Total Indonesie urged to pay US$7.1 million claims

The country's oil and gas upstream authority BP Migas has asked oil and gas firm Total E&P Indonesie to quickly pay contractors claims worth around US$7.1 million, the Kompas daily reported on Thursday.

BP Migas, however, did not set a deadline.

The statement came from Bangun Usman Harahap, a deputy at BP Migas, after meeting with representatives of the contractors on Wednesday. Bangun said that BP Migas was giving a chance to Total Indonesie to resolve internally the problem related to the claims

"Total Indonesie has actually agreed with BP Migas to pay the claims, but it has yet to realize the payment pending the completion of an internal audit by the company's headquarters. So, the delay was not because Total disputed the amount of the claims," Bangun said.

He said since the claims include salaries for workers employed by the contractors, BP Migas expected Total could quickly pay the claims, which had been stalled for over a year now, according to one labor activist.

Rodja, a labor activist from the Federation of Labor Union, said that the delay in the payment of the claims had caused difficulties to workers, and a collapse of a number sub-contractors. (*)