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Indonesia: Mud spill from gas well owned by Bakrie Group affiliate Lapindo Brantas/Energi Mega has displaced 12,000 over 4 months - president declares zone "disaster area"

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Article
28 September 2006

Indonesian president declares mudslide zone a disaster area

Author: AFP, in Channel News Asia

Indonesia's president has declared a part of East Java swamped by a mud spill a disaster zone...ordered that some 3,000 families be permanently relocated... [and] also ordered the Indonesian company [Lapindo Brantas (part of Energi Mega Persada)] responsible for drilling at a gas well near where the mud is flowing pay at least 1.5 trillion rupiah (US$164 million) to deal with the mess... More than 12,000 people have already been forced from their homes... Siti Maimunah, the national coordinator of Jatam, a watchdog of Indonesia's mining industry,...said contradictory reports about the toxicity of the mud needed to be clarified by the government.

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Article
21 July 2006

[PDF] Lapindo Brantas, Inc reports Banjarpanji-1 update, remedial efforts well underway

Author: Lapindo Brantas

[scroll down to p. 2] In this update, Lapindo Brantas [part of Energi Mega Persada]...reports that the company...is working hard with the local government to assist impacted communities...[and] has mobilized [two rigs that]...are focused on stopping the mud eruption... The well is...operated by Lapindo which has a 50% working interest in the PSC [production sharing contract]. The other working interest parties are PT Medco E&P Brantas [part of MedcoEnergi] (32%) and Santos Brantas Pty Ltd [part of Santos] (18%)... Lapindo is working closely with a task force...to address the situation...[to ensure] that all impacted people are taken care of...and...that all remedial actions are well supported by local communities... Lapindo is providing free medical assistance to local villagers... [The] independent team led by the Ministry of Environment has classified the mud as B3 (dangerous and hazardous, however, the hazard level has been emphasized as low)... Lapindo is providing emergency accommodation, amenities, food, water and a cash allowance to the 8,000 villagers displaced...

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