Gulf settles dispute with plantation company

The three-year land dispute pitting Canadian oil and gas company Gulf Indonesia Resources and a local government in South Sumatra against plantation company PT Sentosa Mulia Bahagia has ended with an out-court-settlement.

The three parties signed agreement to end the dispute on Friday but all the parties refused to reveal the details of the agreement.

The dispute started three years ago over a plot of land in the Musi Banyuasin area claimed by Sentosa Mulia Bahagia and used by Gulf for a gas-pipeline project.

The plantation company sued Gulf and the Musi Banyuasin regency administration, which allowed the Canadian company to use the land in the local District Court, demanding a certain amount of compensation for the use of the land.

It won the dispute in the local court but the High Court in Medan, North Sumatra ruled in favor of Gulf and the regency administration.

Sentosa Mulia Bahagia has appealed against the High Court's ruling but finally agreed to settle the dispute out of court.

Sentosa Mulia Bahagia was represented by Dahlan Kadir and Gulf by Deny Riadi in the agreement-signing event which witnessed by Musi Banyuasin regent Nazom Nurhawi.

Dahlan said with the agreement, Sentosa Mulia Bahagia expected there would be no conflict any longer with Gulf and both companies hoped to cooperate to secure the plantation and the gas pipelines in the area.

Dahlan refused to specify the amount of compensation paid to Sentosa Mulia Bahagia under the agreement, while the regency secretary Alex Noerdin said the regency administration neither received nor paid any compensation.

"With the agreement, the suit has been automatically revoked and (the case is) closed," Alex said. (*)