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JAKARTA (Reuters) - 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.

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