Siwani Trimitra hopes to end dispute with Pertamina next year

Publicly listed PT Siwani Trimitra Tbk expected to settle its dispute with state-owned oil and gas firm PT Pertamina over a cancelled pipeline and satellite fuel depot project in Jakarta by mid next year.

Siwani said in the statement to the Jakarta Stock Exchange on Thursday that currently an oil and gas investor, which is interested to take over the project, was conducting due diligence on the project. The due diligence is expected to be concluded by mid 2005.

Siwani said it had appointed Areca Finance Limited to determine the amount of compensation it would receieve from the transfer of the project.

In 2000, Siwani together with PT Pandanwangi Sekartadji took over the Rp 180 billion contract to construct and develop fuel transmission pipeline system and a number of fuel oil depots in Jakarta from Singapore-based L&M Group Investments Ltd. The Singapore firm got the project from Pertamina.

In 2003, for reasosn remaining unclear to the press, Pertamina and Pandanwangi agreed to terminate the project, with Pertamina obligated to pay US$7.5 million in compensation.

However, Siwani said Thursday that Pertamina had yet to pay the compensation. (robert)