Timor sea oil spill – Sorry seems to be the hardest word

Environmental Management 14 Comments
Slush spilling out from the damaged West Atlas Oil Rig

(Slush spilling out from the damaged West Atlas Oil Rig) (Image by Chris Twomey via Wikipedia)

“Sorry” was the hardest word for Elton John, according to his 1976 classic hit.

It also seems to be a pretty difficult word for Jose Martins, Chief Executive Officer of PTTEP Australasia, a subsidiary of Thai oil exploration company PTT Exploration and Production Company Limited.

Mr. Martins’ refusal to apologize (refer article) for what is believed to be Australia’s third-worst oil disaster – the result of a leakage from one of the company’s oil rig’s off the north coast of Western Australia, is simply inexcusable and pathetic.

 
An environmental catastrophe
The debacle occurred at the site of the West Atlas oil rig, an offshore oil rig which is located in the Timor Sea about 200km off the north west coast of Australia, which is operated by PTTEP Australasia.

As a result of a leakage from the rig, massive amounts of oil began spilling into the sea on August 21. This continued over the course of a ten week period until the company was able to plug the leak by pumping mud into a relief well which was set up for the purpose of intercepting the leaking well (refer article).

Environmental groups say the impact of the spill, which occurred within what is considered to be a key migration route for whales and humpback turtles, could be catastrophic, and the company has acknowledged that it could take as long as seven years to work through the full environmental impact (refer article).

[Along with whales and turtles, many other species, such as spinner dolphins, sooty terns, spotted sea snakes have been observed swimming in the resulting slick in the nearby area.

Biologists have also raised serious concerns about the impact upon birds, marine invertebrates, algae coral and marine algae in the region from exposure to the toxic effects of the leak (refer article)]

 
“We regret it – but we won’t say sorry
Asked whether or not the company was prepared to apologize, PTTEP Australia’s Martins refused (refer article). Instead, Martins simply stated that “We regret what’s happened,” and that “the rest will have to come out in the inquiry (see below).”

Pathetic.

Mere expressions of regret are appropriate when we are talking about overcharging of customers, shipments of incorrect merchandise or a publicity stunt gone wrong. But they simply do not cut it in cases like this when we are talking about years of serious environmental damage resulting from a nation’s third largest spill on record. Only full and frank apologies are adequate in such cases.

(The inquiry to which Martin refers has been set up by the Australian government to investigate the cause of the spill. The company has also set up it’s own internal inquiry)

 
Genuine legal concerns …
It is somewhat understandable that PTTEP would not be keen to say a great deal prior to the outcome of the inquiry – lest anything said now backfire later in legal proceedings.

And in that regard, one would imagine that they would have plenty to worry about. Nearby tiny island nation of East Timor is making noises about possible compensation and there are fears about effects within Indonesian waters as well (refer article).There are plenty of areas where litigation could arise over the course of the coming years and the company is understandably coy about making any form of statement which could aid or encourage any litigation efforts.

(More, in a later post, about the need to allow companies to give proper apologies without fear of adverse legal ramifications from any apology given)

 
.. but surely an apology will be needed anyway
But that is no excuse to delay an apology – not least because a full and proper apology will surely be warranted irrespective of the inquiry outcome.

True, we don’t yet know whether or not this incident was the simply the result of an unavoidable accident or whether negligence was a contributing factor.

But this shouldn’t matter – at least not as far as the issue of an apology is concerned. Let’s look at what we do know for certain:

(1) Beyond doubt – the spillage resulted from leakage from a rig operated by PTTEP
(2) Beyond doubt – the environmental damage is serious and long term.
(3) There are no serious suggestions sabotage or interference from any external party whatsoever.

These facts are not in dispute, and are surely sufficient to warrant a full and frank apology even if the outcome of the inquiry concludes that the company was not negligent.

Delaying tactics on the part of the company in this regard represent extremely poor conduct.

Elton may have found ‘sorry’ a little difficult, but neither the Australian people or people from affected surrounding nations deserve anything less than a full apology from PTTEP.

 
 

14 Responses to “Timor sea oil spill – Sorry seems to be the hardest word”

  1. Brad Shorr Says:
    November 6th, 2009 at 10:06 pm

    Hi Andrew, What a terrible mess- literally and figuratively. Nobody gains anything here. You probably put your finger on the reason why an apology has’t been issued. An apology from PTTEP could be construed in the courts as an admission of guilt. The firm’s leaders surely do not want to jeopardize the firm itself even though human sensitivity and smart PR/marketing say an apology is totally in order. (This is an interesting business ethics question I would love to see you tackle one day.)

  2. Andrew Says:
    November 7th, 2009 at 7:21 am

    Hi Brad,

    It’s certainly an interesting question and one which I have seen raised before, particularly on a blog by lawyer Lauren Bloom on her blog (The Business Ethics Blog).

    One can understand how plaintiff legal council might twist the meaning of any apology, and whilst this does not excuse PTTEP in any way, shape or form, it is a great pity that companies cannot make good-faith apologies without fear of repercussions.

  3. Fred H Schlegel Says:
    November 8th, 2009 at 7:09 am

    Hi Andrew,

    When the legal system decided that saying you’re sorry was an admission of guilt it cut off an entire pathway towards healing for both victims and participants alike. We live in a world where things go wrong and being sorry when they do is both appropriate and meaningful. In situations where ‘guilt’ has to be applied because of avoidable mistakes, regret that the mistake happened should really not increase a penalty, but I guess in some minds it can.

  4. Andrew Says:
    November 9th, 2009 at 6:24 pm

    Fred,

    It is right, as you say, that being sorry is both meaningful and right when things go wrong, even if negligence was not the cause of the problem.

    Companies should be punished for any form of negligence, but should not be penalized by the legal system for good and proper apologies.

  5. Ana Says:
    November 13th, 2009 at 1:05 pm

    While there may be very reasonable legal reasons not to issue an apology, or at least admit to an error, it really is bad for a corporation’s image. It also feeds into the stereotype that many have that big business, for all of its innovation and efficiency, really doesn’t care about anything but the bottom line. But I do wonder sometimes whether bad pr really hurts a company in the long run. People forget so quickly. And, particularly with oil companies, who’s going to boycott them? We all have to feed the fuel beast.

    It’s pretty mixed up. Businesses have a fiduciary responsibility to shareholders, but at what point do corporations (which are legal persons) actually need to behave as responsible members of a community? As a consumer, I would certainly have a better attitude toward a company that, for once, actually volunteered to clean up a mess it has actually made. Maybe there are companies like that, but, unfortunately, we don’t hear about them.

    Actually, that’s a good question. At what point does fiduciary responsibility to stakeholders take a back seat to general responsibility to society?

  6. Andrew Says:
    November 13th, 2009 at 7:00 pm

    Ana,

    You raise some interesting questions, which seem to go strike at the core foundations of capitalism, free enterprise and the fundamental purpose of business.

    Actually, with regard to your last question I would even venture one step further and venture to say that, for firms of a certain size, society in general should be considered to be a stakeholder.

    That said, I am not particularly certain what kind of priority society as a whole should be given compared with other stakeholders. Certainly, in most cases, shareholders and customers should take precedence. But when we are talking about major environmental disasters, surely society as a whole should be given some priority.

    (With regard to this case in particular, I should point out that PTTEP did actually undertake considerable effort and expend a lot of money in cleaning the mess up.

    My personal complaint does not relate to their efforts in stopping the leak, but rather in addition to stopping the leak, an apology was warranted for the fact that the leak occured in the first place)

  7. Walter Says:
    November 16th, 2009 at 2:28 pm

    Those people does not care about the environment. They only care about their business. I’m oftentimes puzzled at how these people manage to differentiate themselves from the environment. If the balance of life is altered, we are the ones who will suffer in the end–we and the generation that will come after us.

  8. Andrew Says:
    November 28th, 2009 at 6:39 pm

    Hi Walter,

    Thank you very kindly for your comment and welcome to my blog.

    I agree. Failure to look after the environment will only come back to haunt the human race at some stage.

  9. Lauren Bloom Says:
    January 6th, 2010 at 11:39 am

    Hi Andrew,

    Great post on a very important topic that has received far too little attention in the U.S. Brad and Fred are undoubtedly right that the litigators are standing in the way of an apology yet again. Too bad – as the medical profession in the U.S. is teaching the rest of us, a timely and well-crafted apology can actually prevent lawsuits and do a lot to restore trust.

  10. drew Says:
    January 9th, 2010 at 7:36 pm

    Hi Lauren,

    Lovely to hear from you!

    PTTEP could have certainly used the advice of someone with your expertise and experience in their public handling of this case.

    I guess the situation confronting PTTEP was especially complex given the possibility of legal action from within three different countries (Australia, East Timor and Indonesia), each with completely different legal systems – any apology issued would obviously have to be appropriately worded to cater for the potential legal action in any of the three countries concerned. I can’t imagine this would be easy, especially given that East Timor is less than ten years old as a country and therefore probably does not have a particularly well developed legal system.

    Still, I well crafted lawsuit would certainly have done PTTEP’s reputation a whole lot of good.

  11. Nik Says:
    January 12th, 2010 at 4:48 pm

    Andrew, thanks for raising this, that the media have barely covered this in the US is hardly surprising, media in Australia seem to have left the issue entirely off their agenda. The leak was in the Browse Basin, off the northern Kimberley coast. The Kimberley Region in Western Australia, one of the last true wildernesses in the world, has just 36,000 people living in an area more than twice the size of England (and the population is predominantly under 30yo) – we simply do not have the people power to maintain a watch on the clean up of this catastrophe. Nor do we yet have the capacity or political clout to keep the Western Australian Government honest and open in its plans for industrialisation of one of the most beautiful, untouched regions in the world. The latest drill rig is drilling to prepare for an LNG precinct just 50 km from us in Broome. Thanks for your watching brief….nik

  12. drew Says:
    January 14th, 2010 at 3:11 pm

    Hi Nik,

    Thanks for your comment and welcome to my blog.

    It’s nice to hear from someone in Broome – I haven’t been there yet, but I’m told that it is a great place to visit. As a fellow Aussie, I will certainly have to come up and visit at some stage.

    I can imagine that there might be a fair bit of tension between the desire to maintain the natural beauty of the area and its environment and the interests of mining in the region. I certainly hope that regional planning can be managed in such a way that industry can exploit the region potential of the region from a resources perspective whilst keeping any adverse environmental impact to an absolute minimum.

    That said, I can’t imagine that this will be easy.

    Whatever happens, I certainly hope that the regional environment can be preserved in spite of the explorative activity.

  13. Layla Collins Says:
    October 5th, 2010 at 5:59 pm

    oil spills should be controlled as soon as possible to prevent environmental damage`*”

  14. PA Amplifier Says:
    December 3rd, 2010 at 4:34 am

    oil spills can really mess up the environment, i hope we can find a very good solution to control oil spills ~”.

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