PTTEP agrees to pay Indonesian seaweed farmers $129 million over 2009 oil spill
PTT Exploration and Production Plc (PTTEP)’s subsidiary PTTEP Australasia (PTTEPAA) has come to an out-of-court settlement with Indonesian seaweed farmers and will pay US$129 million in compensation.
The oil spill and subsequent slick took place when the Montara wellhead platform in the Timor Sea had a blowout on August 21, 2009. The leak off the northern coast of Western Australia could only be plugged on November 3 that year, making it one of Australia’s worst oil disasters.
The West Atlas rig is owned by the Norwegian-Bermudan Seadrill and operated by PTTEPAA.
Some 13,000 Indonesian seaweed farmers filed a class action lawsuit against PTTEPAA demanding $200 million in compensation and an Australian court ruled in favour of them on March 19 and October 25 last year. PTTEPAA appealed against the verdicts on December 13, 2021, prompting the court to urge both parties to settle their differences in out-of-court negotiations.
PTTEPAA said the group of farmers has agreed to drop its lawsuit and the settlement does not mean PTTEP Australasia is at fault. It added that details of the settlement cannot be released now because it is still being deliberated in court.
