BPH Migas seeks to settle Pertamina?s dispute
Thursday, September 29 2005 - 02:54 AM WIB
?We are seeking to settle the dispute out of court,? BPH Migas chairman Tubagus Haryono said.
He said the agency had met Igas and would hold a similar meeting with Pertamina to find a solution to the dispute.
Igas is the natural gas supplier for big industrial plants in Cilegon and Cibitung such as PT Candra Asri, PT Dong Jin, PT Kayaba Indonesia, PT LG Philips, Displays Indonesia and PT Essar Indonesia.
Pertamina started curbing gas supply to the firm on Aug. 21 after terminating the contract on July 30. Pertamina argued that Igas had yet to provide a Stand By Letter of Credit worth US$1.13 million as agreed upon in the Aug. 31, 2004 agreement.
Igas has refused to pay Pertamina for its gas because it claimed that it did not get enough supply from the firm. The firm has reported the case the police.
Pertamina?s spokesman Abadi Poernomo said Pertamina was ready to challenge Igas at court and had no interest to settle the dispute out of court.
?The door for negotiations with the firm has been closed,? he said.
He explained that Pertamina had signed a take-or-pay contract with Igas, under which the latter has to pay the state firm for the amount of gas stated in the contract whether or not it uses the gas. Igas did not receive the gas supply at the amount stated in the contract because the firm had failed to build its pipeline network on time, he said. (godang)