8 NTT Districts Affected by Montara Oil Spill, Losses Estimated at Rp1 Trln

Law

Friday, 06 August 2010 17:54

East Nusa Tenggara Governor Frans Lebu Raya said eight districts in the province have been affected by the Montara oil spill in Timor Sea, with estimated compensation for damage could rise as a high as Rp1 trillion.

“I think it (compensation) should be over Rp1 trillion. We don’t only calculate the present losses, but also the impact of the oil spill and the recovery process, which is likely to take time,” Frans Lebu Raya was quoted by detik.com as saying on Friday.

Frans made the statement on the sideline of working meeting at Bogor Palace.

He said the provincial government is still collecting data from all affected areas. There are a lot of districts that are affected, with extensive damage. He also said the provincial government is also working with the Indonesian military (TNI) and the Police to observe the impact of the oil spill.

The Montara oil spill was triggered by oil and gas leak and subsequent slick at West Atlas rig, owned by the Norwegian Berduan Seadrill and operated by PTTEP Australasia. The slick was later released following a blowout from the Montara wellhead platform on August 21, 2009. The leakage was managed to be closed on November 3.

The field is developed by PTTEP Australasia, a subsidiary of PTT, a Thai oil and gas company. PTTEP Australia has just listed its US$500 million 4.25% Senior Notes due 2015 on the SINGAPORE Stock Exchange (SGX). The company hired West Atlas for the drilling in Montara.

So far, 40 million liters of crude oil mixed with gas and condensate has affected the surrounding areas, harming fisheries in Rote and Timor islands. The leakage last for 10 weeks at the depth of 2.6 kilometers below sea floor. However fishermen and seaweed farmers in East Nusa Tenggara still feel the impact of the oil-spill until now.

Environmentalists have described the oil-spill as one of biggest environmental disaster in the region.

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