Indonesia demands compensation over Australian oil leak

Lilian Budianto, The Jakarta Post 5 Feb 10;

Indonesia will file a demand to Australia asking for compensation after the latter’s oil rig leaked in Indonesian territory in Timor Sea, says the Indonesian Ambassador to Australia, Primo Alui Joelianto.

Primo said the demand would be submitted Feb. 22 when a team led by the Foreign Ministry visited Canberra.

“We are still finalizing details to ensure the amount accurately compensates for the destruction we have encountered,” Primo told The Jakarta Post at the sidelines of an ambassadors’ on meeting in Jakarta on Thursday.

The crude oil spill in the Timor Sea occurred August last year when an oil platform in the Australian Montara oil field exploded, spilling around 500,000 liters, or about 1,200 barrels of crude oil each day.

The accident has impacted on the environment and the income and health of fishermen in East Nusa Tenggara province.

“We have a strong legal standing given the extent of damage it has caused, and may continue to cause, to our country,” Primo said. “The compensation demand has a basis in international law and it will not affect our relations with Australia.”

The Australian government said last year it would respond to the incident according to international law, including launching an inquiry into the accident. The inquiry will conclude its report in April.

“To ensure that environmental impacts from the oil spill are understood and appropriately addressed in the long-term, a robust, scientific monitoring plan has been agreed between the Australian government and the company responsible for the wellhead platform,” it said.