Court rejects bankruptcy claim against Total

A Jakarta court on Tuesday dismissed a bankruptcy lawsuit against the Indonesian unit of giant French oil company Total SA filed by local contractors.

Two contractors, namely Sanggar Kaltim Jaya and Istana Karang laut filed the petition in January claiming Total E&P Indonesie failed to pay them $7.1 million for construction of a gas processing plant in Tunu field, East Kalimantan.

Total signed a contract with PT Sanggar Kaltim Jaya (SKJ) in 2001 to build platforms and gas processing plants in Tunu field in East Kalimantan. SKJ later subcontracted the work to Istana Karang Laut.

"The Jakarta commercial court rejected the plaintiffs' bankruptcy petition against Total E&P Indonesie," said Agus Subroto, the head of the three judge central Jakarta commercial court panel.

The plaintiffs said they would appeal the decision to the supreme court.

Total's lawyer welcomed the ruling.

"We welcome the decision of the commercial court as they have clearly overseen the case. This will blow fresh air into the investment climate in Indonesia," Todung Mulya Lubis, a lawyer for Total E&P Indonesie, told reporters.

Total, a French company that supplies gas to Indonesia?s biggest liquefied natural gas plants, operates Mahakam oil and gas block off East Kalimantan, which produces around 2.5 BCFD of natural gas which is supplied to Badak NGL.(godang)