PTTEP willing to pay Jakarta for 'proven' damage

PTTEP willing to pay Jakarta for 'proven' damage

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.

"PTTEP and PTTEP AA [its subsidiary] would like to inform that we would look
into all evidence, which led to the damage and would take responsibility for
it if it is proved that the damage occurred," the SET-listed upstream
petroleum company said in the statement.

PTTEP was responding to reports the Indonesian government was suing it and
its parent PTT Plc for $2 billion (69 billion baht) for the alleged damage
from the 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.

Located 250km off Australia's northwestern coast, the Montara project is
operated by the wholly owned Australasia (Ashmore Cartier) Pty Ltd (PTTEP
AA), with an initial production of 30,000 barrels per day of oil.

PTTEP said PTTEP AA, which was granted a concession to operate the Montara
project, quickly responded to the spill when it occurred in 2009 and worked
closely with environmental experts on possible damage that could affect
marine life and the environment.

However, the study showed no damage on the marine environment in the areas
adjacent to the Australian and Indonesian shores.

"By that time, there was no adverse effect on marine life and biodiversity
in the Australian and Indonesian seas. The company had also conducted a
trajectory modelling and found that most of the oil spill were largely in
the Australian waters only. However, there was no damage to both Australian
and Indonesian seashores," PTTEP said in the statement.

The company claimed it had worked for a long time with the Indonesian
government to determine and prove such damage existed. However, there was no
clear response from the Indonesian government, which had not even allowed
PTTEP AA to get into the area.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1244859/pttep-willing-to-pay-jakart
a-for-proven-damage

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com