Thai State-Owned Company Renews Interest in Developing Oil and Gas Projects in Indonesia
JAKARTA – A Thai oil and gas company is known to have renewed its interest in investing in the upstream oil and gas sector. The management of PTT Thailand Indonesia, together with PTT Thailand management from Bangkok, paid a visit to SKK Migas.
The meeting was a follow-up to PTT Thailand’s plan to return to investing in Indonesia after the government lifted the investment moratorium on the Thai energy company.
Djoko Siswanto, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), said the arrival of PTT Thailand’s management was part of the follow-up process after the government and PTT agreed to lift the investment moratorium.
“The management of PTT Thailand Indonesia and PTT Thailand Bangkok came to the SKK Migas office as a follow-up to PTT Thailand’s plan to reinvest in Indonesia after the moratorium was lifted,” Djoko said in a statement to Dunia Energi on Friday (21/8).
Djoko expressed hope that the investment process would proceed quickly and smoothly so that PTT Thailand’s investment commitment could be realised in Indonesia soon.
“Please pray that it runs smoothly, safely and quickly so that the investment can be implemented soon,” he said.
Previously, the government agreed to lift the investment moratorium on PTT Thailand after the company fulfilled its obligations regarding compensation for the Montara oil spill case.
PTT Thailand’s return to Indonesia is inseparable from the resolution of the Montara oil spill case that occurred in 2009. The incident began with a leak at the Montara well in the Timor Sea operated by PTT’s subsidiary, PTTEP Australasia.
The leak lasted for months and became one of the oil pollution incidents that attracted widespread attention in the Timor Sea region.
The Montara case then developed into a lengthy dispute between the Indonesian government, affected communities in East Nusa Tenggara and PTTEP. In 2017, the Indonesian government even filed a lawsuit of around US$2 billion over alleged environmental damage caused by the oil spill.
In its development, PTTEP agreed to pay compensation of A$192.5 million to affected communities, particularly seaweed farmers in East Nusa Tenggara. The settlement of the compensation became one of the bases for the Indonesian government to reopen the door for PTT investment in Indonesia.