Resident sues Gulf Resource for oil leakage

A resident in the Kotabaru district of Jambi province has threatened to file a legal suit against state oil and gas company Pertamina's production sharing partner Gulf Resource for allegedly causing pollution on his property, Sriwijaya Pos reported on Monday.

Chalvin Pasaribu, a resident of the Kenali Asambawah village, said on Saturday that his property had been heavily polluted due to a leakage in one of the oil company's oil pipes near his house, and demanded the oil company to pay compensation of Rp 5 million for the losses due to the oil spills.

He said that he would take the case to the court if the company continued to refuse to pay the compensation demand. He acknowledged that the company had offered him Rp 500,000 as the compensation but he turned down the offer because it was too small as compared to the losses he suffered due to the oil spills.

According to him, the property, which he would initially use as a fish pond, could no longer be used due to the oil pollution. A number of coconut and other fruit trees were also dying due to the oil pollution, he added.

Three other residents in the village had also planned to sue Gulf Resource over the oil spill but they cancelled their plan after the company paid them compensation of between Rp 300,000 and Rp 500,000 each. (*)