Hess, fisherman may go to court to settle dispute

Oil and gas company Hess Corp. may go to take legal measures in solving dispute with fisherman in Penajam area, East Kalimantan over the amount of compensation that the firm has to pay for the damage caused to the fishermen's assets.

"It is very likely that a legal measure will be taken (to solve the dispute) because both partiers stick to their positions," Indro Purwaman Hardi, head of oil and gas upstream sector regulator BPMIGAS' representative office for Kalimantan and Sulawesi, said on Thursday.

The fishermen accused the firm's seismic activities had caused damage on their fish trap, demanding Rp 15 million (US$8890) in compensation per fish trap.

The firm however insisted that it was only willing to pay Rp 1.5 million in compensation per fish trap, citing that the fishermen just installed the fishing tool.

The dispute has been lasting for weeks. On Feb. 1, 2011, the angry fishermen held hostage officials fronm Hess and BPMIGAS for three hours at the Balikpapan city council after a mediation by the council fell through. The officials were finally freed by tens of police. (Giok)