilling activities.

Nugroho said Unocal's explanation did not tally with a later call from the company in a newspaper for pipes of a similar type previously provided by SPIJ under a sales and purchase contract. (jsk)