Total files complaint over delayed project
Total files complaint over delayed project
Fabiola Desy Unidjaja, The Jakarta Post, Jakarta
With its bankruptcy trial in progress, Total E&P Indonesie has
filed a complaint to the Indonesian National Board of Arbitration
(BANI) over its US$12 million in loses caused by delays to a
construction project by its contractor PT Sanggar Kaltim Jaya
(SKJ).
Citing the contract, Total claimed that the contractor had to
bear all possible losses due to delays in construction projects
caused by the subcontractor or third parties.
Total lawyer Fredrik J. Pinakunary told a press conference on
Monday that the contract also stipulated that any dispute between
Total and the contractors that could not be settled amicably
should be settled through arbitration under the Rules of
Arbitration of the Indonesian National Board of Arbitration
(BANI).
"This matter is mentioned in the contract. The contractor has,
in fact, failed to meet requirements as stated in the contract to
complete the construction project," he said.
SKL had been named to construct platforms and a gas processing
plant at the Tunu field, and a pipeline at the Peciko field, both
of which supply the PT Badak plant in East Kalimantan.
Total -- a local affiliation of the world's second-largest gas
producer Total SA -- is facing a bankruptcy petition from PT SKJ
along with subcontractor PT Istana Karang Laut (IKL). IKL is the
first plaintiff in the bankruptcy petition, while SKJ is the
second, despite its former position as Total's main contractor
for the project.
An audit by the Development Finance Comptroller (BPKP),
revealed during the bankruptcy trial, claimed that Total was
obligated to pay some US$3.952 million in compensation to SKJ and
$3.178 million to IKL.
Total's production -- an average of 2.39 billion cubic feet of
natural gas per day in 2004 -- has made it the biggest gas
producer in Indonesia.
The contractor's lawyer OC Kaligis said Total's complaint to
BANI was baseless, saying it was only a move to influence the
ongoing trial at the Jakarta Commercial Court.
He claimed that he had not yet been informed about the
complaint but emphasized that it was Total's right to file its
report.
"They don't have any proof, but it's their right to proceed
with the complaint. We are thinking of turning this into a
criminal case because they are lying," Kaligis told The Jakarta
Post.
He said the complaint to BANI was presented as additional
legal evidence by Total during the trial on Monday.
The bankruptcy case is now in its last session with both
parties presenting evidence before the court. They will read
their conclusions on Wednesday before a verdict is handed down on
March 7.
During the trail, Total's defense team presented additional
evidence, including letters from Kutai Kertanegara regency
administration and legislative council that stated that Total
contributed some 35 percent to the regency's budget.
"We hope the court will take our interests into account in
order to ensure security and stability in our regency before it
issues its verdict," stated a letter from Kutai council speaker
Bachtiar Effendi that was read out during the trial.