LNG Energi demands huge compensation from Mitsubishi

Tuesday, April 12 2011 - 02:12 AM WIB

PT LNG Energi Utama has demanded that Japan-based Mitsubishi Corporation pay US$709 million in compensation for Mitsubishi?s involvement in a tender manipulation case on the Donggi-Senoro LNG plant project in Central Sulawesi, The Jakarta Post reported Tuesday.

LNG Energi Utama?s lawyer OC Kaligis said Monday that the manipulation, involving Mitsubishi, state oil and gas firm PT Pertamina and PT Medco Energi International, had cost his client losses in initial investment and profit opportunity.

?Mitsubishi gathered confidential information about our client which was submitted as requirement to join the beauty contest to become one of operators of the Donggi-Senoro LNG plant. That aimed to kick our client from the competition,? he was quoted by the Post as saying.

The revelation of the confidential information enabled Mitsubishi to submit more competitive prices and then won the tender, Kaligis continued. He claimed that as the victim of the tender manipulation, LNG Energi Utama deserved remedies.

LNG Enegi also demanded the LNG project be suspended for a while until there is a legal action on the tender manipulation.

On Jan. 5, The Business Competition Supervisory Commission (KPPU) fined PT Pertamina, PT Medco Energi Internasional (MEI) and Mitsubishi Corporation for unfair business practices in the selection of a partner to build the Donggi-Senoro LNG plant.

The commission then fined PT Pertamina Rp 10 billion [around US$1.1 million], PT Medco Energi Internasional Rp 5 billion and PT Medco E&P Tomori Sulawesi Rp 1 billion and Mitsubishi Corporation Rp 15 billion.

Those companies directly filed an appeal request after hearing the decision.

Meanwhile director general of oil and gas at the energy and mineral resources Evita Herawati Legowo said that the development of the LNG plant in Donggi Senoro, Central Sulawesi would go as planned.

The antimonopoly verdict against Mitsubishi, Pertamina and Medco had nothing to do with the LNG project, she told Bisnis Indonesia daily. (*)

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