SSA Advocates Assisting an Oil and Gas Contractor on Gas Engine Generator Dispute

Suhardi Somomoeljono & Associates (“the Firm”) has successfully assisted leading oil and gas construction company (“Client”) to settle its potential EPC dispute regarding the lack of conformity on gas engine generator product (“GEG”) supplied by reputable machinery company as Client’s vendor for complex oil and gas construction project in Indonesia (“Vendor”).

The dispute arose when the lube oil consumption of GEG was abnormal. Furthermore, the radiator’s v-belt was broken off after 300 running hours. The conditions above, is different with (i) GEG’s standard manufacture which explain the normal lube oil consumption and (ii) manual operation & maintenance which states that the replacement for v-belt should be at its 750 running hours not 300 (“Defect”).

The Defect cause a major operational and financial issue for the Client, the Firm provided legal advice to in-house legal to find a better alternative for the settlement without putting aside Client’s financial and operational.

The dispute led by Partner Dianyndra Kusuma Hardy and supported by senior associate Rangga Adityawarman was involved to advice the in-house legal the scheme and strategy to settle the dispute.

As a leading law firm in dispute resolution, the Firm has been providing a solid advisory and continuous legal assistance to various corporations in Indonesia. The Firm also has a great understanding on technical issue on construction project. The Firm has represented and assisted many corporations or individuals to settle their construction dispute effectively. For further details on our dispute resolution services, do not hesitate to contact the partners stated under the key contact.

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