Exxon faces lawsuit by Aceh villagers over abuse allegation: Report

Exxon Mobil Corp., must face a lawsuit by villagers in Indonesia who say the company contributed to human-rights abuses by government security forces, Bloomberg reported.

U.S. Judge Louis Oberdorfer in Washington denied a motion by Irving, Texas-based Exxon to dismiss the suit on sovereignty grounds, saying that U.S. law trumps Indonesia's in deciding which court system should hear the case.

The villagers sued in 2001, claiming Indonesia security forces working for Exxon committed murder, torture and rape in Aceh province, where the company operates a government-owned oil and natural gas field and a pipeline.

The U.S. State Department urged the judge to dismiss the suit in 2002, saying it would violate Indonesia's sovereignty and harm the war on terror.(*)