Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Indonesia plans to sue Thailand's PTTEP over 2009 oil spill

Published 20/03/2017, 05:17 pm
© Reuters.  Indonesia plans to sue Thailand's PTTEP over 2009 oil spill
PTT
-
PTTEP
-

By Agustinus Beo Da Costa

JAKARTA, March 20 (Reuters) - Indonesia is preparing to sue a unit of Thailand's PTT Exploration and Production (PTTEP) PTTEP.BK over alleged environmental damage from the Montara oil spill in 2009, the country's Coordinating Maritime Affairs Ministry said.

The move follows earlier attempts at negotiation that stalled in 2012, and a separate class action suit filed by a group of about 15,000 Indonesian seaweed farmers seeking more than A$200 million ($154 million) from PTTEP Australasia to cover damages from the spill. total of about 30,000 barrels of oil were estimated to have spewed into the Timor Sea over 74 days after an explosion at PTTEP's Montara drilling rig off Australia's northwest coast in 2009.

"This relates to Indonesian sovereignty and poor communities whose lives depend on the maritime sector, so we must fight this in a more planned way," Basilio Dias Araujo, Indonesia's assistant deputy minister for safety and security, said in a statement published on the ministry's website.

The Indonesian government and state prosecutors are in the process of compiling evidence and have invited around 50 expert witnesses to support the case, the statement said.

"The Indonesian government has asked PTTEP for compensation through non-litigation channels, but the negotiation process became deadlocked in 2012, so no agreements were reached," Araujo added.

The slick from Montara reached Indonesian waters, and was Australia's worst offshore drilling accident. An Australian government inquiry blamed the spill on systemic shortcomings at the Thai oil giant.

A Bangkok-based spokeswoman for PTTEP, the exploration flagship of top Thai energy company PTT Pcl PTT.BK , said she could not immediately comment on the matter.

"No oil from the Montara incident reached the Australian and Indonesian mainlands," PTTEP Australasia said on its website, citing independent scientific studies, and "there has been little or no detectable impact from the spill on any marine eco-system or species in the Timor Sea."

"There were no lasting negative impacts on the region's biodiversity" from the spill, it said.

PTTEP was fined A$510,000 ($394,000) by a Darwin court in 2011 after pleading guilty to four charges relating to workplace health and safety and failure to maintain good oilfield practice. That outcome "concluded all government legal matters in relation to the Montara incident," the company said.

The Indonesian seaweed farmers from Nusa Tenggara Timur province began their action last August and the next hearing is scheduled to take place in May, according to their legal team. [ ] ($1 = 1.2945 Australian dollars) (Writing by Fergus Jensen; Editing by Richard Pullin)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.