Indonesia will seek compensation from a company operating a Timor Sea oil rig that last year leaked into Australian and Indonesian waters and caught ablaze, President Susilo Bambang Yudhoyono said on Thursday.

The West Atlas rig -- located off the Western Australian coast and operated by PTTEP Australasia, a unit of Thai energy giant PTT Exploration and Production -- poured oil into the Timor Sea for over two months after springing a leak in August last year.

Yudhoyono told his cabinet on Thursday he would soon read a report from the transport ministry on the environmental disaster.

"Of course, I will fulfil our obligations to finalise this issue, and put forward a claim to the company that caused this oil spill, while ensuring continued good diplomatic relations with both the government of Australia and the government of Thailand," he said.

He did not say how much compensation Indonesia would seek.

The president said the area surrounding Indonesia's southernmost island, Rote Island, had been affected by the spill and deserved "decent compensation".

"What is clear is that the company must give something to take responsibility for that incident," he said.

PTTEP's chief executive, Anon Sirisaengtaksin, told Reuters the company was not aware of the compensation matter.

"I have no opinion about this," he said.

Reuters