Release: TOTAL E&P INDONESIE wins in commercial court
Tuesday, March 8 2005 - 06:39 AM WIB
?We are very pleased that the judges ruled in our favor. It is the best news we have had in some time,? said Roland Festor, President and General Manager of TOTAL INDONESIE. ?Finally, the Court said we?re right. This is a good day for the company, and the thousands of people we employ in Indonesia.?
The bankruptcy petition filed on January 14, 2005 alleged TOTAL INDONESIE failed to pay US$7.1 million to the two contractors SKJ and IKL for a construction project. It should be stressed that TOTAL INDONESIE paid SKJ in full, and no debt exists.
?Our case was the latest in a series of cases where profitable foreign companies have been targets of baseless bankruptcy petitions. Over the last few months I have been contacted by a number of foreign investors worried about legal certainty in Indonesia. I think today?s ruling sends a strong signal to foreign investors that things are moving in the right direction in Indonesia,? said Roland Festor.
In December 2000, TOTAL INDONESIE signed a US$19 million contract with Indonesian contractor, SKJ for the construction of a platform and a gas processing plant at the Tunu field in East Kalimantan. Due to changes during the construction period, TOTAL INDONESIE and SKJ agreed to increase the contract by US$5 million to US$24 million. The changes were approved by both parties, and the amount was paid by TOTAL INDONESIE.
Over a 10 month period in 2003, TOTAL INDONESIE turned down SKJ, and their sub-contractor IKL?s requests for additional payments, on top of the US$5 million already paid, ranging from US$1 million and up to US$18 million. None of these payments were justified under the contract. On January 14, 2005, SKJ and IKL filed a bankruptcy petition against TOTAL INDONESIE in the Central Jakarta Commercial Court for failure to pay.
TOTAL E&P INDONESIE (TOTAL INDONESIE) is a wholly owned subsidiary of French Total S.A., the world?s fourth largest international oil and gas company with 110,000 employees in more than 130 countries worldwide. TOTAL INDONESIE employs around 17.000 Indonesian workers in Indonesia.
TOTAL INDONESIE generated US$3 billion in revenues to Indonesia in 2004, and is one of the country?s largest financial contributors, responsible for 7 percent of the state?s annual budget. TOTAL INDONESIE entered Indonesia in 1968, and has over 37 years invested US$12 billion in Indonesia?s oil and gas production, and generated around US$30 billion in revenues to the Indonesian Government. In 2004, TOTAL INDONESIE invested US$1 billion in Indonesia.(end of release)