Fidelis E Satriastanti, Jakarta – The Rote Ndao district administration in East Nusa Tenggara will seek Rp 7 trillion ($780 million) in compensation for last year's Montara oil spill in the Timor Sea, an official said on Monday.

The news comes ahead of an expected announcement later this week by the government of a final figure for the payment being demanded from Thailand's PTT Exploration & Production Australasia, which operated the Montara oil rig that blew up in August 2009.

The government is set to name the figure in its second round of negotiations with PTTEP on Wednesday, which will be conducted in Perth, Australia.

Rote Ndao district head Leonard Haning, who is also a member of the Indonesian negotiating team, said the Rp 7 trillion included the long-term cleanup and rehabilitation costs.

"We're no longer talking about the pollution, but also about the damage caused by the incident and how much it will cost," he said on Monday. He added that the total financial liabilities of PTTEP will be determined at their meeting with the company.

"The purpose of this second meeting is to present our compensation claims based on scientific research," Leonard said.

"In my district, fishermen and seaweed and pearl farmers are up in arms about the spill. The oil has affected seaweed and pearl farms, mangroves, beaches and coastal areas."

The Indonesian team argued in the first round of negotiations that PTTEP should be made liable for the oil spill which has spread into Indonesian waters.

Masnellyarti Hilman, the head of the negotiating team, said the government's final compensation demand also included the cost of environmental restoration.

"The previous estimate that we put out was only for the direct losses stemming from the oil spill, but now we're also looking at the prospects of the environment recovering completely," she said.

Transportation Minister Freddy Numberi said direct damages resulting from the spill had been estimated at Rp 500 billion.