Govt involves experts in evaluating Lapindo drilling plan

The government will involve experts in evaluating the plan of PT Lapindo Brantas Inc, which is controlled by the politically-connected Bakrie Family, to drill two wells in the area of Sidoarjo, East Java, where previous drilling by the firm resulted in disastrous mudflow.

Director General of Oil and Gas IGN Wiratmaja said in a press conference on Monday that the experts come from the Ministry of Energy and Mineral Resources, upstream authority SKK Migas, the National Exploration Committee, and the Indonesian Geologists Association (IAGI).

Wiratmaja said Lapindo Brantas has thus broke no procedures in its drilling plan. The Work Program & Budget (WP&B) for the drilling plan has been approved by SKK Migas and the firm has also secured permits from the local government. The only permit which it has yet to obtain is the work safety and spud in permit from the Directorate General of Oil and Gas.

Lapindo plans to drill the Tanggulangin (TGA)-6 well at the TGA-1 well pad, and the Tanggulangin (TGA)-10 well at TGA-2 well pad in Tanggulangin

A mudflow incident occurred in 2006 in Porong, Sidoarjo, following drilling activities carried out by Lapindo, inundating thousands of houses, and forcing families to leave the area. The planned new drilling site is only located about 2.5 km from the old well.

The government has been forced to provide loans worth more than Rp 781 billion to Lapindo to help the company pay compensation for the victims. Reports said that Lapindo has yet to complete the compensation payment.

Meanwhile, Djoko Siswanto, Director of the Management of Upstream Activities at the Directorate General of Oil and Gas said the location selected by Lapindo for the drilling is considered safe. However the government has asked the firm to first photograph the conditions underground.

Editing by Johannes Simbolon