Last week, an Australian court ordered Thai energy giant PTT Exploration and Production (PTTEP) to pay fines totalling A$510,000 (16.5 million baht) for damages from the 2009 Montara oil spill off the coast of northwest Australia in the Timor Sea. Indonesia is still seeking US$2.4 billion (75.3 billion baht) in compensation for damage to reefs and fisheries. Reportedly none of the oil washed up on Australian shores.
An Australian government inquiry found that PTTEP was culpable for widespread and systematic shortcomings leading to the spill. PTTEP pleaded guilty to breaching the Offshore Petroleum Act, and admitted it failed to take all reasonable steps to prevent the spill and placed rig workers in danger. Fortunately all 69 workers were safely evacuated after the blowout from the Montara wellhead platform on Aug 21, 2009.
Considering that at least 20,000 barrels of oil leaked over a period of 10 weeks the fine seems rather light, but this was largely because PTTEP took immediate responsibility and the court determined that it also took appropriate actions to mitigate damages, working closely with the Australian government. Magistrate John Lowndes determined that PTTEP had shown contrition and remorse over the Montara incident, and had ``met head-on its culpability''.
Moreover, according to Tevin Vongvanich, PTTEP's president and chief executive, because of the Montara spill, the company has ``significantly transformed its operations and culture. We plan to be a trusted, open and respected operator in the Australian oil and gas industry now and in the future.'' The company is also engaged in environmental monitoring operations which are much more costly than the fine.
If Mr Tevin can be taken at his word, this attitude adjustment is of far more value than laying on prohibitive fines, especially as PTTEP is taking a steadily increasing role in energy exploration and production in the region and beyond. The company is set to restart production at its Montara project next month, and it is certain that the Australian government and people will be keeping a close watch on the Thai energy giant.
IAEA'S IRAN REPORT NO CALL TO ARMS
The report released on Thursday by the International Atomic Energy Agency on Iran's nuclear programme is sure to bring renewed speculation that Israel will act militarily to pre-empt Iran's future capability to build a nuclear bomb. The report says Iran secretly doubled the number of uranium enrichment centrifuges it has in a heavily fortified underground bunker. It also says that Iran stalled for time after the IAEA demanded access to the Parchin military site in January, apparently until it had time to clean up the site.
Many will see the IAEA report as a smoking gun proving that Iran's claim that its nuclear programme is entirely intended for peaceful purposes is a false one. But whether or not this is the case, it doesn't change the fact that a military strike on Iran by Israel alone or with a third country would be a tragic mistake.
In fact there is no hard evidence that Iran is actually trying to develop a nuclear weapon. Although it seems plausible this may be a long-term goal, according to reports both US and Israeli intelligence agencies do not believe Iran has taken committed steps toward a nuclear weapon and is keeping enrichment below 20%, far short of the 90% needed for a nuclear warhead. The Iranian government says its centrifuges are currently producing uranium enriched to 19.75% for medical purposes.
It is ironic that the IAEA report came as Iran was hosting a summit of the 120-nation Non-Aligned Movement which voted unanimously to support Iran's right to pursue its nuclear energy programme and criticised Western attempts to isolate Iran with economic sanctions. But also at the summit in Teheran was UN Secretary-General Ban Ki-moon, who called on Iran to cooperate more with the UN's watchdog agency. He repeated the message in talks with Iran's religious leader Ayatollah Ali Khamenei, who was also at the summit. Mr Ban is absolutely correct. Iran's complete cooperation with the IAEA is the best way to lay to rest the tiresome and persistent threats of a military conflict with potentially wide-ranging and catastrophic consequences.