*PTTEP rejects Indonesia’s $2.3b compensation demand* Friday, August 27, 2010 - 09:23AM GMT+7
Thai oil, gas firm PTTEP Australasia Pty Ltd has rejected the Indonesian government’s demand to pay compensation amounting to US$2.3 billion for an oil spill in the Timor Sea last year, Kontan daily reported Friday. Freddy Numberi, the chairman of the team for the handling of the oil spill, said in Jakarta on Thursday the Indonesian government would not change the compensation claim despite the Thai company’s rejection. Freddy, who is also the minister of transportation, said that it was a big mistake if the Thai company turned down the claim demand because it was made on the actual loss caused by the oil spill. According to Freddy, the West Atlas block in offshore Montara, Australia operated by PTTEP Australasia, leaked uncontrollably for more than 70 days, polluting waters off West Timor. The oil spill also destroyed fish stocks and wiped out seaweed farm along the coast. “I have an instructed the Indonesian negotiation team not to change the claim,” he said. Indonesia officially filed its request to the Thai company to pay the compensation over the oil spill in the Timor Sea during a negotiation held in Perth early this week. The claim also includes the damages on the ecosystem and the opportunity losses for the next few years that would be suffered by local fishermen because of the oil spill. (*)
