Cost to overcome Lapindo mudflow reaches US$70 million
Tuesday, August 22 2006 - 03:39 AM WIB
The cost to overcome the Lapindo mudflow disaster following leak at a gas well facility of PT Lapindo Brantas in Sidoardjo, East Java, is estimated to reach US$70 million, Investor Daily reported on Tuesday.
Company energy operation Faiz Shahab was quoted as saying that about $27.5 million will be covered by insurance firms, adding that the company had enough cash to cover the cost and would not affect its performance.
PT Energi Mega Persada through Lapindo controls 50 percent stake in Brantas PSC, with Medco Energi and Australia-based oil and gas firm Santos owning 32 percent and 18 percent respectively.(*)