Indonesia seeks compensation over Timor Sea oil spill

The Indonesian government says the rig's operators, PTTEP Australasia must compensate locals. [ABC]
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The Indonesian government says the rig's operators, PTTEP Australasia must compensate locals. [ABC]

VIDEO from Australia Network News

Oil Compensation

Created: 22/07/2010

Kerri Ritchie, Jakarta

Last Updated: Thu, 22 Jul 2010 20:16:00 +1000

The Indonesian Government says it's seeking compensation from a company which was responsible for an oil spill last year in the Timor Sea.

The Montara well leaked uncontrollably for more than 70 days before it exploded in a fireball, incinerating the rig.

After the rig exploded in August last year, oil spread over 90,000 square kilometres.

Waters off West Timor were polluted, harming seaweed farms along the coast.

The Indonesian government says the rig's operators, PTTEP Australasia, which is part owned by Australia, must compensate locals.

The President Susilo Bambang Yudhoyono told a Cabinet meeting he's "obligated to solve this problem, and will be putting in a claim to the company responsible for the oil spill".

The President didn't give a figure of how much compensation he's seeking but some in Indonesia are estimating $US30 million.

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