Total E&P case will threaten export of 340 LNG cargoes

The sending of Indonesia?s 340 liquefied natural gas (LNG) cargoes to Japan, South Korea and Taiwan will be in trouble if the Jakarta Commercial Court declares Total E &P Indonesie as bunkrupt tomorrow (Tuesday), the Investor Daily Indonesia reported in its Monday edition.

Because, the court?s decision will force the gas producer Total E&P to stop its operations.

?As a result, Indonesia?s credibility as world?s largest LNG exporter will be affected,? Total E&P?s corporate communications manager Ananda Idris said on Friday during his visit to the Investor?s office in Jakarta.

But Idris said it will not happen because Total is ready to appeal to Supreme Court for a review to annul Central Jakarta? decision.

?We are confident that the Supreme Court will annul the decision,? Idris said.

Total signed a contract with PT Sangaar Kaltim Jaya (SKJ) in 2001 to build platforms and gas processing plants in Tunu field in East Kalimantan. SKJ later subcontracted the work to Istana Karang Laut.

These two companies filed a bankruptacy petition against Total in the Jakarta Commercial Court in January, claiming $7.1 million in unpaid bills.

Total, a French company that supplies gas to Indonesia?s biggest liquefied natural gas plants, operates Mahakam oil and gas block off East Kalimantan, which produces 2.39 billion cubic feet of LNG a day.

Total has has also filed a law suit against PT Sanggar Kaltim Jaya (SKJ) at Indonesian arbitration tribunal (BANI) and sought US$12 million in damages. (*)