BP Indonesia sued by supplier: Report

Friday, June 28 2002 - 05:04 AM WIB

PT Mestaco Swarnadwipa, a supplier company has taken out legal action against BP Indonesia at the South Jakarta District Court, for allegedly suspending their contract unlawfully, Australian Oil and Gas Today News reported on Friday.

PT Mestaco said it wanted US$650 million in compensation from BP and demanded the court announce that BP was against the law by violating the contract. PT Mestaco had supplied Halon 1301, the kind of gas used for fire extinguishers, since 1998 to BP.

However, it's alleged that in November 2000, BP accused PT Mestako of supplying a different type of gas and terminated the working contract.

The company said it had never supplied any other type of gas but Halon 1301 to BP and that BP' accusation had damaged its reputation in the business.

BP's lawyer, Eri Hertiawan, said BP terminated its working contract with the plaintiff due to PT Mestaco's violation of the contract by supplying BP with a gas that was different to Halon 1301.

Presiding Judge Bachtiar adjourned the hearing until next week. (*)

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