PTTEP clashes with Indonesia

JAKARTA, May 9, 2017 – PTT Exploration and Production on Tuesday said it would be suspending further investments in Indonesia following a lawsuit brought against it over oil spill-related environmental damage.

Last week, Indonesia sued the Thai major for some USD 2 billion for alleged damage to the marine environment along the coast of East Nusa Tenggara. Jakarta claims the damage is a result of the 2009 Montara wellhead fire in the Timor Sea, which polluted Australian waters.

Ranking as one of Australia’s worst spills, the local PTTEP subsidiary pleaded guilty in 2011 to workplace health and safety charges.

Indonesia maintains that PTT Australasia “has not shown good intention in resolving the pollution problem of the Montara oil spill,” a statement from the Maritime Coordinating Ministry released on Friday said.

“Due to the current lawsuit, PTTEP has decided to suspend its investment decision in potential projects until further conclusion of the lawsuit,” the company said in a reaction on Tuesday. Last week, it stressed it had always acted in “good faith,” vowing to continue to do so.

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