PTTEP Australasia says it will wait for expert assessment on damages over its Timor Sea oil leak saga, which is estimated to have cost the company more than $170 million, before deciding on whether it will resume production in the future.
PTTEP Australasia says it will wait for expert assessment on damages over its Timor Sea oil leak saga, which is estimated to have cost the company more than $170 million, before deciding on whether it will resume production in the future.
The company announced yesterday that its fifth attempt at plugging the leaking oil well had been successful and it had extinguished the main fire at the Montara wellhead platform.
Oil has been leaking into the Timor Sea since August 21 at a rate of 400 barrels a day, according to PTTEP.
During an attempt to plug the well with heavy mud on Sunday a fire had broke out at the rig and platform.
In a press conference late yesterday, PTTEP chief financial officer Jose Martins said while the company knew the cause of the leak it would not divulge the information until proper legal processes were undertaken.
Federal Resources Minister Martin Ferguson has previously said the government will conduct a full inquiry into the incident.
In an update today, PTTEP said the well is under control and the fire at the platform had been completely extinguished.
The company said thermal imaging technology is showing the rig and platform had cooled down to 80 degrees Celsius and continues to lose heat quickly.
A team of specialists on the West Triton relief rig, stationed near the West Atlas rig, was preparing to re-board the West Atlas rig and the Montara wellhead platform, PTTEP said.
Once on board the team would conduct a damage assessment of the well head before plugging it permanently.
"Assessments and safety preparations will determine how the next phase to plug the well will be carried out," PTTEP said.
"The company expects the wellhead platform will be reboarded by next week following safety assessment and approval by the National Offshore Petroleum Safety Authority."
In a separate statement, the company said a future production plan for the rig will be considered once experts had assessed the damage.
The company added that it had insurance coverage of $US270 million ($A301 million) and will soon start working to claim the damages which will be booked as income in the next quarter.
Last week it revealed the incident had cost the company more than $170 million, including a $5.3 million clean-up bill from the federal government," Mr Martins said.
"PTTEP remains committed to fully funding the spill clean up and environmental monitoring programs being undertaken by the lead federal government agencies.
"As we also stated yesterday, the company will fully co-operate with the federal government inquiry which has been foreshadowed by Resources and Energy Minister Martin Ferguson."
WA Business News understands that since September small patches of weathered oil had crossed into Indonesia's exclusive economic zone.
"Australia continues to monitor the situation and keep Indonesia closely informed of the movement of oil and sheen, and of our extensive response efforts," the Australian Maritime Safety Authority said yesterday.
AMSA further said it would coordinate closely with Indonesian authorities about its ongoing monitoring efforts.
