Pertamina in dispute with Fortune?s Indo Pacific Resources
Friday, November 23 2001 - 05:03 AM WIB
Indo Pacific Resources, which is listed in Canadian Venture Exchange (CDNX), is a wholly owned subsidiary of Canadian Fortune Oil and Gas Inc.
The source said that Pertamina would still give IPR until this Friday to settle its obligation.
?If the company fails to give an account of its action today, Pertamina will have to bring the case to the police,? the source said.
The source added if the case could not be settled, Pertamina would ask Government to terminate IPR?s contract
IPS entered Indonesia in March 1999 by acquiring the Camar and Tuban oil fields in the Bawean Production Sharing Contract Block off shore East Java from GBF resources.
The acquisition also means that IPS would be responsible for GBF?s obligations including debts amounting up to $10 million owed to local vendors and the government in form of unpaid taxes.
IPS then appointed local company called PT Commissioning Services Indonesia (CSI) as contractor to develop the oil field.
On January 17, 2001, the contractor started to produce oil at 1,800 bpd for domestic market.
However, in May 2001, the production was halted due to several problems including leakages in production pipeline. But CSI has never been paid for its work. Total due is US$955 thousand.
In June 2001, IPS appointed a new contractor called PT Citra Joyo Karya Mandiri. But the obligations to the government, Pertamina and CSI had not been settled.
In November the company smuggled out some 51,761 barrel of oil from Bawean production. Production activity was then halted again. Another source said that IPS had previously tried to smuggle oil to Canada.
Fortune?s Jakarta official when asked to clarify the matter refused to give comment.
?I have no right to comment on that,? said Restu Priyambodo, Fortune?s production coordinator. (arri/alex)