Ministry suspends Lapindo?s plan to resume drilling activities
Saturday, January 9 2016 - 04:32 AM WIB
The Ministry of Energy and Mineral Resources has suspended a plan by PT Lapindo Brantas Inc, which is controlled by the politically-connected Bakrie Family, to resume drilling activities at gas wells in Sidoarjo, East Java, amid lingering concerns over past disastrous mudflow incident following drilling activities carried out by the company not far from the planned new drilling site.
IGN Wiratmaja, Director General of Oil and Gas at the ministry, said on Friday that his office has coordinated with the upstream oil and gas authority SKK Migas to suspend Lapindo?s plan 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, Sidoarjo pending completion of safety review both in terms of geological and social aspects.
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.
Minister of Public Works and People?s Housing, Basuki Hadimoeljono also expressed Firday concerns over Lapindo?s plan to resume drilling activities in Sidoarjo particularly as the company has yet to repay its debt to the government.
Meanwhile, Vice President Jusuf Kalla supported Lapindo?s plan to resume drilling activities, arguing that it would help the company obtain income that can be used to repay back its debt to the government.
Editing by Reiner Simanjuntak