PTTEP gives $5m compensation

Thai-based PTTEP Australasia finally agreed to pay US$5 million compensation for the polution in Timor Sea caused by oil spill at the company?s Montara block in 2009, which has affected about 3,200 fishermen in the area.

Transportation Minister Freddy Numberi said the company initially only wanted to pay $1 million, but the government insisted on $5 million and finally they agreed. The amount, however, was only for the communities affected by the oil spill, said ministry spokesman Bambang S. Ervan.

Bambang said the government would continue to push PTTEP to soon propose their calculation on the total amount of compensation. If they continued to stall the process, the government would file a lawsuit against them to the International Court, he said. (*)