Camelia Pasandaran & Fidelis E. Satriastanti Jakarta Globe 25 Nov 10;
Jakarta. The government is sticking to its sizable claim for damages from last year’s massive Montara oil spill in the Timor Sea, even though the company at fault now says the slick barely affected Indonesian waters.
The spill was the result of a blowout at the Montara wellhead platform off the northwest coast of Australia in August 2009 and Indonesia has claimed Rp 23 trillion ($2.58 billion) in damages because the leak caused a large slick that spread into Indonesian territorial waters.
The well was operated by PTTEP Australasia, a subsidiary of Thailand’s PTT Exploration & Production. On Nov. 19, the company released initial findings of an investigation into the incident.
The report said “no oil reached the Australian mainland or Indonesian coast.”
It also said “98.6 percent of hydrocarbon occurrences on the surface” happened in Australian territorial waters, while Indonesia says it affected 78,000 square kilometers of its waters and disrupted the livelihoods of residents of East Nusa Tenggara.
On Wednesday, Masnellyarti Hilman, head of the Indonesian government team negotiating with the company, said she had received the report but had not yet had the chance to study it.
“If they claim that no oil [reached Indonesian shores], then we will protest,” she said, adding that she expected to issue a formal response to the report today.
Transportation Minister Freddy Numberi, who heads the Indonesian team handling the fallout from the spill, said earlier that the government had sufficient evidence that large swaths of the slick had entered Indonesian waters.
“We have proof of this in the form of satellite imagery,” he said. “We cleaned up the spill together with the Australian authorities, so the Australian government is our witness to this.”
Freddy accused PTTEP Australasia of stalling for time to delay paying damages. “We’ll bring the case before international arbitration if the company refuses to pay the money,” he said.
“In the end, we may have to resort to legal steps. But we’re not worried because we have the supporting evidence. The Australian government has also come forward with a strong statement that the company might be closed down. If needed, we will also close down its operations here.”
The minister added that his team would meet with representatives from PTTEP Australasia on Dec. 16 to discuss the time frame and method of payment of the compensation.
The company’s study was conducted under the long-term environmental monitoring system developed by the company itself and the Australian government.
It covered three elements: shoreline ecological assessment of the coast from Darwin to Broome; an analysis of the movement and distribution of oil from the spill; and the fate and effects of the use of dispersants to mitigate the effects of the spill.
Australia releases Montara inquiry commission's final report
Antara 25 Nov 10;
Jakarta (ANTARA News) - The Australian Government has released the Report of the Montara Commission of Inquiry and a draft Government response, following a period of detailed consideration.
The Inquiry was set up to investigate the likely causes of the uncontrolled release of oil and gas into the Timor Sea from the Montara Wellhead Platform on 21 August 2009 and make recommendations to the Government on how to prevent future incidents, according to a press statement of the Australian embassy here Thursday.
The Report contains 100 findings and 105 recommendations, which have implications for governments, regulators, and the offshore petroleum industry.
The Government proposes accepting 92, noting 10, and not accepting three of the Report`s recommendations. Outlining the Government`s draft response, Minister for Resources and Energy noted that it provides a comprehensive plan to tackle head on the tough policy challenges posed by the Montara incident.
"The fact is that we were lucky with Montara - no lives were lost, there were no serious injuries and the quick, coordinated response from governments, regulators and industry meant that the impact on the marine environment was minimal," Minister Ferguson said.
"Montara was the first major loss of well control in 25 years of safe offshore petroleum operations. Our challenge - collectively - is to minimise the risks of any future incidents. That is why I set up the Montara Commission of Inquiry. We can`t just turn our backs on this industry it is too important to Australia`s economic and energy security," he said.
" What we can do - working together - is make Australia`s offshore safety regime the best and safest in the world.
The report recognises that while there is room for some improvements, our regulatory regime is good - it is effective," the minister added.
"At the heart of this matter is the failure of the operator and the failure of the regulator to adhere to this regime."
"Montara was preventable. If either - or preferably both - PTTEP AA or the Northern Territory Designated Authority had done their jobs properly and complied with requirements, the Montara Blowout would never have happened. I have already taken action on the most pressing issues arising from the Montara Commission of Inquiry," he stated.
The Government would move toward a single national offshore regulator - consistent with the Report`s recommendations, according to the minister.
In line with the Commissioner`s recommendations, the Government will also move to legislate the polluter pays principle and the requirements for environmental monitoring, further strengthening environmental safeguards.(*)
Timor oil spill inquiry cites company shortcomings and negligent regulator
WWF 25 Nov 10;
Sydney, Australia: A long-awaited report into the August 2009 oilspill which widely affected marine and bird life in the Timor Sea has condemned “widespread and systematic” shortcomings by the company constructing and operating the well.
WWF-Australia, which played a significant role in publicising the impact of the remote spill, has welcomed the report, calling for the Federal Government “to get serious about protecting Australia’s oceans and coasts” with “a network of marine sanctuaries that prevent drilling for oil and gas in the most environmentally sensitive areas”.
The report, completed during early stages of the catastrophic Gulf of Mexico explosion and oil spill but not handed down to the Australian Parliament until this week, was also highly critical of the Northern Territory Department of Resources, saying it “was not a diligent regulator and its minimalist approach to its regulatory responsiblilties gave it little chance of discovering these poor (company) practices."
Initial undersea cementing problems on the exploration well were compounded by only one of two planned secondary well control barriers being installed, the report found.
The blowout took 73 days to kill. The inquiry was told the oil from the blowout covered 90,000 kilometres of sea and reef – much more than the area admitted to during the spill.
“When WWF visited the toxic spill last year, it was evident dolphins and sea birds were swimming through a noxious mix of oil and chemical dispersants,” said Dr Gilly Llewellyn, WWF-Australia’s Conservation Manager.
“This kind of environmental disaster is unacceptable. Montara and the Gulf of Mexico spill have shown the worse case scenario can and does happen.”
WWF has welcomed the Government’s decision to accept public comments on its draft response of tightening regulatory oversight and better monitoring the impacts of spills on wildlife.
