French - Total E&P Chooses Indonesian Law for an Oil Rig Contract

Rimba Supriyatna / Mahinda Arkyasa

Total E&P Indonesie (Total E&P)—subsidiary of Total S.A., a French multinational oil and gas company—has agreed to choose Indonesian law as a choice of law in conducting business activities in Indonesia.

Antonious Sibarani, Head of Legal Operations at Total E&P in Balikpapan, stated to hukumonline on Monday (18/2) that Total E&P will comply with Indonesian laws when executing oil and gas contract of cooperation.

He also added that the company has agreed to appoint the Indonesian National Board of Arbitration (Badan Arbitrase Nasional Indonesia - BANI) to settle any disputes that may arise.

Antonius explained that by choosing to comply with Indonesian laws and regulations, Total E&P has acted in accordance with the policy stated by the Special Work Unit for Oil and Gas Upstream Activities (SKK Migas), which is to prioritize Indonesian law in drafting of oil and gas cooperation contracts.

During the interview held, after the signing of an oil rig contract with PT Apexindo Pratama Duta on Monday (18/2), Elizabeth Proust, Chief Executive Officer of Total E&P, confirmed that the company puts its’ trust in Indonesian Government to determine the legal basis of a contract and dispute resolution method.

Meanwhile, Gde Pradnyana, Secretary of SKK Migas, stated that although the choice of law in the contract is based on the parties’ discretion, he urged every oil and gas contractor operating within Indonesian territory to choose Indonesian law and the available dispute resolution institution because this will make resolving disputes much easier. 

(JT/DS)

Rimba Supriyatna / Mahinda Arkyasa

Total E&P Indonesie (Total E&P)—subsidiary of Total S.A., a French multinational oil and gas company—has agreed to choose Indonesian law as a choice of law in conducting business activities in Indonesia.

Antonious Sibarani, Head of Legal Operations at Total E&P in Balikpapan, stated to hukumonline on Monday (18/2) that Total E&P will comply with Indonesian laws when executing oil and gas contract of cooperation.

He also added that the company has agreed to appoint the Indonesian National Board of Arbitration (Badan Arbitrase Nasional Indonesia - BANI) to settle any disputes that may arise.

Antonius explained that by choosing to comply with Indonesian laws and regulations, Total E&P has acted in accordance with the policy stated by the Special Work Unit for Oil and Gas Upstream Activities (SKK Migas), which is to prioritize Indonesian law in drafting of oil and gas cooperation contracts.

During the interview held, after the signing of an oil rig contract with PT Apexindo Pratama Duta on Monday (18/2), Elizabeth Proust, Chief Executive Officer of Total E&P, confirmed that the company puts its’ trust in Indonesian Government to determine the legal basis of a contract and dispute resolution method.

Meanwhile, Gde Pradnyana, Secretary of SKK Migas, stated that although the choice of law in the contract is based on the parties’ discretion, he urged every oil and gas contractor operating within Indonesian territory to choose Indonesian law and the available dispute resolution institution because this will make resolving disputes much easier. 

(JT/DS)

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