Aug. 27 (Bloomberg) -- Exxon Mobil Corp., the world's biggest oil company, must face a lawsuit by villagers in Indonesia who say the company contributed to human-rights abuses by government security forces.

U.S. Judge Louis Oberdorfer in Washington denied a motion by Exxon and ExxonMobil Oil Indonesia to dismiss the suit, saying there is evidence Indonesian security forces under contract with the companies committed atrocities.

``EMOI's and Exxon Mobil Corp.'s ultimate liability is a question entrusted to a finder of fact,'' Oberdorfer said in his order today. ``Accordingly, the court will deny Exxon Mobil Corp.'s and EMOI's motions for summary judgment.''

The villagers sued in 2001, claiming Indonesia security forces working for Irving, Texas-based Exxon committed murder, torture and rape in Aceh province, where the company operates a government-owned oil and natural gas field and a pipeline.

Exxon spokeswoman Margaret Ross said the company will continue to defend against the claims.

``ExxonMobil condemns human rights violations in any form and has actively expressed these views to governments and others around the world,'' Ross said in an e-mailed statement. ``The claims are based on the alleged conduct of the Indonesia military against citizens of Aceh in Aceh during a civil conflict. There is no claim that an ExxonMobil affiliate participated in any human rights violations or any other wrongdoing.''

War on Terror

The U.S. State Department urged the judge to dismiss the suit in 2002, saying it would violate Indonesia's sovereignty and harm the war on terror. The U.S. Supreme Court in June refused to intervene, turning away an Exxon Mobil appeal that said the suit might interfere with U.S. foreign policy.

Chevron Corp., the second-biggest U.S. energy company, faces a trial next month in San Francisco on claims by Nigerian protesters of human-rights abuses by government security forces at an oil well operated by a subsidiary in that country.

Exxon rose 52 cents to $80.47 as of 4 p.m. in New York Stock Exchange composite trading. The shares have declined 14 percent this year.

The case is Doe v. Exxon Mobil, 01-1357, U.S. District Court, District of Columbia (Washington).

To contact the reporter on this story: Cary O'Reilly in Washington at caryoreilly@bloomberg.net.

Last Updated: August 27, 2008 16:46 EDT