Indonesia seeks $2.2bn oil spill compensation

Officials from Jakarta have held negotiations in Perth this week with the Australian subsidiary of Thai-owned explorer PTTEP, the company behind last year's Montara oil spill off the Kimberley. Indonesia is seeking a multi-billion-dollar settlement. Thousands of barrels of oil and condensate poured into the Timor Sea and spread into Indonesian waters. Indonesia is thought to be asking for compensation of between $US784 million and $US2.2 billion, according to reports.

Environmental group WWF said the 74-day spill, which started off the Australian coast, created a slick of 50,000sq km and overlapped into Indonesian waters killing sea life and damaging the Indonesian fishing industry. People in West Timor say catches are down 80 per cent and children are under-fed because of lost protein and income.

Gusti Muhammad Hatta

Indonesian Environment Minister

“The compensation being sought would be based on environmental, social and economic losses from the oil spill.”

Jose Martins

Director PTTEP

“The company has not been shown any verifiable evidence of damage. If claims are received, the evidence will be assessed and the claims treated on their merits."

Environmental group WWF claims the 74-day spill, which started off the Australian coast, created a slick of 50,000sq km that overlapped into Indonesian waters and killed sea life, damaging the Indonesian fishing industry. Activists in West Timor say catches are down 80 per cent and children under-fed because of lost protein and income.