Lapindo secures 1500 HP rig believed able to stop mudflow

Oil firm Lapindo Brantas Inc said on Friday that the Banjarpanji Emergency Task Force (BETF) had secured a 1500 HP international drilling rig to ascertain and cement off the source of the water or mud that are flowing out of the broach at the Banjarpanji-1 onshore well in East Java.

Lapindo said in a statement that the equipment was now being mobilized to a location about 500 meters from the Banjarpanji-1 well and 350 meters from the broach -- a term used in the industry to denote "opening in the ground".

Lapindo said the drilling activity using the rig was expected to last for two months starting before the end of this month.

According to Lapindo, the recent snubbing unit activities using a 750 HP rig have confirmed the source of the mudflow and the possibility to to seal it off. However, it is not possible to seal off the source of the mudflow using the 750 HP equipment.

The mud continues to flow out the broach until today and has covered some 200 hectares of land.

Lapindo said it had been providing emergency accomodations, amenities, food, water and a cash allowance to 8000 villagers displaced by the mudflow.

The company is also providing cash allowances to the factory workers who have been forced to stop working as their factories have been closed because of the mud.

BETF comprises officials from oil and gas upstream regulator BPMIGAS, the Ministry of Energy and Mineral Resources, the Office of State Ministry of the Environment, plus the local and regional governments. The task force was formed to find solution to the problem caused by the mudflow.

Lapindo operates Brantas PSC, where the Banjarpanji is located, with a 50 percent interest. Other partners in the block are publicly listed oil firm PT Medco Energi Internasional and Australian firm Santos Limited. (denny)