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03:56

Indonesia, PTTEP still deadlocked after 8 months

Adianto P. Simamora, The Jakarta Post, Jakarta | Mon, 03/14/2011 12:31 PM

After almost eight months of protracted negotiations, the Indo-nesian government and Thai oil rig operator PTTEP have still not reached an agreement on the claim over the company’s oil spill in the Timor Sea.

Indonesia is seeking US$2.4 billion but the company has only agreed to provide $5 million in
the form of the corporate social responsibility (CSR) programs to assist affected fishermen in the Timor Sea.

Transportation Minister Freddy Numberi, who is heading the emergency response team on the oil spill, said PTTEP initially proposed only US$3 million.

Officials from Indonesia and PTTEP met in Singapore last week but failed to reach an agreement on the claims despite strong warnings from the Indonesian government.

Prior to the meeting, Freddy told The Jakarta Post he would take stern measures, including bringing the case to international courts or closing down PTTEP subsidiaries in Indonesia if PTTEP failed to meet the February deadline to agree on compensation.

PTTEP owns more than half of the shares in several subsidiaries operating in Indonesia.

The first negotiations for financial damage took place in July 2010 after the oil platform in the Montara field off Australia’s northern coast exploded in August 2009.

Indonesia claims 2,000 barrels of oil a day leaked before the spill was halted in November 2009.

PTTEP said there was no strong evidence for the claims by Indonesia.

In a previous meeting, PTTEP officials were scheduled to visit East Timor in February to verify data proposed by Indonesia for the claim, however, no field checks were conducted.

Freddy said the two parties were working to draft a memorandum of understanding to give details on payments on Indonesia’s claim.

“The MoU would include clauses related to the financial claim proposed by Indonesia. It will outline the payment period of claims that were expected to be made by June,” he was quoted as saying by Antara news agency.

The MoU is scheduled to be signed in April.

Freddy said if PTTEP failed to fulfill the agreement, Indonesia was ready to take legal action.

PTTEP acknowledges oil spill in Timor Sea: Indonesian minister

Date: 2010/12/16Author: Xiong TongDerivation: Xinhua net

http://www.asean-cn.org/Item/2828.aspx

JAKARTA, Dec. 15 (Xinhua) -- Thailand-based oil and gas producer PTTEP Australasia has finally acknowledged responsibility for an oil spill in the Timor Sea occurred last year, local media reported Wednesday.

The Indonesian government has demanded 23 trillion rupiah (some 2.56 billion U.S. dollar) in compensation from the firm to repair the damages, Indonesian Transport Minister Freddy Numberi has said.

"We held a meeting with them and they have confessed. Actually, we need the confession," Numberi was quoted by the Jakarta Post as saying.

The company would hold another meeting with the Indonesian government to discuss data on sea contamination, Freddy said.

PTTEP Australasia's oil platform in the Montara field off Australia's northern coast exploded and spilled more than 500,000 liters of crude oil per day into the Timor Sea in August 2009.

Thirty-eight percent of Indonesia's marine territory in the Timor Sea were reportedly affected by the spill. Local fishermen's catches reportedly dropped and thousands of tons of shallow water fish died, while marine mammals, including whales, also fell victim.