Indonesia sues Thailand's PTT, PTTEP for $2 billion over oil spill

[Jonathan Fairfield]

Indonesia sues Thailand's PTT, PTTEP for $2 billion over oil spill

 

JAKARTA/BANGKOK (Reuters) - The Indonesian government is suing Thailand's state-owned PTT and PTT Exploration and Production for around $2 billion for alleged damage to the environment from an oil spill in the Timor Sea eight years ago.

 

The Montara wellhead operated by subsidiary PTTEP Australasia caught fire in 2009, leaking hundreds of thousands of litres of oil off the northern coast of Western Australia, according to media reports at the time.

 

The incident was considered one of Australia's worst oil disasters, and PTTEP was fined A$510,000 ($394,000) by a Darwin court after pleading guilty in 2011 to charges related to workplace health and safety and failure to maintain good oilfield practice.

 

Indonesia alleges, however, that the oil spill also fouled seawater and coastal areas in the nation's East Nusa Tenggara province, and filed a lawsuit on Wednesday in a Jakarta court against PTT, PTTEP and PTTEP Australasia, seeking 27.5 trillion rupiah ($2.1 billion) for damages and restoration costs.

 

PTTEP Australasia "has not shown good intention in resolving the pollution problem of the Montara oil spill," Indonesia's maritime coordinating ministry said in a statement on Friday.

 

Besides polluting seawater, the incident also damaged mangrove forests, coral reefs and seagrass fields in East Nusa Tenggara province, the ministry said.

 

PTTEP said in an emailed statement that it was aware of reports about Indonesia's lawsuit, but that it "has not been served with proceedings and has not received any notification of the substance or extent of the claim."

 

PTTEP has always acted cooperatively and "in good faith" in its past discussions with the Indonesian government, and will continue to do so, it said.

 

PTTEP Australasia maintains its position that "no oil from Montara reached the shores of Indonesia and that no long-term damage was done to the environment in the Timor Sea," the company said.

 

In a separate class action suit, around 15,000 Indonesian seaweed farmers are seeking more than A$200 million ($152 million) from PTTEP Australasia to cover damages from the spill.

 

The next hearing in the class action suit is due to take place at the end of this month, according to their legal team. 

 

(Reporting by Agustinus Beo Da Costa in JAKARTA, and Panarat Thepgumpanat and Patpicha Tanakasempipat in BANGKOK; Writing by Eveline Danubrata; Editing by Tom Hogue)

 

 

-- © Copyright Reuters 2017-05-06

[toenail]

Can Thailand sue Indonesia over their annual "slash & burn" air pollution that clouds over Malaysia, Singapore, & south Thailand every September-October? 

[carstenp]

1 minute ago, toenail said:

Can Thailand sue Indonesia over their annual "slash & burn" air pollution that clouds over Malaysia, Singapore, & south Thailand every September-October? 

short answer No

 

Edited May 6, 2017 by carstenp

[Farang hunter]

well in your dreams 

Edited May 6, 2017 by Farang hunter

[bdenner]

2 hours ago, toenail said:

Can Thailand sue Indonesia over their annual "slash & burn" air pollution that clouds over Malaysia, Singapore, & south Thailand every September-October? 

Bloody hippocrates! You expressed my thoughts exactly,

[Srikcir]

Another reason why there there shouldn't be state-owned enterprises.

[BigBadGeordie]

Looking forward to my grandson telling his kids to check the news when the outcome of this case is due.

 

It is on the Courts schedule for the week after the "RedBull" debacle is completed.

[elgordo38]

10 hours ago, Jonathan Fairfield said:

The incident was considered one of Australia's worst oil disasters, and PTTEP was fined A$510,000 ($394,000) by a Darwin court after pleading guilty in 2011 to charges related to workplace health and safety and failure to maintain good oilfield practice.

 

Whew talk about an accelerated problem for $394,000 to 2 billion whoosh. Inflation must be higher than we figured. 

[elgordo38]

1 hour ago, Srikcir said:

Another reason why there there shouldn't be state-owned enterprises.

Without state protection they would be rather naked and exposed. $2 billion baht wow did the fat lady ever sing on this one. 

[elgordo38]

6 hours ago, bdenner said:

Can Thailand sue Indonesia over their annual "slash & burn" air pollution that clouds over Malaysia, Singapore, & south Thailand every September-October? 

Could be a deal where they can trade carbon credits???

[elgordo38]

10 hours ago, Jonathan Fairfield said:

Indonesia alleges, however, that the oil spill also fouled seawater and coastal areas in the nation's East Nusa Tenggara province, and filed a lawsuit on Wednesday in a Jakarta court against PTT, PTTEP and PTTEP Australasia, seeking 27.5 trillion rupiah ($2.1 billion) for damages and restoration costs.

 

From the sounds of this forget $2 billion go for a financial moon shot. 

[Rhys]

...So this is where the sub patrol will go now... up bubble 10 degrees

[wakeupplease]

No chance of any compensation there, unless a certain plane flies in

[pentap]

Good luck to the Indonesians.

However. It may turn-out to be a long and difficult battle for them? Should the report be true?


Sent from my iPad using Thaivisa Connect

[chuang]

5 hours ago, elgordo38 said:

Without state protection they would be rather naked and exposed. $2 billion baht wow did the fat lady ever sing on this one. 

2 billion USD not baht 

[steven100]

good luck with that one .....  next ..

[optad]

1 minute ago, steven100 said:

good luck with that one .....  next ..

Gotta call 'em out though

[carstenp]

6 hours ago, wakeupplease said:

No chance of any compensation there, unless a certain plane flies in

Im not so sure

 

Quote

From another newspaper: PTT Exploration and Production Plc (PTTEP) will take responsibility for any proven damage to Indonesia's environment and marine life caused by an oil spill in 2009.

 

 

[elgordo38]

4 hours ago, chuang said:

2 billion USD not baht 

My error caught up in the moment. Good to have you on board to correct me. 

[sawadee1947]

well, teach them a lesson. Hopefully they will understand the warning to care for environment. There is an Internatioanl Court to decide. Thais got already good experience

[sawadee1947]

well, sue them. Maybe they will care for environment next. Teach them a lesson. There is also International Court. Thais know where it is.....

[webfact]

Deadlock as PTT hit by big claim over oil spill

The NATION

 

Thai firm alleges Indonesia refuses to settle after years of dispute and Bt70 billion suit filed in Court

 

BANGKOK: -- THE INDONESIAN government and Thailand’s PTT Exploration and Production plc (PTTEP) are locked in a multi-billion-baht legal dispute over alleged environmental and other damages resulting from the massive 2009 Montara oil spill affecting Indonesia’s territorial waters.

 

The company has suggested that the Jakarta government did not cooperate in settling the dispute out of court.

 

Indonesia filed a lawsuit in a Jakarta court recently against PTTEP and its subsidiary, PTTEP Australasia (Ashmore Cartier), or PTTEP AA, seeking US$2 billion (Bt70 billion) in compensation.

 

PTTEP AA operated the Montara oil field north of Australia and adjacent to Indonesian waters.

 

Its parent firm PTTEP said yesterday that PTTEP AA had taken immediate action to tackle the consequences of the oil spill in 2009. 

 

In coordination with the Australian government, independent environmental specialists were commissioned to evaluate the impact of the massive spill. However, study results allegedly showed that there were no environmental or ecological impacts in Australian or Indonesian waters.

 

The company said satellite images, trajectory modelling and other scientific methods were used in the evaluation process in which most of the oil spill did not reach Australian or Indonesian shores.

 

However, in 2010, the Indonesian government began seeking compensation for alleged environmental and fishery damages from PTTEP and PTTEP AA resulting from the spill. 

 

As a result, the Thai firm and its subsidiary informed Indonesia that PTTEP was ready to negotiate in good faith over any proven damages. The company said it had submitted study results from independent experts to Indonesia.

 

There were rounds of negotiations and an effort to sign a memorandum of understanding with the Indonesian government to settle the issue amicably, the company said. 

 

However, Indonesian authorities reportedly did not provide detailed documents to the Thai side to prove ecological and fishery damages.

 

In addition, PTTEP AA officials were allegedly barred from entering areas relevant to the dispute.

 

According to PTTEP, it is ready to take responsibility and pay for damages if they can be proven scientifically.

 

Jakarta sceptical

 

However, Indonesia’s deputy minister for maritime affairs, Arif Havas Oegroseno, said the Jakarta government did not believe the Thai firm was serious in handling the issue, resulting in its decision to file the Bt70-billion lawsuit.

 

According to the Indonesians, an independent commission that included former Indonesian and Thai foreign ministers could not resolve the issue as PTTEP failed to show up to sign an agreement on the oil spill issue in 2012. 

 

That failure to show, they said, constituted a “clear signal” that PTTEP was not serious in resolving the issue.

 

In addition, about 13,000 Indonesian seaweed farmers last August filed a $200-million Australian dollar (Bt5 billion) class action lawsuit against PTTEP AA in Sydney claiming the oil spill had devastated their livelihoods.

 

Source: http://www.nationmultimedia.com/news/national/30314519

 

-- © Copyright The Nation 2017-05-08

[Chang_paarp]

1 hour ago, webfact said:

 

Its parent firm PTTEP said yesterday that PTTEP AA had taken immediate action to tackle the consequences of the oil spill in 2009. 

 

Yes, in typical Thai fashion they denied any involvement.