JAKARTA - PT PGN LNG Indonesia (PLI), a subsdiary of PT Pertamina Gas Negara Tbk (PGAS), and PT Hoegh LNG Lampung (HLL) have agreed upon commercial negotiation regarding the utilisation of Floating Storage Regasification Unit (FSRU) Lampung. Said negotiation is a part of commercial solution for civil lawsuit regarding lease, operation, and maintenance of FSRU Lampung, arranged in Singapore International Arbitration Centre (SIAC).

Rachmat Utama, Corporate Secretary of PGAS, confirmed that both parties agreed on signing the settlement agreement (SA) in order to withdraw the arbitration of FSRU Lampung. “In efforts to utilize the Lampung FSRU there is an increasing need for LNG storage so that commercial solutions become a fairly good solution,” he said in the press release quoted Monday (5/2).

SA will be signed by PGAS, PLI, and HLL, which covers, among others, withdrawing Lampung FSRU Arbitration Case and following up with negotiations regarding the use of Lampung FSRU, submitting repeated claims regarding said FSRU, and the fact that the costs arising in connection with SA will be borne by each party.

As is known, PLI had submitted a statement of claim to SIAC regarding lease, operation, and maintenance (LOM) of FSRU Lampung against HLL. The claim requests for LOM agreement cancellation and compensation to PLI.

On the other hand, HLL submitted a counterclaim against PLI and a claim against PGAS to ask PGAS to fulfil all PLI’s obligations, including the compensation imposed on PLI. (LK/ZH)