Bangkok (ANTARA News) - Indonesia`s efforts to seek US$2.4 billion in damages from a Thai oil drilling company for an oil spill in the Timor Sea that has severely harmed the livelihoods of fishing communities along East Nusa Tenggara province`s southeast coast seem to have little chance to succeed.

The claim which was handed to the Australian subsidiary of Thailand`s PTT Exploration and Production (PTT EP) last year was considered to have not been supported by the needed evidence which could help strengthen Indonesia`s bargaining power to get the claim paid, an official of PTT EP of Thailand, Leuchai Wongsirasawad, said at a meeting with 17 journalists from seven countries at his office in Hat Yai, Shongkla province, Southern Thailand, on Friday.

"We won`t fail to pay compensation if there are real facts in the form of evidence corroborating the truth of the claim. This does not mean we want to deny our responsibility on this. But the problem is that there are no facts showing the fishermen were affected by the oil spill," he said.

In fact, the oil spill was carried by sea currents to outside Indonesian seas, he said, adding however that until now the case was still under discussion between Indonesia and his company.

In the meantime, Anon Sirisaengtaksin, PTTEP`s chief executive, said it was unclear how Jakarta arrived at the US$2.4 billion figure but local officials had cited the severe impact on the marine habitat and the long-term damage to the fishing communities.

According to him, the long claim process was in its early stages, but the company would listen to arguments backed by scientific proof.

"If there is any evidence, we are willing to consider it," he said. But the company`s post-disaster monitoring program had indicated there was "minimal" long-term impact on the environment, Mr Sirisaengtaksin said.

Oil began flowing into the sea after a blowout at the Montara wellhead in August 2009 in a unique marine habitat. 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 commission was completed more than two months ago, but its findings were 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 Australia`s part.

The platform, owned by the Norwegian-Bermudan offshore drilling company Seadrill, was operated by PTTEP Australia, the Thai company`s subsidiary.

"They received the claim on August 26 and the figure was mentioned," said Mrs. 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 said the financial consequences had 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.

Responding to this oil spill tragedy, People`s Coalition for Justice Fisheries (Kiara) also deplored PTTEP Australia that rejected Indonesian claim over compensation for oil pollution in the Timor Sea oil spill from Montana.

"It is regrettable, for the second time PTTEP rejected compensation claims amounting to 2.4 billion US dollars in the proposed RI as pollution damages in the Timor Sea," Secretary-General KIARA, Riza Damanik, said.

According to him, it should not be allowed to drag on and the government of Indonesia had to immediately make improvements.

He explained, the Australian government documents since the early show vomit Montara refinery in Australia that also polluted the waters of Indonesia should be used.

This, he added, for RI, Australia to build understanding between them that the sea back East has been polluted by refineries owned by PTTEP Montana.

"It should be prepared to sue PTTEP anticipatory measures, including canceling the possibility of expansion of PTTEP in Indonesia," said Riza. (*)

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Reporter: Eliswan Azly
Editor: Jafar M Sidik
Copyright © ANTARA 2011