Ten vendors file report against Petroselat to police

Ten vendors of upstream company Petroselat Ltd, an indirect subsidiary of IDX-listed energy company PT Sugih Energy Tbk, have filed a report to the National Police?s Criminal Investigation Department, accusing the company of corporate crime as it has failed to pay maturing claims, Bisnis Indonesia reported.

The paper said that the ten vendors, which individually filed the reports starting February, have total claims worth US$5 million, which were supposed to have been paid last year.

The paper quoted Danang Wibowo, President Director of PT Sigma Cakrawala Internasional, one of the vendors, as saying that Petroselat and Sugih have kept on delaying making the payment.

In a March meeting with vendors, Sugih top officials confirmed that Petroselat suffered financial difficulties causing it to be unable to make the payment to the vendors. Sugih said it would try to resolve the problem to allow payment to the vendors.

Also in Mach, Logistic firms PT Richland Logistics and PT Sentosasegara Mulia Shipping filed bankruptcy lawsuit against Petroselat with the Central Jakarta Commercial Court for failing to pay maturing debts, respectively worth US$402,027 and $448,442.

Meanwhile, Petroselat lawyer Hardiansyah told the paper the company is currently trying to formulate a debt settlement mechanism via process at the commercial court.

Petroselat is the operator of Selat Panjang oil and gas block, in Riau, as governed by Production Sharing Contract (PSC) dated September 6, 1991. Sugih indirectly owns 55 percent shares in Petroselat. (*)