Total refutes asset preservation order

Total E& P Indonesie has asked the Commercial Court to reject its two former contractors’ demands for the issuance of an asset preservation order, following a bankruptcy petition filed by the contractors, The Jakarta Post newspaper reported in its Tuesday edition.

During Monday’s third hearing, Total’s defense lawyer Todung Mulya Lubis said the assets, which the contractors had demanded the seizure of, belonged to the state. Based on prevailing Law No. 1/2004 on the state treasury, state assets are not subject to confiscation by any parties.

“Referring to a letter issued by the Oil and Gas Implementing Body (BP Migas) on Feb. 8, all assets mentioned in the production sharing contract (between Total and the contractors) are not Total’s assets and are not subject to confiscation by any parties,” Todung told the hearing.

Both contractors – PT Istana Karang Laut and Sarana Kaltim Jaya – demanded the court issue the asset preservation order on the Tunu oil field project, the company’s operational building in East Kalimantan, on shore gas process in Senipah, off-shore facility in Tambora, payment from Liquefied Natural Gas (LNG) buyers from Japan, South Korea and Taiwan, as well as the condensate payment from Senpah.

Those assets belong to the state and are under BP Migas supervision.

Should the court issue the asset preservation order, it could hamper on going gas production and cause a shipment delay to buyers. (*)