Case background: On August 21, 2009, the Montara Wellhead Platform, located in Australian waters approximately 250 kilometres southeast of Indonesia and operated by PTTEP Australasia (Ashmore Cartier) Pty Ltd (PTTEPAA), experienced a blowout. This event led to an uncontrolled release of oil and gas into the surrounding environment for 74 days until it was successfully contained on November 3, 2009. Estimates suggested that during this period, the spill involved up to 2,000 barrels of oil per day, amounting to approximately 148,000 barrels (23.5 million litres) of oil.  

Initiation of proceedings: On August 3, 2016, a class action was filed in the Federal Court of Australia on behalf of 15,000 Indonesian seaweed farmers from Nusa Tenggara Timur (NTT) province in Indonesia in which seaweed farming was a significant economic activity before the oil spill occurred and was severely affected by it. The plaintiffs claimed damages to their livelihoods due to the environmental impact of the Montara oil spill in the Timor Sea.  

Court decisions: On March 19, 2021, the Federal Court Australia delivered a judgment finding that the oil company, PTTEPAA, owed a duty of care to the representative applicant and the Group Members, and that it had breached that duty. The court found that oil spilled from the Well blowout reached certain areas of Indonesia (conveniently described as the Rote/Kupang region), including the area where the representative applicant grows his seaweed crop, and consequently caused, or materially contributed, to the death and loss of his crop. The court awarded the applicant damages as 252,997,200 Indonesian Rupiah (IDR) ordering that this sum be converted to Australian dollars.  

While delivering this judgment, the Court faced challenges in addressing certain key aspects that were crucial for defining the damages: (a) identifying the specific areas in the Rote/Kupang region affected by the oil from the Well blowout, (b) determining the timing of when the oil reached these areas, and (c) establishing whether the oil caused or significantly contributed to the death or damage of seaweed and/or affected seaweed production in those regions. The court answered these outstanding issues on a judgment delivered on October 25, 2021.  

Following these judgments, the parties attended a Court-ordered mediation in September 2022.  

In November 2022, the parties agreed to settle the proceeding for AUD $192.5 million including legal costs and litigation funding commission. The proposed settlement has been agreed on a no admission of liability basis. 

On February 23 and March 3, 2023, the Federal Court approved the settlement and detailed the distribution of the settlement sum, including deductions for legal costs and funding commission. 

In June 2023, Settlement Distribution Scheme was signed. The payments of the compensation sums commenced in 2024.