Indonesia is seeking $2.4bn in damages from a Thai drilling company alleging it is responsible for an oil spill in the Timor Sea that has severely hit the livelihoods of fishing communities along its southeast coast.
The claim was handed to the Australian subsidiary of Thailand's PTT Exploration and Production PCL, late last week, said Masnellyarti Hilman, the Indonesian government official handling the Montara spill, one of the worst in Australia's history.
It is unclear how Jakarta arrived at the $2.4bn figure but local officials have cited the severe impact on the marine habitat and the long-term damage to the fishing communities.
Anon Sirisaengtaksin, PTTEP's chief executive, said the "long" claims process was in its early stages, but the company would listen to arguments backed with scientific proof.
"If there is any evidence, then we are willing to consider it," he said. But the company's post-disaster monitoring programme indicated there was "minimal" long-term impact on the environment, Sirisaengtaksin said.
Oil began flowing into the sea after a blowout at the Montara wellhead in August 2009 in a unique marine habitat in the Coral Triangle. Within weeks, Indonesian fishermen saw drifting clumps of oil and dead fish. The leak, just off the northern coast of Australia, was capped after 74 days.
Estimates for the amount of oil released range from 400 to 2,000 barrels per day, although the extent of the environmental impact is contested.
An Australian government commissioned inquiry into the spill was completed more than two months ago, but its findings are yet to be made public. Martin Ferguson, Australia's resources minister, said in August that the evidence presented at the inquiry indicated there had been "serious shortcomings" on PTTEP Australasia's part.
The platform, owned by the Norwegian-Bermudan offshore drilling company Seadrill, was operated by PTTEP Australasia, the Thai company's subsidiary.
"They received the claim on August 26 and the figure was mentioned," said Hilman, who is also Indonesia's deputy minister for the environment. "Of course, the claim will be negotiated."
Details on how the Indonesian figure was reached were not made public, but government officials and environmental groups say the financial consequences have been significant in one of the country's poorest regions.
"The oil spill has had an environmental and socio-economic impact on coastal communities in 11 regions in East Nusa Tenggara province. Fishing activity and seaweed farming have been badly hit", said Ferdi Tanoni, director of the West Timor Care Foundation, a non-profit group.
Mustafa, a 40-year-old fisherman with four children, said he abandoned his boat after suffering losses. "The fishermen here are going through a rough time. I used to get 500-600 kilogram fish per trip, but after the oil spill, the catch fell to 100 kilogram."
Another local fisherman, 54-year-old Mitu, who also goes by a single name like many Indonesians, may pack up and move because he cannot support his family. "We have no other choice; fishing is the only skill we have".
http://www.ft.com/cms/s/0/096314c8-b4e9-11df-b0a6-00144feabdc0.html
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