Santa Fe Snyder Corp. has filed suit against Conoco Inc. alleging that Conoco breached an agreement to share the market for natural gas supplies to be transported to Singapore from Indonesia through planned subsea pipelines.
In a lawsuit filed in a US district court in Wilmington, Del., Houston-based Santa Fe Snyder said its Indonesian subsidiary had signed an agreement with Conoco's Indonesian unit a year ago defining the companies' separate, exclusive gas-supply arrangements with two competing Singapore firms (OGJ, Oct. 4, 1999, p. 38; Aug. 9, 1999, p. 23). Santa Fe Snyder, which said it has invested $150 million in its project, contends that Conoco discovered new gas reserves in the area and decided to go after Santa Fe's business despite the agreement.
The suit alleges that Conoco set upon a course of interference with Santa Fe Snyder's substantial monetary investments, legal rights, and commercial expectations that will cause it irreparable harm. Santa Fe Snyder asked a judge to award compensatory and punitive damages and to stop Conoco's efforts to take its customers.
Conoco has not commented on the suit. Santa Fe notes in the suit, however, that Conoco says it was not bound by the agreement.
Conoco Indonesia said in November that it had made another gas discovery in the South Natuna Sea and was talking with potential buyers in Asia (OGJ, Nov. 22, 1999, p. 40). Its plans involve investing about $500 million over 5 years to develop that gas field and lay a pipeline.
