Premier, Conoco, Gulf end dispute
Friday, February 16 2001 - 04:00 AM WIB
The arbitration process between British oil and gas firm Premier Oil versus American Conoco Indonesia and Canadian Gulf Indonesia had been settled "amicably," according to Gulf Indonesia president Bill Fanagan.
Fanagan said that the three had agreed to end their dispute, but declined to give details.
"That's the private matter among the companies and all I can tell there's no guilt on party," he told reporters at the celebration of Gulf Indonesia's 40-year operation in the country.
Earlier last year, Premier brought Gulf and Conoco to arbitration court in London. The source of the dispute, however, was unclear as Gulf, Conoco, Premier and Pertamina (state-owned oil and gas firm) declined to comment.
But sources in the industry said that the arbitration stemmed from Premier objecting Conoco's plan to use the West Natuna Gas Transportation System (WNGTS) pipeline to transport gas from the latter's gas field in West Natuna to Malaysia's Petronas. The three jointly own the WNGTS pipeline. Gulf was brought to arbitration for agreeing to Conoco's plan.
The WNGTS pipeline is currently used to transport gas from the three companies' gas fields in West Natuna to Singapore.
Premier, said the source, wanted to participate in Malaysian gas deal, but Conoco objected because at the time Petronas made inquiry that only Conoco which had a certified and uncommitted gas reserve to meet Petronas demand.
Separately, Pertamina senior official Trijana told Petromindo that the first sales deal of 250 mmcfd to Petronas would solely come from Conoco's gas field. However, he said, Petronas had also expressed its interest to buy another 100 mmcfd from Premier's gas field in West Natuna Block A PSC.(Alex)