JAKARTA (TheInsiderStories) – PTTEP, an oil and gas company of Thailand, has decided to suspend its investment in Indonesia. The decision was made after the Indonesian government file lawsuit over Montara oil leak.
“Indonesia is one of strategic investment countries of PTTEP that the company has plan to continuously invest in,” PTTEP said.
“However, due to the current lawsuit, PTTEP has decided to suspend its investment decision in all future projects until further conclusion of the lawsuit,” it said in a statement.
The Indonesian government filed a Rp 27.4 trillion compensation lawsuit at the Central Jakarta District Court over the explosion tragedy at the Montara oil and gas field in Australia in 2009, which has polluted the waters of the Timor Sea, East Nusa Tenggara (NTT) province.
The lawsuit was filed on May 3 against the Australian Petroleum Authority of Thailand Exploration and Production Australasia (PTTEP AA), the Petroleum Authority of Thailand Exploration and Production Public Company Limited (PTTEP) and the Petroleum Authority of Thailand Public Company Limited (PTT PCL) based in Thailand. PTTEP is a state-owned enterprise (SOE) of Thailand.
PTTEP said it is ready to prove no environment damage as per the claim made by the Indonesian Government
PTTEP and PTTEP AA are confident in the results of the environmental studies and ready to prove that there is no damage as per the claim made by the Indonesian Government and reported by the media, it said.
As for the report of confiscation of assets of PTTEP and PTTEP AA, both companies believe that such action could not be done according to applicable laws.
Somporn Vongvuthipornchai, President and Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP) said “PTTEP and PTTEP Australasia (Ashmore Cartier) Pty Ltd (PTTEP AA) have not officially received the lawsuit documents and have prepared readiness to defend and proceed with the legal case.”
According to PTTEP AA’s legal advisors’ preliminarily advise, the confiscation of assets of PTTEP and PTTEP AA could not be conducted based on applicable laws, it said.
Currently, PTTEP Netherlands Holding Coöperatie U.A. (a subsidiary of PTTEP) has one operating asset in Indonesia by a holding of 11.5% interest in the Natuna Sea A Project. The Project’s total sales volume of natural gas is approximately 224 million cubic feet per day with approximately 1,200 barrels per day of crude oil representing the net contribution of approximately 1% to PTTEP’s total sales volume. (*)