Bangkok Post, 23/07/2010 at 12:00 AM
Indonesia plans to seek damages from PTT Exploration & Production Plc (PTTEP) from an oil spill in the Timor Sea in August last year, President Susilo Bambang Yudhoyono said yesterday.
Indonesia plans to file a claim with the company while maintaining a good bilateral diplomatic relation, he said at a cabinet meeting yesterday.
''The communities of Indonesia hurt by the leak should be given proper assistance,'' President Yudhoyono said.
''What is clear is that the company must provide something. The damages are estimated at about 500 billion rupiah (1.8 billion baht) and may increase,'' Transport Minister Freddy Numberi told reporters.
PTTEP admitted that while it had been aware of the Indonesian government's plan to sue the company for a while, it was awaiting an official notification before deciding what to do next.
''We have not yet been officially informed by the Indonesian government. So far, there have been only news reports. As such, we won't comment on this. We have to see the official letter first,'' said PTTEP vice-president Chatchawal Eimsiri.
PTTEP has estimated that up to 400 barrels of oil leaked into the Timor Sea off Australia's northwest coast each day over more than 10 weeks last year. It stopped the spill on Nov 3 and extinguished the fire that had engulfed the West Atlas drilling rig.
Thirty-eight percent of Indonesia's sea territory in the Timor Sea was affected by the spill. Local fishermen's catches dropped and thousands of tonnes of shallow-water fish and whales died. The spill also destroyed seaweed farms cultivated by coastal communities in East Nusa Tenggara.
Australian Resources Minister Martin Ferguson plans to release the results of an investigation into the spill after reviewing the findings.
The incident and the BP spill in the Gulf of Mexico had damaged confidence in the oil and gas industry, Mr Ferguson said last month.
Shares of PTTEP closed yesterday on the Stock Exchange of Thailand at 141 baht, down three baht, in trade worth 1.17 billion baht.
The aftermath of the West Atlas rig explosion, seen in this file photo, and the massive oil spill that came as a result is being assessed by ministers from Indonesia and Australia. (AP Photo/PTTEP Australasia)
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