FRIDAY, April 19, 2024
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Indonesia launches Bt70-bn lawsuit against PTTEP over oil spill off Australia

Indonesia launches Bt70-bn lawsuit against PTTEP over oil spill off Australia

INDONESIA has sued PTT Exploration and Production Plc (PTTEP) and its Australian subsidiary over an oil spill off Australia in 2009 that it claims caused environmental damage in the archipelago’s waters.

The Indonesian government is seeking US$2 billion (about Bt70 billion) in damages.
PTTEP has learned about the lawsuit and has yet to obtain relevant documents regarding this legal action, a company source said yesterday.
The source said the company’s subsidiary in question, PTTEP Australasia, has not received clear evidence from the Indonesian authorities about the claimed damage to the environment in the spill area adjacent to Indonesia’s waters. PTTEP is ready to take responsibility if the claimed damage can be scientifically proven, the source said.
In Jakarta, Arif Havas Oegroseno, Indonesia’s deputy minister for maritime affairs, said on Friday that a civil lawsuit was filed on Wednesday in a Jakarta court against PTTEP Australasia, which was operating the rig in the Timor Sea where the accident happened, and its parent company, Thailand’s state-owned PTTEP.
The spill in the Montara field, north of Australia, took place in August 2009. Thousands of barrels of oil leaked for close to 10 weeks following a blowout at the rig, in Australia’s worst offshore drilling accident.
Indonesia is seeking about 27.4 trillion rupiah (around $2 billion) in damages, including for damage caused to the environment, after the oil spread into its waters, Oegroseno said.
The Indonesian government is also seeking to freeze the firm’s assets in Indonesia and overseas, he said. “This is an effort to seek justice for the PTTEP oil spill,” Oegroseno said.
Oegroseno said the oil spill killed and damaged a huge area of coral reefs, seagrass meadows and mangroves in Indonesia.
Over the years, Indonesia had tried to negotiate with the company to come to a resolution but was not satisfied with their response, Oegroseno said. “We feel that they are not serious in handling this issue,” he said.
An independent commission, which included the former Indonesian and Thailand foreign ministers, did not manage to resolve the issue when PTTEP failed to show up for the signing of an agreement over the oil spill in late 2012, the deputy minister said.
Oegroseno said the company’s failure to show up was a “clear signal” that the company was not taking the case seriously. 
PTTEP has previously said comprehensive studies clearly showed “no lasting impact on the highly sensitive and biodiverse ecosystems in the areas closest to Indonesian waters”.
Last August, about 13,000 Indonesian seaweed farmers launched a $200 million Australian dollars (Bt5.2 billion) class action against PTTEP Australasia in Sydney, claiming the accident devastated their livelihoods.
 

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