Pattaya Daily News

23 July 2010 :: 14:07:53 pm 32722

Thai-Australian Firm Asked to Pay for Indonesian Oil Spill

Thai state-owned natural gas and oil company PTT has been asked to pay for environmental costs of repairing the damage done by an oil spill in the Timor Sea last year. The request comes after Indonesia’s president demanded financial compensation for the spill in a national address this week.
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Indonesia, the 23rd of July 2010 [Pattaya Daily News]: Indonesian President Susilo Bambang Yudhoyono on Thursday demanded that the Australian and Thai companies responsible for the Montara oil field spill pay financial compensation for the environmental damage incurred in the region.

“We will do our job to settle this problem by filing claims with the companies that have caused the oil spill. Our efforts will also include diplomatic communication with the governments of Australia and Thailand,” he said.

The slick, which occurred following a wellhead explosion on the Montara oil field rig in the Timor Sea, is alleged to have flowed into Indonesian and East Timorese territory causing significant environmental damage, according to Indonesian authorities. Approximately 38% of Indonesia’s sea territory in the Timor Sea has reportedly been polluted and the lives of over 200,000 fisherman and hundreds of coastal communities affected.

“The companies must pay compensation as they are responsible for the disaster. The people in NTT, especially those residing in Rote Island and its surroundings, should receive sufficient compensation for damages,” said Yudhoyono. At present, the Indonesian government are seeking some US$54 million in direct compensation with estimates expected to rise once a full investigation of the situation has been completed.

PTTEP Australasia, a subsidiary of the Thai state-owned PTT Group, claims to have solved the issue of the Montara oil field in November last year, requesting significant evidence that the spill had affected the areas stated by Indonesian authorities. At present, they deny that the slick had stretched to the extent of Indonesia’s claims.

Reporter : John Weston   Photo : Internet   Category : World News

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